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SBF
@SBF_FTX
3) Based on the original specs, BNB was going to burn 20% of profit. Based on this update (binance.com/en/blog/421499), it's now unclear what they'll burn, but maybe something like: 80% of profit (up to 100m tokens, and nothing after that)
binance.com
14th BNB Burn | Quarterly Highlights and Insights from CZ | Binance Blog
14th BNB Burn | Quarterly Highlights and Insights from CZ
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SBF
@SBF_FTX
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@SBF_FTX
4) Binance burned $600m of BNB for Q1. That would roughly imply $750m of profit. If we assume $1B of revenue, given their $6T of volume in Q1, that implies an average fee rate of 0.016% or so.
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SBF
@SBF_FTX
5) So, TL;DR, with a factor of ~1.5 or so uncertainty: Binance, Q1 2021: a) $1B rev, $750m profit --> $4B rev, $3B profit run-rate b) Blended average fee rate ~0.016% on trades c) They're making it really clear that burn only goes until 100m tokens, but 60% of rev until then
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