BinaryX has unveiled a new proposal that if voted upon, may have bullish consequences for its native token, BNX.
- BinaryX intended to strengthen its tokenomics with a proposed plan to slash its maximum supply by 74%. If passed, the move may have a positive impact on investor attraction and price.
BinaryX has announced a new proposal, which, if passed, could have a massive impact on the price of its native token, BNX.
According to BinaryX’s official announcement, the proposal seeks to introduce a token burn that will slash 74% of BNX’s maximum supply.
The project revealed that the proposal is part of its plan to improve the sustainability of its token supply while increasing its scarcity.
Potential impact of the BinaryX’s burn
At press time, BinaryX had a circulating supply of 372.3 million BNX tokens, which is a 17.73% of its maximum supply of 2.1 billion tokens.
If the proposal gets approved, the token will have a new maximum supply of $546 million BNB. For context, that would equate to a $1.1 price tag at maximum supply with its current market cap.
So, BinaryX would currently have a fully diluted market cap of $889.9 million at its press time price if all other factors remain unchanged.
Although there is no guarantee that the proposal will be passed, it is a highly probable outcome since all token holders will be allowed to vote.
If the new proposal is passed, the new maximum supply will limit the potential price dilution in the future. The scarcity factor may also play out in favor of BNX’s price action, which could rally higher as the market cap rises.
A sustained bullish trend for BNX?
BNX is one of the best performing cryptocurrencies of 2024. It reached a new YTD high of $1.67 earlier this week, a 501% rally in the last seven months.
Source: TradingView
BNX pulled off a 65% rally in the last seven days, signaling sustained investor interest. The return of bullish sentiment in the market did play a role in its robust bounce back.
But will we see some profit-taking after the recent rally?
It is possible that the recently announced proposal could be a disincentive for short-term profit-taking. Bullish prospects remain strong even if the price corrects in the short-term.
A lower maximum supply, courtesy of the proposed 74% token burn, should, in theory, be a price-positive factor. It may incentivize more accumulation and HODLing.
An alignment of these factors may lend fresh legs to BNX bulls, and support the likelihood of a parabolic extension.
Take a Survey: Chance to Win $500 USDT
Next: Ethereum ETF fee wars: Grayscale goes ‘for the jugular,’ drops Mini fees to 0.15%
Source