By any standards, Binance has had an extraordinary year. From a standing start it now regularly tops the exchange rankings for highest trade volumes and may be the best known and most influential crypto-exchange of them all, at least as far as traders in Europe and the US are concerned.
With domination achieved, Binance is applying a new fee structure, adhering to plans laid out in its original white-paper. And it is not good news for traders.
Users of the exchange receive large discounts on trading fees if they pay in Binance Coin (BNB). For the first year of trading these reductions amounted to fully half of the platform’s standard fees. This has now been halved for the second year of operations on the Binance platform, with the BNB-based trading discounts reduced from 50% to 25%.
However, whilst the utility of BNB ownership may have declined, Binance is still committed to other strategies which maintain the token’s inherent value. Under the exchange’s “Buyback & Burn” scheme, “20% of Binance’s profits each quarter are dedicated to buying back BNB and destroying them.” This will continue until half of all Binance coin has been systematically destroyed, “lowering the supply of BNB while demand continues to rise.”
Binance are also offering a new “Tiered Trading Fee Discount Program” which kicks in on the 21st July. Highest fees will be paid by users with a 0 BNB balance whose trading volume over the last 30 days is lower than 100 BTC. Greater volume and BNB balances will take users up a VIP scale: at the 8th VIP tier, trade makers will only be charged 0.02%.
If you want to breathe that rarefied air you may need to up your trading. Those fees are only offered to customers with BNB balances over 11,000 ($143,000 at current prices) and 30 day trading volumes surpassing 150,000 BTC (over $1 billion at current prices).