Major cryptocurrency exchange, Binance has recently updated its whitepaper which was first released back in 2017. Although the company’s visions and goals remain the same, Binance has altered a bit in terms of profit used for buy back tokens and token burning plan.
Per the reports, Binance has removed 20% of the profits which was set to use for buyback tokens. Consequently, such buy-back clause or as updated in the older version of whitepaper ‘repurchasing plan’ has been replaced with Token Burning’ clause.
However, the reason wasn’t immediately available but reports highlight CZ’s statement towards this change. According to media reports, Binance CEO CZ says that the whitepaper has been updated to explain users about the process of token burning undertaken at Binance exchange.
In CZ’s words;
“We recently updated our whitepaper to better describe how we actually conduct the burn. For example, we removed the buy back reference because we actually don’t repurchase BNB and simply reduce the supply by burning BNB. We also removed the profit language because some regions tend to associate profits with securities, and we would like to distance BNB from that. So going forward, we plan to describe the burn this way, and burn what we burn.”
Nevertheless, Binance’s statement confirms that exchange – in fact – doesn’t use its profit to repurchase BNB rather they destroy it in accordance with trading volume. Indeed, the exchange has recently completed its seventh coin burn of 829,888 BNB tokens.
Image source – TheBlockCrypto
Original Whitepaper that includes repurchase plan –
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them until we buy 50% of all the BNB (100 million) back”
An updated version of a whitepaper that includes The burn clause –
“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.”
Undeniably, Binance since the launch in 2017 – is constantly succeeding the new milestone. The news of clause change in whitepaper comes in a wake of Binance’s native blockchain launch. Following Mainnet launch, BNB tokens will soon be migrated from ETH network to Binance Chain network.
Let us know what do you think about Binance altered clause from its whitepaper.?
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com