Binance quietly changes its whitepaper, replaces the 20% profit to buyback token plan
The world’s largest exchange, Binance, has quietly made some changes to their original whitepaper, reports The Block Crypto. Most importantly, the 20% of the profits used towards the token buyback policy of Binance has been removed and replaced by a new policy.
Binance in the original whitepaper promised to use 20% of the profits to buy back BNB token every quarter. This was called as the Repurchasing plan and the exact words of whitepaper read,
“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”
But recently Binance has replaced the Repurchasing plan with “The Burn” plan. According to the new plan, Binance wouldn’t be using its profits to purchase BNB but rather destroy BNB based on the trading volume. The new plan reads,
“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.”
According to CZ, CEO and Founder of Binance, the reason for this change in Binance’s whitepaper is due to the practice of burning tokens they use.
“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.”
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