CZ's $1M BNB Donation: Community Input Sought
Binance founder Changpeng Zhao (CZ) is seeking community input on how to best distribute over $1 million in BNB tokens to those affected by recent meme coin price crashes. While a donation to a reputable non-profit is under consideration, CZ is exploring alternative options such as burning the tokens or adding them to a liquidity pool.
CZ to Donate $1 Million+ in BNB
CZ announced on X (formerly Twitter) that donations for victims of the TST and BROCCOLI meme coin collapses have exceeded $1 million. He has already donated $100,000 (150 BNB), building on a university student's earlier donation for Libra project victims. CZ emphasized that he will not retain any of the received BNB and is committed to community-driven decision making on how the funds are allocated.
Direct individual donations have been ruled out due to verification challenges. Instead, CZ prioritizes a community-focused approach, with many suggesting a donation to a non-profit. However, transparency and crypto-enabled tracking mechanisms are paramount for CZ.
"My requirement for charity is that the receiving organization has to be crypto-enabled, and tracking must be allowed to the end beneficiary," CZ stated.
Exploring a Hybrid Approach
CZ is considering a hybrid approach. A portion could go to a transparent non-profit, while other options, like burning the BNB to potentially increase value or adding it to a liquidity pool, are also on the table. CZ indicated a preference for the liquidity pool approach following successful initial experiments.
"I don’t care if funds on this address make or lose money," CZ said regarding the liquidity pool. "I think this is an indirect way to give back to our community too."
While airdrops received some support, CZ notes the significant logistical challenges and potential for community disagreements in selecting recipients.
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Disclaimer: This information is for educational purposes only and should not be considered financial advice. Conduct thorough research before making any investment decisions.