- Binance CEO Changpeng Zhao announces new plans for BNB coin future burns.
- He says that going forward, BNB burns will be accelerated.
- In the last quarterly burn, a total of 3,619,888 coins valued at $165,791,000 were burnt.
Following Binance Coin’s (BNB’s) new all-time high price at $46.81, Binance CEO Changpeng Zhao announces new plans for the coin’s burn program. Going ahead, Binance will burn BNB at a much faster rate.
The latest quarterly burn of October to December 2020 saw 3,619,888 BNB burn. To clarify, that is a total of $165,791,000 in value.
Overall, this 14th quarterly burn ranks as the highest, both in terms of total BNB burnt and the value in terms of USD. This burning ensures a controlled and limited supply, thereby keeping BNB from turning into an inflationary coin.
CZ says that when BNB was first launched, the plan was to burn 100 million BNB — half the total supply. Back then, it was the trading volumes on Binance that determined the speed of BNB burns.
Ultimately, this strategy proved to be too slow. So far, the company has burnt 13% of the overall amount. That is a total of $426,304,000 in about 3 and a half years.
At this rate reaching a goal of burning 100 million would take another 27 years. The cause for this need to accelerate burns is due to the rise of BNB’s value. The coin has jumped 43,000% higher since its ICO launch in 2017.
The plan to speed up burns should allow the company to reach 100 million burns in about 5-8 years. Though they have decided to accelerate the burns, they have yet to determine by how much.
CZ says a number of reasons could influence this factor. It could depend on market conditions, BNB price volatility, and more.
The bottom line is that their plans to burn a 100 million BNB has not changed. The crypto market will only see a change in its speed and by how much.