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Binance Updates Whitepaper to Tweak Section on BNB Crypto Manipulations

Binance has recently updated its white paper’s section devoted to quarterly manipulations with its native token binance coin (BNB).  In the section “Repurchasing plan” in the older version, Binance mentioned that it would buy BNB each quarter using 20% of their profits, and then subsequently destroy them until the exchange buys 50% of all 100 million BNB back.

Addressing the change, Binance CEO Changpeng “CZ” Zhao said:

“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.”

However, in the new version of the white paper, Binance has replaced “Repurchasing plan” with “The Burn” section. The section explains that every quarter, the exchange will be destroying  BNB based on the trading volume on its crypto-to-crypto platform. The process will continue  till it destroys 50% of all the BNB.Both versions mention that the exchange will eventually destroy 100 million BNB, leaving 100 million BNB remaining.

Binance BNB’s description on its website has remained unchanged at press time since November 2018, stating that Binance “plans to use 20% of its profits each quarter buy back and burn BNB, until 50% of the total BNB supply (100 million BNB) is burned. As a Binance spokesperson Binance will still burn 20% of profits within the process described in the new version of the white paper.

Yesterday, Binance launched its mainnet Binance Chain in beta testing mode for selected partners, also announcing that the exchange plans to execute the swap of its native token BNB on April 23. The announcement suggest that the exchange is producing blocks with consensus from the genesis block as of now, with its native coin BNB planned to be implemented in the genesis block.

The announcement further highlights, Binance chain explorer and Web Wallet will be made available to chosen potential partners in beta testing mode. It is expected to be opened to public access “around April 23, 2019.

Binance furnished the details of conversion of ERC-20 BNB tokens into native Binance Chain-based BNB [BEP2] coins along with the introduction of Binance Chain. The exchange highlighted it will not support the withdrawal of ERC-20 BNB tokens after April 23.