The trading competition by Binance is an intriguing way to get more people acquainted with the KAVA and HARD assets.
Leading cryptocurrency exchange Binance is hosting an International Women’s Month contest with $50,000 in prizes. As part of the giveaway, the prizes pertain to KAVA and HARD, two up-and-coming DeFi assets. The trading competition will end the day before Kava’s mainnet launch, which can significantly impact the KAVA price.
Binance’s $50,000 Trading Competition
It is not uncommon to see Binance provide trading competition to its users, as the exchange’s team does so regularly. This particular competition pertains to International Women’s Month, a cause that everyone can relate to. The new Collect & Win promo will help distribute KAVA and HARD tokens to participants, rewarding a pool of $50,000 in total. Participants have to collect four International Women’s Month-related cards to unlock their shot at a share of the prize pool.
The rewards are split into three lots, with prizes being issued to as many participants as possible. Users can find more details on the exact distribution in this blog post on Binance.com. Participants will need to engage in KAVA/USDT or HARD/USDT trading and commit at least 100 USDT on spot and margin trading pairs. Doing so allows them to unlock a random card. A higher degree of activity will increase one’s chances of completing the set.
Having Binance’s support in this trading competition confirms the exchange’s positive approach toward both Kava and Hard Protocol. Both groups have been working together for months, as KAVA’s technology has been integrated directly into Binance’s ecosystem a while ago supporting DeFi for Binance users. For centralized exchanges – either big or small – it will become pertinent to support DeFi protocols natively, instead of just listing new tokens. The ongoing partnership between Binance and Kava Labs shows both parties can benefit from such an approach.
As this competition runs until March 23, 11:59 PM UTC, the event will end the day before Kava is slated to launch the next major software upgrade on its mainnet. That launch makes a crucial milestone for the DeFi protocol, which is already the most-trusted option for institutional investors worldwide. The mainnet launch also comes at the perfect time for investors looking to utilize the borrow functionality. This will enable users with options to hold their digital assets and avoid paying capital gains.
Potential KAVA Price Impact
The trading competition by Binance is an intriguing way to get more people acquainted with the KAVA and HARD assets. As Kava’s major mainnet upgrade rolls out the day after this trading competition ends, it is likely to assume there will be some significant price action for both tokens. Binance will issue the winnings within two weeks after the competition ends, yet many people will see the benefits of Kava’s money-making solutions before that happens.
The trading competition will also directly influence the price of KAVA and HARD. Traders are incentivized to keep trading multitudes of $100 in USDT to collect all of the cards. Binance has four trading pairs – ranked by volume – in the top 7 for HARD Protocol and the top trading pairs for KAVA. As all of this trading action intensifies, the current prices of KAVA– $6.37 – and HARD– $2.69 – may not last for long. Coingecko recorded new all-time highs for both pairs in recent days, yet it is plausible to assume traders will break those again before this competition ends.
Moreover, the action may not stop there, as there is the next Kava mainnet release to look forward to. It will introduce some significant changes for Kava itself and include the HARD Protocol V2 upgrade enabling the borrow side features. Both of these developments show the evolution of DeFi, lending, and Money Markets and why supporting assets across different blockchains is essential.
Crypto Newcomer Explodes After Abrupt Altcoin Listing on Binance
A small-cap altcoin is shooting into the stratosphere after earning support from the global crypto exchange Binance.
The governance token Tranchess (CHESS) officially began trading today.
News of the coin’s listing triggered a 185% rise in the price of the asset – from $2.77 to $7.91. Its value has since settled to $5.09 at time of publishing.
CHESS is listed in Binance’s Innovation Zone, a dedicated trading area where users can buy and sell newer tokens that are likely to have higher volatility and pose a higher risk to traders.
According to Binance Research,
“Tranchess is a yield-enhancing asset tracker with varied risk-return solutions on Binance Smart Chain (BSC), which consists of 3 tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS.
The platform offers various features including a DEX (Tranchess Swap), money markets (Primary Market), staking, and network governance.”
Tranchess recently raised $1.5 million from Binance Labs, Three Arrows Capital, and other crypto venture firms.
Binance proposes a real-time token burning mechanism to boost BNB value
- Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
- BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.
Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.
According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.
For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.
Details of Binance BEP-95 token burning mechanism
BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.
However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.
Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.
Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose.
BNB price action
BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.
New proposal aims to raise Binance Coin value by burning BSC fees
Amid the ongoing rally of Binance’s native token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have proposed more measures to maintain the token’s deflationary model and improve its intrinsic value.
According to a new Binance Evolution Protocol, BEP-95, BSC developers are considering introducing a real-time burning mechanism for a portion of gas fees to reduce BNB supply and drive BNB value higher by increasing the demand. According to the BEP, BNB holders will decide how to dispatch the BSC gas reward.
Releasing the proposal on Friday, BSC developers noted that the new BEP might decrease the total amount of BNB that validators and delegators obtain from staking. The burning mechanism will be enabled by introducing governable parameters for two system smart contracts for collecting gas fees.
Created by Binance in 2017, BNB is a deflationary token by design, meaning that Binance burns a percentage of the BNB supply every three months to maintain the token’s value. Binance will stop burning BNB once 50% of the initial supply has been burnt and only 100,000,000 BNB remain.
The latest BNB token burn took place last Monday, with Binance burning 1,335,888 BNB ($640 million) in its 17th quarterly burn.
The proposal comes amid BNB seeing a major rally recently, with the token breaking above $500 on Wednesday. At the time of writing, BNB is the third-largest cryptocurrency by market capitalization after Bitcoin (BTC) and Ether (ETH). The token is trading at $495, up around 44% over the past 30 days. BNB’s all-time high was recorded in May 2021, with the token surging to as high as $686, according to CoinGecko.
The latest BIP, which occurred in August, is similar to a new transaction fee mechanism implemented for Ethereum’s London upgrade. According to Etherchain, the current average ETH burn rate amounts to 3.76 ETH or $15,448 per minute.