Binance will no longer burn twenty percent of their profits after every quarter. The digital assets company had initially stated in the original whitepaper they would burn BNB every quarter until the existing supply had been cut by fifty percent. However, this clause was rewritten in their whitepaper in March of 2019.
The facts are, Binance wasn’t forthcoming with disclosing information on changes made to the whitepaper, which left many crypto enthusiasts, including pundits, such as Decrypt in the dark. Decrypt has been operating under the assumption that the burns carried out by Binance every quarter were an indication of just how much the company had made in terms of profits.
Buying Back 100MM
According to experts, the crypto exchange was burning BNB on a percentage of its total trade volumes. However, a Binance spokesperson spoke with Decrypt and stated that:
“The whitepaper says we burn BNB based on a percentage of our trading volume but we no longer have 20% written in the white paper itself.”
The spokesperson went on to note that:
“But it’d be more accurate to say that people assume it’s 20% and calculate backward.”
She noted that the supply would still be destroyed, but the exchange was no longer making public the information related to profits. As it is, she said, the company is private, which means that they are not obligated to disclose their profits as publicly traded companies do.
Before the changes were made to the whitepaper, the exchange had stated that it would be using twenty percent of its quarterly profits to purchase BNB from their holders. This was a practice that was to continue until fifty percent of all available BNB or 100MM had been purchased. But after the changes were made, the current whitepaper states:
“Every quarter, we will destroy BNB based on the trading volume on our crypto-to-crypto platform until we destroy 50% of all the BNB.”
TheBlock’s Larry Cermak and Ryan Selkis, the Chief Executive Officer at Messari, a data analysis website, was the first to bring the change to light on Twitter. Stating Binance has stopped being forthcoming with information.
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