Bitcoin Forum

CZ twitted earlier today about some guy mistakenly sending 800 BNB, that's worth $20K, to Binance smart chain and asked him for help.

https://i.ibb.co/X2CDZHy/BNB.png (https://imgbb.com/)
- https://twitter.com/cz_binance/status/1304700593441632257

The next burn will be in three days time but, as stated in the tweet, they'll remove 800 BNB there and use it to refund the guy who begged CZ.

What's your take on that?

I understand it's not a mineable coin but I still find it hard to believe that it's that easy to change BNB's supply. I mean, they should just stick to burning BNB's they originally planned. The 800 coins were supposed to be gone forever but with just one tweet, it's back! It's like bringing something back from the dead lol.

UPDATE:
More details have been announced and they call it the BNB Pioneer Burn Program https://www.binance.com/en/support/articles/7bcf4da5671d44a0a5118c2277773bb4
- credit to tvplus006

It is also hard decision  for them at the same time they want to help the persons who send BNB accidentally.

I see it the same since they will burn the coins but they doing it advance because of mistake of that persons so I will agree with this decision  if they do.

More people going to appreciate their action than criticizing it, because the amount lost is not too small for anyone and due to the lockdown more people knew the importance of money so this is decision has been taken with all these things in their mind in my opinion.I am not going to oppose it but still it goes against the real invention of decentralization.

Changpeng Zhao is a good boy, he becomes a millionaire thanks to a crypto community, so he feels the need to return it back to the community. But sometimes, it is against the idea of cryptocurrencies. Transactions should be immutable and you are responsible for your losses, not the bank, not the third side, right?

Lets get it straight, i am not a fan of BNB coin and i am not a big fan of CZ either, but if he could sort of issues regarding the exchange and even though it is not a conventional process of returning the coin i think it is a good cause as the coins sent by the user was burned and is not in circulation as per the tweet and if they are burning the coins and if he is willing to hold off 800 BNB to refund the user, in theory they burned the same amount of coins.

The problem arises if more people start taking this approach, the power of centralization exists  :D.

yes maybe that persons really need that balance and that's not small amount after all. its not change anything they are doing burn advance by the person that send the balance in wrong address. I like that idea of giving it back to the owners and I don't think some one will complain about it as long as it never change the motive of burning supply.

They don't have a clear plan for burning coins, I don't think there's anything wrong with that in my opinion, the Binance team just did a good thing, that's all.

I don't see this as a problem. I understand that these coins will be returned to the guy from the Fund, which are intended for quarterly burning. This means that 800 BNB less than planned will be burned next time, since these 800 BNB were actually burned now.

The coins that are stuck somewhere or gone should be counted as burnt already and returning those 800 coins to the guy from the upcoming burn does not make any difference but equates his mistake with a compensation as a 'donation' for his stupidity. This will be a lesson for him either way if CZ decides to return his BNB to him or not.

or maybe what CZ can do is just give some money to the guy out of his pockets, for the sake of good will. just dont get those coins from that address supposedly to be burned, the concept will be tainted and that will make people think that they can always do that the next time around someone made a mistake.
 hard lesson for the guy. lets see whats his action on this...

It's a good idea by CZ, I think they should reimburse the guy who lost his coins.

If the coins got burned he will not affect the ecosystem in any way by getting them back and it's going to be a great opportunity to show good will.

This action is humane.  I do not see anything wrong on reimbursing a person of his 800 BNB that is sent to the burning address by mistake.  The supply to be burned is unchanged because the guy's mistake of sending 800 BNB to the burning address makes up for it.

Let us not be happy on other's people mistake that will lead him to lose a huge amount.  Rather let us be appreciative on a good  action that enable that person to get his lost BNB back.

Then it will set a precedence, not just for Binance for any other burn token algorithm. And it will shows how powerful Binance and CZ. Don't forget about this one as well, Binance Considered Pushing for Bitcoin ‘Rollback’ Following $40 Million Hack (https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack). If he did do a rollback back then, it will be a wrong move for him. I sympathize with him, offering to help the guy, but the repercussions is big. If he wanted to show good will, give back $20k to the guy, that's it, instead of removing 800 BNB, that's just my opinion.

I also don't like the idea behind it, did he check the identification of the guy? it is for real and not trolling him? I agree with the OP, it's like CZ has God like power know to bring something from the dead (analogy). What if others make the same mistakes again? Will he do it, or just say "f**k" off, it's your mistake.

These are the things I am getting at. Those who are "okay" with CZ burning BNBs less the 800 that are supposed to gone permanently are underestimating the future impact of such action.

We are very critical when it comes to coins or tokens supply, from circulating to locked or to team holdings, but we're just fine if developers and owners can easily play with it?

To be honest, I'm not comfortable with this kind of refunding that CZ is planning to. And it added to the whole centralisation of crypto and damn, what powers CZ will have, wielding it in crypto space. It's a very dangerous, yes Binance is doing good for us, but for what? CZ he become one of the most powerful crypto figure, literally, if he will do this kind of move just to satisfy one customer of his. His tokens are meant to be burn, not to be salvage if anything goes wrong and this goes against the basic principle of token burning. Most crypto traders will be disappointed if he will do this.

