Binance founder Changpeng Zhao, also known as CZ, is planning to donate over $1 million in BNB tokens to victims of meme coin price crashes. CZ is seeking advice from the BNB community on the best way to distribute the funds, considering options such as making an outright donation to a non-profit, burning the tokens, or adding them to a liquidity pool.
In a post on X (formerly Twitter), CZ confirmed that donations for victims of Test (TST) and BROCCOLI meme coins had exceeded $1 million. CZ donated $100K (150 BNB) from the pool, inspired by a university student’s contributions to victims of the failed Libra project. He emphasized that he will not keep any of the BNB received and will rely on community input to determine the best course of action.
While some community members are advocating for a donation to a non-profit organization, CZ insists that the charity must be crypto-enabled and have transparent mechanisms for fund distribution. He is considering a hybrid approach, which could involve donating part of the funds to a non-profit and possibly burning some tokens to increase asset values. CZ also mentioned the possibility of adding the funds to a liquidity pool, which he believes could indirectly benefit the community.
Despite some support for airdrops as a distribution method, CZ sees challenges in implementing them, particularly in selecting eligible recipients and satisfying the community’s expectations. He anticipates a controversial debate among community members if airdrops are considered as an option for distributing the donated BNB tokens. Ultimately, CZ is committed to finding a transparent and effective way to distribute the funds to victims of meme coin price crashes, taking into account the input and preferences of the BNB community.
