BNB Chain recently announced significant asset withdrawals and plans for expansion to institutional investors. Let's delve deeper.
Token Burns
The total assets withdrawn amounted to 1,595,599 BNB, equivalent to $1.024 billion at the time of the burn event. Following this, the total supply of BNB decreased to 139.3 million.
The destruction of coins is carried out through the Auto-Burn mechanism, which aims to reduce the total supply to 100 million BNB. The amount burned each quarter depends on the price of BNB and the number of blocks generated on the network during that period.
Creation of BNB Treasury
Venture capital firm YZi Labs, linked to ex-Binance CEO Changpeng Zhao, and 10X Capital are working together to create a BNB Treasury Company. In the future, shares of this company are planned to be listed on a U.S. stock exchange.
The initiative aims to provide both retail and institutional investors in the US with access to the BNB Chain ecosystem. According to representatives of 10X Capital, such users currently have limited opportunities to invest in BNB.
Institutional Opportunities in DeFi
The project will be developed by a team of top managers, including Galaxy Digital co-founder David Namdar and former IT director of investment fund CalPERS Russell Reed. 10X Capital will act as the asset manager for the new company.
Ella Zhang, head of YZi Labs, noted that BNB Chain is one of the most widely used blockchain ecosystems. Increased institutional participation will benefit a wide range of users.
The funding round for BNB Treasury is expected to close in the coming weeks, potentially altering access to DeFi for institutional investors dramatically.
