Binance Coin Burn Incoming – Here’s When It Will Ignite
Binance is approaching the quarterly coin buyback and burn of its Ethereum-based token Binance Coin (BNB).
Here’s a look at how the coin burn works, according to the company’s whitepaper:
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”
Binance initially created 200 million BNB and promised no more coins would ever be generated. The structure is designed to help make the coin an attractive investment due to its inherently deflationary nature.
So far, Binance has executed three coin burns three months apart. The first was on October 18th of last year, when 986,000 BNB coins were burned.
The next burn came on January 15th of this year, and eliminated 1,821,586 BNB from the supply.
Three months later, the third coin burn hit, with 2,220,314 BNB burned on April 15th.
If past is prologue, the next burn will happen in about a week, between Sunday, July 15th and Wednesday, July 18th.
This year, Binance Coin has ignored the bearish trend in the market and has gone its own way. The coin started the year at about $8.25 on January 1st. It’s now $13.99 on CoinMarketCap, at time of publishing – a gain of about 69%.
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Comments 5
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Anonymous
Jul 13, 2018What this means is that between the 15th and 18th they will buy and burn 20% of the quarterly earnings worth… this is an official commitment by Binance and it’s already been in effect for the past 3 quarters! The deflationary aspect of Binance coin, along with the real use case of getting 50% off transaction fees using Binance coin makes this a solid coin to be invested in!
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Aswath
Jul 10, 2018But , there are no official announcements from BNB regarding July 2018 BNB burn ? Why is that ?
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mph
Jul 10, 2018Yea, fromwhere this info?
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Dark Blue (@nyltak2015)
Jul 9, 2018What does it mean to us, that they will do a burn? will ether jump?
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Anonymous
Jul 9, 2018historically this mean the value of bnb goes up
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Comments 5
Anonymous
Jul 13, 2018What this means is that between the 15th and 18th they will buy and burn 20% of the quarterly earnings worth… this is an official commitment by Binance and it’s already been in effect for the past 3 quarters! The deflationary aspect of Binance coin, along with the real use case of getting 50% off transaction fees using Binance coin makes this a solid coin to be invested in!
Aswath
Jul 10, 2018But , there are no official announcements from BNB regarding July 2018 BNB burn ? Why is that ?
mph
Jul 10, 2018Yea, fromwhere this info?
Dark Blue (@nyltak2015)
Jul 9, 2018What does it mean to us, that they will do a burn? will ether jump?
Anonymous
Jul 9, 2018historically this mean the value of bnb goes up