Binance’s CZ and Ethereum’s Vitalik have reached an agreement on a fresh plan as BNB remains static.

Binance CEO CZ agreed with Vitalik Buterin that Centralized Exchanges (CEXs) must offer public evidence of consumer safety. Of course, CZ was the first to promote the Proof-of-Reserves concept in response to the tragedy that befell FTX consumers, with numerous exchanges adopting the methodology.

However, Ethereum’s [ETH] co-founder proposed that the concept be modified, and CZ confirmed that the idea could be implemented by the exchange team.


I don’t understand all the equations in there either. Our team says we will implement it and make it open-source, for the industry.

— CZ 🔶 Binance (@cz_binance) November 19, 2022

Get ready to prove solvency

Vitalik, in his post published via HackMD, noted that it was more important for exchanges to prove solvency than sticking with reserves data alone. According to the ETH founder, it was better for the crypto sector to have its own method instead of depending on fiat-backed systems.

Defending his position, he referred to the ability of zk-SNARKs to help with the design, as the cryptographic technology could provide robustness and privacy to the ecosystem. Vitalik also noted that the system could drive centralized exchanges into becoming non-custodial platforms. He said,

“In the future, we may also see cryptographically ‘constrained’ CEXes where user funds are held in something like a validium smart contract. We may also see half-custodial exchanges where we trust them with fiat but not cryptocurrency.”

Stalemate in Binance Coin kingdom

Regardless of the development, Binance Coin [BNB] preferred to remain at a standstill. At press time, the exchange coin was trading at $270, according to data by Santiment. This price represented a 0.40% decline in the last 24 hours.

However, BNB’s development activity did not react to the update immediately as it also hung around the same spot since 14 November. At 0.05, the development activity value showed that the Binance chain had not seen major upgrades recently.

BNB price and development activity

Source: Santiment

In addition, the 24-hour active addresses seemed in unison with the abovementioned metrics. According to Santiment, the on-chain status of BNB’s active addresses was 3874. As of this writing, the count was extremely close to the records of 18 November.

Although it was a decline, the status implied that the unique deposit on the BNB chain had mildly decreased. With the one-day circulation in a similar position at 106,000, addresses on the chain also resorted to fewer transactions.

BNB active addresses and circulation

Source: Santiment

As for its condition in the derivatives market, BNB was not in a spectacular position. This was because of the Binance funding rate which had decreased to -0.004% at press time. This meant that futures and options traders had not reignited their interest in the coin. Hence, it would also result in low volumes in the market.

Despite the stagnant position of BNB, Vitalik reiterated the long-term objective was for CEXes to function in a non-custodial manner. CZ agreed in accordance.

BNB Binance funding rate

Source: Santiment

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