Binance Team Burns BNB Tokens to Fulfill White paper Commitment

By Prashant Jha

Binance, one of the top cryptocurrency exchanges in the market, has made an announcement that it has finally finished the eighth edition of the Binance token (BNB) burn process. In an announcement published on the 11th of July, it also said that it is planning to burn the tokens that had been allocated to its team rather soon.

As the announcement details, 808,888 BNB (which is worth over $23 billion at the time of writing) of the Binance team allocation have been burned during the process.

As the exchange tells us, the burn is basically a way to live up to its original committment: to burn as many as 100 million BNB tokens. The team’s own allocation makes up about 40% of that total amount and that is how it is planning to do its bit in keeping to its promise.

As the announcement explained:

“According to the Binance whitepaper, 40% of the total BNB supply (80,000,000 BNB, currently worth about US$2,400,000,000) was allocated to the Binance team, as a reward to the work they have put into building the Binance ecosystem. But now, we are giving that up, and we will contribute this to the BNB burn. We are doubling down on our mission to exchange the world and spread the freedom of money.”

Basically, this is to ensure that the Binance team holds equivalent to 0 BNB from the original supply amount. All the BNB tokens that are held by the team currently are earned by them by providing services or purchased by them using their own money.

The announcement further clarified that despite the move, the Binance team will probably still be some of the largest holders of the Binance token, since most of their internal revenues are generated in terms of BNB.

Moreover, team members are also paid in terms of BNB. Therefore, these constitute the BNB they directly earn, rather than getting them from ICO allocation.

The post also said:

“While we raised US$15,000,000 worth of crypto during our ICO for operational costs. That US$15,000,000 equivalent in BNB two years ago, which is now worth US$4,200,000,000. On top of that, the Binance team is letting go of $2,400,000,000 worth of value, will burn it, to reduce supply. “

This announcement comes as a sort of mission statement from Team Binance to let the world know that they are looking at more than just earning higher profits. Now, that is something we can get behind!