Binance Issues 4th Coin Burn for Next Week
According to Binance’s whitepaper, the company aims to repurchase twenty percent of its profits in Binance Coin, or BNB, with the intent of destroying them. The hope is to continue this quarterly ritual until the company can buy back fifty percent of all existing BNB tokens. The company aims to own and destroy 100MM of BNB, leaving the same quantity to be available to users.
Binance originally began with 200M BNB coins created with a promise that no additional coins would be created. The concept behind this model is to make the currency attractive as an investment due to its nature.
Since their initial coin burn, Binance has successfully carried out three of these events with a gap of three months in between. The very first coin burn took place in October 2017, in which over 900K BNB were eliminated.
The following burn took place in January 2018, removing over 1M from their pool of existing tokens. Following this event by three months, their April coin burn removed more than 2M BNB. The most recent event is currently being scheduled to take place in the following week- sometime between the 15th of July to the 18th July.
Binance aims to break the mold this year and take its own course. Valued at about $8.25 dollars this January, the token is now worth $13.99, according to Coin Market Cap, with a gain of nearly 69%.