Quote from: Bonanzacoin on October 26, 2017, 05:22:11 PM

Quote from: raindropdroptop on October 26, 2017, 04:51:28 PM

Quote from: Cryptoupp on October 24, 2017, 07:50:58 AM

Quote from: Bonanzacoin on October 23, 2017, 04:04:14 PM

Quote from: Cryptoupp on October 23, 2017, 03:54:34 PM

Is the exchange profit split between the Binance holders?

not even remotely. Binance sells all their collected BNB on the market. So, really there is not even much discount on fees.

Thanks for your reply!

His reply was incorrect. Binance distributes 20% of profit to BNB holders through buy & burn. 20% of profit in Q3 was $1.5m.

How to realize your share of the profit:
1) I start Q3 with 0.01% of total BNB supply (20k BNB)
2) I slowly sell 100 BNB throughout the quarter to receive $150
3) Traders are buying millions of BNB and sending it to Binance to pay fees
4) Binance burns 1m of the BNB fees ($1.5m worth), and supply is reduced to 199m BNB
5) I end Q3 with 0.01% of total BNB supply (19.9k BNB) + $150

If they sent the $1.5m as dividends instead, I would have ended the quarter with 0.01% of total supply + $150 either way.

This works specificly well when u bought over $2...

Yeah. If you buy the top of a big pump then the price drops below your entry, you'll be at an unrealized loss, regardless of if the coin uses dividends or buy & burn.

In that situation: If the dividends or buy & burn grow large enough, they would lower your average cost per % of the supply.