Will there be unlimited issuance of Binance Coin (BNB)?

Will there be unlimited issuance of Binance Coin (BNB)?

Answer: No, Binance Coin (BNB) will not be issued indefinitely.

Detailed explanation:

The issuance and destruction mechanism of Binance Coin (BNB) is controlled by the Binance exchange.

Issuance mechanism:

• Binance Exchange issues a certain amount of BNB every year to fund the development and expansion of its ecosystem.
• The issued quantity will decrease year by year until reaching the maximum supply of 200 million coins in 2025.

Destruction mechanism:

• Binance Exchange regularly repurchases and destroys a certain amount of BNB.
• The amount burned depends on the quarterly profit of the Binance exchange.
• Destroyed BNB will be permanently removed from circulation.

By implementing this limited supply mechanism, Binance Exchange aims to maintain the scarcity and value of BNB.

Impact:

• Limited supply helps support the price of BNB.
• The regular burning mechanism further reduces the supply of BNB, thus increasing its value.
• This mechanism enhances BNB’s investment appeal as investors believe in its long-term growth potential.

Therefore, although Binance exchange can issue new BNB, it will not issue unlimited amounts. Through its limited supply and burning mechanism, Binance exchange aims to maintain the scarcity and value of BNB.

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