Every buy-back transaction conducted by Binance is announced via the blockchain for transparency. Binance has stated that it will use 20% of its profits from every quarter to buy back and burn BNB until the supply of the coin is 50% of the original amount (100 million BNB). The benefit is that it increases the value of the remaining coins left in circulation. Burning coins means taking them out of circulation and permanently destroying them. The token was established with a total supply of 200 million, and a key influence on BNB’s value is Binance’s strategy to buy back a percentage of the coins and ‘burn’ them. Holders of the BNB coin are referred to as Binancians.Īccording to Binance’s whitepaper, half the funds raised during the ICO were earmarked for branding and marketing, one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem, and 15% were kept in reserve for emergencies.
During the ICO process, the company offered 10% of the total number of coins (BNB 20 million) to angel investors, 40% (BNB 80 million) to the founding team, and the remaining 50% (BNB 100 million) to other participants. In July 2017, Binance held an Initial Coin Offering (ICO) for BNB which helped it to raise $15 million. It is classified as a utility token and can be used on the Binance exchange. The coin runs natively on the Ethereum blockchain and follows the ERC20 technical token standard. Staking generates income on certain crypto when it’s used to validate transactions in the currency.Binance Coin (BNB) is a cryptocurrency issued by the popular trading platform Binance. The process decreases Binance Coin's supply and affects its rarity, which can potentially affect the asset’s value.īinance also offers customers the ability to earn staking rewards for holding coins. Binance will continue burning BNB coins every quarter until it has purchased and destroyed 100 million Binance coins, or half of its original maximum supply. Since 2017 Binance has spent some of its revenues each quarter to purchase back and burn BNB. Interacting with either blockchain (BSC or BC) requires payment for network fees in BNB. BSC is a separate blockchain built in addition to Binance Chain, running parallel to BC and carrying different features such as smart contract capability. It should also be noted that BNB works in tandem with two specific blockchains -the Binance Chain and Binance Smart Chain (BSC). Binance uses a volume-based pricing model and even gives you further discounts if you use its proprietary cryptocurrency to buy and sell.īNB in practice BNB is a crypto asset similar to other digital assets on the market in that it rises and falls in value as people use and trade it. Fees generally start low, and then only move lower. Additionally, Binance has among the lowest transaction fees for cryptocurrency exchanges thanks to its commission structure. Binance offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual tokens, with a strong focus on altcoin trading. Binance was initially based in China but later moved its headquarters following the Chinese government's increasing regulation of cryptocurrency.
#Binance price software
A brief history Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created a high-frequency trading software called Fusion Systems.
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