1) Some thoughts on BNB's most recent burn:
Conversation
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)
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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.
Replying to
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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Nobody can really guess their revenue now.
That's why they implemented the accelerated burn in Q4 2020.
"The current accelerated burn would put the trajectory to be around 5-8 years to finish the 100 million BNB".
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Binance use 20% profit to burn the BNB, so the profit should be $30B instead of &750M ?
