Binance Completes its 5th BNB Coinburn, Reducing Total Supply by 1.64 Million
In a transaction traceable on Etherscan, the team at Binance has carried out its fifth coinburn of the Binance Coin (BNB). The total supply according to coinmarketcap, now stands at 192.443 Million BNB. The circulating supply is now at 117.443 Million up from 112.443 Million a few weeks back. The extra 5 Million is part of the earlier mentioned unlocking of BNB by the exchange, to cater for the differences in figures reported of the token on Coinmarketcap and Binance. There was an initial discrepancy of 32 Million. This has since been reduced to 25.35 Million thanks to the additional coinburn.
1.643 Million BNB Token Burn = $17 Million
This is the fifth such event that is in accordance to the exchanges’s white paper. In the document, the total allocation of BNB was 200 million tokens. The funding team and angel investors were allocated 40% and 10% of this amount respectively. The other 100 Million was scheduled for the ICO phase that was open to the public.
The whitepaper went on to explain that after every quarter, Binance would use 20% of its profits to buy back BNB and destroy them. This would go on until they had bought back and destroyed 50% of the total BNB. When the process is done, only 100 Million BNB will be left. As earlier mentioned, the total supply now stands at 192.443 Million BNB.
The exchange adds the following details about its most recent token burn:
In accordance with our whitepaper, we have completed our 5th quarter token burn of 1,643,986 BNB (roughly $17MM USD equivalent).
With the exchange carrying out quarterly coinburns, the amount of BNB will gradually reduce thus increasing the value of the digital asset. With Binance also planning expansion across the globe in Uganda, Malta and Singapore, it is only natural that BNB will be at the center of all the trading activities moving forward.
There is also the scheduled decentralized exchange by Binance that will surely utilize BNB as a base currency.
What are your thoughts on the BNB coinburn? Will you consider buying the digital asset with the above update? Please let us know in the comment section below.
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