Decentralized currencies should not have a supreme leader who can have this much power to just unilaterally decide to change the burn supply. Ethereum isn't as bad but I've always felt uncomfortable with Vitalik having outsized influence.

The amount of $ 20,000 is small for a CEO of a large trading platform like Binance and they know how to keep their image in the eyes of the community.
As far as I can see, the money was lost so let it go, just pay back $ 20,000 is okay.

Me as well, there's certain limitations in such kind of responsibilities,
If CZ can do that then who knows what possibilities that he can do in the future.

Question about refunding since that's really a huge amount of money to lose, balancing the situations and judging maybe very
hard, though it's him and his compassion to decide about this case.

Reversing transactions is possible but it is best to return the money to the person who lost the money and burn the wrongly deposited tokens. That would be better than the way he reversed the trade because people didn't like it.
He needs to take responsibility for his mistake whether it was accidental or intentional.

Crypto transactions are not reversible but here the user made deposit to the wrong address which result into permanent stuck that is why CZ wants to burn 800 tokens lesser than the tokens they have to and return the 800 to the user but at the end no one lost or gained from this changes but this shows the centralization of cryptos.

I mean, I guess its a noble to give this guy a refund, but at the end of the day, it comes down to the question if this is really a principled thing to do. They will "refund" this guy, but what will happen to the next one that makes the same mistake? I am pretty sure this is not the first time this thing happened with BNB, so what about refunding mistakes from the past? They opened a Pandora box with this decision.

A few days ago, there was a similar situation when a user transferred 1 million USDT tokens to the wrong address. And these USDT were returned to the user by Tether. https://www.somagnews.com/defi-user-who-lost-1-million-usdt-got-his-money-back/ And this practice will be solved in the future in a similar way. We must accept the reality that cryptocurrency is centralized, with the exception of BTC.

I mean on the one hand its obviously good that both these individuals were able to recover their money, and is is undoubted that these sort of situations will happen again the future. However IMO a crypto currency needs to be immutable in order to be purely permission-less and trust-less. Also given that we will most likely see state backed currencies ( CBDC) in the next few years what than would be the advantage of using CZ's coin over one by backed by the state.

But yea almost all coins are by and large centralized apart from BTC, but it is only because BTC is immutable that it is the only coin worth truly holding onto in the long run.


All this just reminds me of the whole Ether/ether classic fiasco from 2016 though.

It sure would be a better choice to pay him back with his own money but I guess he didn't want to take responsibility for the situation. He chose to make the system responsible and show himself as the generous boss. This is all well calculated. Next time this happens people won't ask him for money directly like they would if he paid that guy. 


Those who invest in BNB should know that it's a centralized token. You know what you're getting yourself into and that the coin will depend on future actions of CZ and Binance.

If Binance gets into the same trouble as Bithumb you'll be able to buy a bottle of vodka to drown your sorrows in with your whole BNB investment.

I would help that guy. I mean 20.000 $ dollars is a huge sum and could be worth 5 years of working, depending on where the guy is located in the world.
It would be a great sign that crypto is not only about greed and quick money but also about community.
On the other hand, CZ uses this as a marketing tool to present himself as a caring guy, while he is still working on making crypto more and more centralized by buying cmc and so on.

Why did you decide that it is not decentralized? The fact that a person is sitting on the other end of the wire and has the ability to send you tokens back does not mean that everything is completely contralatable. Do not forget that you primarily interact with people, which means that the human factor will always affect the processes that are taking place.

Sure the success of the coin depends on the success of Binance exchange and of CZ as the head but I doubt they had any idea that CZ will tweak the burning mechanisms that was already in place when the native BNB was announced.

People seems okay because 800 is just a small amount compared to the circulating and total supply. If this happened to be at least a million, I bet the reaction would be different.

Yes, I was wrong to assume that trading is reversible. Binance focuses on what they are. From the way they create Dapps on their platform (developers pay a sizable fee to generate tokens) shows they are going against the principles of cryptocurrency.
Cryptocurrency developers have also voiced their opposition to Binance's approach.
https://twitter.com/burn_the_state/status/1304995734354231296

the way they plan of burning the coin is already an act of manipulating the supply but whats shocking with that . they arent the only one that do this but others are also increasing the coins supply if not decreasing it .

why not use another coin to refund the guy if its really a big deal but im not sure if the guy will agree easily because he also think that bnb price can rose more once burning of supply happened or binance can pay more , estimate to what have the lost bnb have growned .

I think they should refuns it. Its only a personal help that knowing the guy made an honest mistake. We all knew that having a human error in cryptocurrency is not on the exchange fault but he should have conscience knowing that he already knew the reason. Misinformed is a bad thing and its really hurting to see that kind of scenario. I know CZ will refund it.

I suppose there was nothing wrong with refunding it. I mean, the man himself asked for help, and the issue was an honest mistake, no illegal actions were done, and seeing as CZ has the ability to return the man his funds plus nothing would really be lost with doing as such, why not? $20k is a huge amount no matter what, and simply ignoring someone you could've helped without much issue seems arrogant.
Well, if it were going to have a huge influence on BNB itself, naturally people would start talking. But on the other hand, if CZ were to tinker with it but no negative influence really happens to coin owners I doubt they'd actually take a stand.

