Young crypto billionaire Sam Bankman-Fried (SBF) took to Twitter to praise one of the biggest altcoin projects in the market.
Sam Bankman-Fried finds BNB coin’s new burning formula “interesting”
FTX CEO Sam Bankman-Fried (SBF), Binance’s coin 19th planned burning He evaluated the BNB burning process in a series of tweets immediately after completing it. The 30-year-old CEO says that “burning does not increase price” but “price determines burn”.
More than $740 BNB was burned earlier in the week as cryptokoin.com we transferred. In response to the incident, Binance CEO Changpeng Zhao (CZ) said that the procedure caused BNB deflation.
SBF found that the annual supply of new cryptocurrencies is determined by the BNB price, and touched on the algorithm that determines the BNB burning and issuance rates. The total amount of BNB burned each year is roughly 7.142 million. SBF sees the price of BNB as a critical determinant in determining how the burn rate will be in the years to come.
“Burning does not increase the price; price determines how much burn”
If the price of BNB rises above $1,000, the overall market cap should be roughly $200 billion; SBF estimates that $10 billion in BNB will be burned each year until only 100 million BNB remains. He also states that the burn rate of BNB changes regularly along with its pricing. If its price rises above $1,000, 10 million tokens will be burned each year, which will be wiped from the market equal to $10 billion.
If the SBF, BNB price drops, the movement will take place over the next 7-10 years. He estimates that he will reduce the supply to 100 million coins. There are currently 170 million BNB in circulation. The FTX CEO described Binance’s tokenomics as a “cool mechanism” and acknowledged that the burn rate this quarter, which removed 1.7 million BNB from the supply, is in line with the formula created by Binance.
19th quarter altcoin burn
According to the BNB auto-burn procedure, the 19th quarter BNB token burn of 1,839,786.26 BNB has been completed. The most recent quarterly incineration includes 9,403.78 BNB that was effectively burned through the Pioneer Burning Program.
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