Victor Ugochukwu · Oct 20, 2020 . 6min read
BNB Pioneer Burn program, Binance to help BSC users cover their losses
Binance says it will cover users’ losses for accepted cases and count the lost tokens under our quarterly BNB token burn activities
By Victor Ugochukwu · Sep 18, 2020 . 6min read
Binance will be absolving the losses of users who transferred funds mistakenly to smart contracts on the recently launched Binance Smart Chain through a new BNB Pioneer Burn Program.
Announcing the new BNB Pioneer Burn Program, Binance says it will cover users’ losses for accepted cases and count the lost tokens under our quarterly BNB token burn activities. This new decision most likely emanated from a tweet from CZ, Binance CEO some days. He tweeted that a user mistakenly sent 800 BNB worth $20,000 to smart contract address on Binance Smart Chain asking if Binance should help the user recover it:
A guy just sent 800 #BNB ($20,000) to a smart contract address by mistake on Binance Smart Chain. It is effectively burned (permanently stuck). He’s begging for our help now. We could make him whole by deducting that amount from the next burn. Should we do it?
Consequently, this drew mixed in the industry where some were for and others voiced their displeasure towards the idea. While many cheered CZ on encouraging him to go ahead, some others criticized him. Those who criticized cited the Ethos of decentralization and irreversibility of smart contract transactions. A user tweeted a response to CZ,
aka code is not law – its cz’s fiat decree
How the BNB Pioneer Burn Program works and its Eligibility?
As per the announcement, the lost token must be any of BNB or wrappped or even tokens pegged all on Binance Smart Chain. Additionally, the lost tokens must have been transferred to BEP20 contract addresses that are verified on bscscan.com. Finally on eligibility, the lost amount must be greater than $1,000 but less than projected quarterly BNB burn amount.
If a user meets these criteria, then he/she must submit a ticket to Binance for them to investigate their claims. Then, Binance may then mint extra corresponding tokens and send the tokens back to the originating address of the case. This is for the pegged tokens in the BNB Pioneer Burn Program. For BNB, Binance will send BNB to the originating address of the case. The number will be booked and counted as part of the total BNB burned in the next quarterly burn. In both scenarios, Binance will send tokens to the users who lost theirs but will deduct network fees.
Of course, one must not forget the recent case where Tether, the stablecoin helped user(s) to recover $1 million mistakenly sent to a wrong contract. Looks like CZ’s tweet and the BNB Pioneer Burn Program took its impetus from the Tether case.
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