Binance has updated its white paper recently. The crypto exchange reportedly updated the section of its white paper dedicated to quarterly manipulations with its native token binance coin (BNB).
Binance Changed the “Repurchasing plan” Section to “The Burn” Section
In the older version, the section of the white paper labelled “Repurchasing plan” stated that “Binance would buy back BNB each quarter using 20% of their profits, and then destroy them until the exchange buys 50% of all 100 million BNB back.
The new version has replaced this section with the “The Burn” section. The burn section explained that every quarter, the exchange will destroy BNB based on the trading volume on its crypto-to-crypto platform. This destruction will go on until 50% of all the BNB is destroyed.
The two versions however still maintained that 100 million BNB, will eventually get destroyed, leaving 100 million BNB in circulation.
The newer version appeared in the archive on March 31 while the older version of Binance’s white paper was captured on Wayback Machine on Feb. 8.
Despite the update, the exchange’s native token’s description on its website has not changed. The same description since launching in November 2018 was maintained.
The plan “to use 20% of its profits each quarter buyback and burn BNB, until 50% of the total BNB supply (100 million BNB) is burned” also remains the same.
Binance CEO Changpeng “CZ” Zhao has also confirmed the change recently.
“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.”