Binance employees burned 808,888 BNB, worth nearly $24 million, from their own coin allocations on Thursday. And they aren’t done, according to Binance CEO Changpeng Zhao.
“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.”
Binance initially created 200 million BNB and promised no more coins would ever be generated. The company’s current goal is to reduce the currency’s total circulation to 100 million BNB. The structure is designed to help make the coin an attractive investment due to its inherently deflationary nature.
Explains Zhao,
“The eventual total supply of BNB will still be 100,000,000 BNB. The current total supply of BNB is 189,000,000 BNB, which means that 89,000,000 BNB still need to be burned. The team will burn off the 80,000,000 BNB team allocation first, and the remaining 9,000,000 BNB will be burned by Binance.com exchange.”
Prior to the employee burn, Binance had used 20% of its profits every quarter to buy back BNB to burn. BNB is up over 400% since the start of the year. Bitcoin, the world’s leading cryptocurrency, is up just over 200% at time of writing.
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