It is these examples that we see with the return of BNB and USDT that show us that the cryptocurrency is not decentralized. I used to know and was sure that no transaction can be returned, now I see that I was wrong. If the transaction is canceled, we see that the cryptocurrency becomes similar to the national digital currency.

CZ is kind. If they were able to return the funds from the hacking on their exchange. This $20,000 isn't going to cost that much.
He's asking to gain the sentiment of the community and I commend him if he'll refund the poor guy who did the honest mistake.

burning is the main way to increase the price of coins in the market because the total supply becomes less and coins are becoming scarce on the market
As far as I know coins that have a little total supply will be easier to increase and I think BNB is doing the right thing

Let's hope when and if the guy gets refunded he doesn't go and dump it all and does at least something good with it. 800 BNB won't exactly crash the market if they are refunded and it will show Binance and CZ in a good light as well and not just as a money making machine. I got a little bit of BNB parked in savings at the moment to get some free BELLA, so hope BINANCE do more incentives like this for us hodlers and savers and hope the guy get's his 800 BNB back.

Decentralized finance isn't so decentralized when there are central authorities that can undo mistakes.

What smart contract is the sender sent to ? If the smart contract is on Binance's control, i think the coin will be able to be sent back to him.
But if the guy sent the coin to the burn address, even CZ won't be able to send the coin back to him.
CZ is humble and low profile, he asked the community about the decision instead deciding alone.

I think CZ will refund it. We already know how much money he is making and we could say that the loss funds can be attributed to their quarterly burning also. So it might be a good chance that the guy mistakenly send will be refunded. Its not that much for CZ anyways.

didnt you read the first post . it says it was send to binance chain but cz never said that it can be recovered so i assume that its not really recoverable even if we say that the smart/chain was owned by binance  . if the guy send the coin to other address that werent related to binance then the coin wont be returned to him . cz could have pay the guy straight but the reason why he ask the public is because maybe he was planning to send some of bnb that is suposed to be destined to burned .

Binance released a new announcement today: https://www.binance.com/en/support/articles/7bcf4da5671d44a0a5118c2277773bb4 according to which BNB coins will be returned to those who lost them when working with Binance Smart Chain. These refundable BNB coins will also be compensated from the amount that is subject to quarterly burning.

"Binance is introducing the BNB Pioneer Burn Program, a new initiative that aims to help eligible users who lose tokens as part of mistakes they made while trying out the newly-launched Binance Smart Chain. Under the BNB Pioneer Burn Program, Binance will cover users’ losses for accepted cases and count the lost tokens under our quarterly BNB token burn activities instead".

This announcement was to make official what we've been talking about here but with more details and specific conditions.

Even though one condition says "loss due to an honest mistake", there will always be people who will treat BNB as testnet coins since it's hard for Binance to verify "honesty". They will be refunded as long as they will meet other conditions. They have loads of BNBs to burn anyway and they can mint at will to refund "lost" pegged or wrapped tokens.

They're doing everything to increase user base right?

I think it's good on binance part that they went ahead and agreed to refund the amount to the person but then again if it is done for one person shouldn't it be done for all others as week ?

Talking in a humanic way, they should respond to the guy asking for help because 20k$ can change a life and it can also cause the death or the hunger of a whole family. Responding to my inner feelings as a human being, i'm up for the refund of the coins.
Professionally, i'm against that. The blockchain and the decentralisation means that we as humans can't have an effect on the blockchain, we have no right to misuse it and we aren't capable of doing so. If CZ has the right to remove a balance from the burn amount then he could even remove another amount for him and his friends too, this ain't a game either play your cards well or just get out of the cryptocurrency world. If that happens, we are not talking about decentralisation in the binance ecosystem.

I edited the main post to include the latest announcement from Binance. Try to follow the discussion next time so you won't look like spamming. Just two posts above you, tvplus006 already mentioned it and the answer to your question answer is there. 

The days that blockchain is meant for decentralization is over I suppose. Some companies today have privatized blockchain to use it in their own system.

When it comes to Binance blockchain, CZ has showed us once again that he controls it. He can do whatever the fuck he wants to BNB.

amount might be small but what is the point in decentralisation, it lost because of negligence by bnb holder
everyday there are many mistakes and lost fund is happening and no one cares much for that
just cz wants to create a good image of himself at this hard time and he wont keep doing that any further

I highly disagree with this decision. Would someone pay for mistakes that all of us made? When we lost Bitcoins, Ethers, and other cryptocurrencies? Why Binance is making from cryptocurrencies something that is common in banks? Oh, you made a wrong transaction? We will solve it! But, what happens when the bank starts to have a problem?  ;)

Yes, if they had already done it for one person, then they would obviously have done it for everyone in the future, unless there were some other considerations which they carefully scrutinized.

The founder of the Binance exchange has such a strong sense of growth that he tried to trigger a decentralized exchange but I think the exchange that is currently operating is still very good to use and still has a high volume so it is more cost-effective than having to change the exchange platform.