Binance Update: 13th Quarterly Burn And Binance Smart Chain (Cryptoticker)
Leading cryptocurrency exchange announced on Oct 17 that it has completed the 13th quarterly token burn, which was also the largest ever in the exchange’s history so far, in terms of approximate USD value, however not in terms of tokens. The team burned over 2.25M tokens, representing 1.27% of the total supply and currently worth over $68M.
For comparison, the last -burn-12/”> 12th quarterly burn, removed 3.4M tokens from the supply, worth over $60.5M at that time and totaling over 1.74% of the total supply. As of Oct 17, the available supply of tokens is 144M, out of total 179M tokens.
does the quarterly burn every quarter or three months, but the methodology of the burn remains unclear and unknown. It should be released in the public domain, for transparency and demonstration of good faith.
Why does it matter? It’s important, because the purpose of the token burn is to reduce available supply and thus have a positive effect on the token’s price. So, users need to be able to establish if the burn would have a positive effect on the token’s price.
In the first case, a buyback from the exchange using the company profits would allow the users to sell tokens to the and earn profit in the ensuing buying spree. It would also reduce the circulating supply.
Second case and one which is suspected, burns tokens from the already held token reserves, not yet in circulation and hence the burn doesn’t have any positive impact on the token’s price, at least in the short and medium term.
In Q3 2020, also launched the Smart Chain – a new high performance and low fees blockchain platform with ability to implement smart contracts and bridged interoperability with Ethereum Virtual Machine (EVM).
- Proof of Stake (POS) consensus: A variation of Proof of Stake. Yes, this means will be used for staking soon!
- Cross-Chain Transfer
- Cross-Chain Contract Event (Trade, Transfer)
- Block time ~5 seconds
tokens have found additional use cases on the newly launched Smart Chain. It’s used for executing transactions, paying for transaction charges, proposing and voting on new trading pairs, staking for governance on the chain etc.
- Creation of $100M USD accelerator fund for the chain, to bridge centralized and decentralized finance. There are six initial projects receiving funding.
- Also, the token canal project to support the issuance and usage of more assets on Chain and Smart Chain.
- The Panama project to allow users to bridge their cross-chain assets from wallets to Smart Chain.
- Provision of $10M in liquidity support for BSC-ecosystem based projects and $5M to BSC-BUIDL rewards program to reward developers on the new chain.
- An initiative to help users who have mistakenly sent funds to smart contracts, they are refunded by the team via “Pioneer Burn Program” and the tokens added to the next quarterly burn.