BNB Chain has launched a significant $100 million liquidity incentive program, aiming to boost liquidity for projects within its ecosystem on centralized exchanges (CEXs). This initiative, announced on March 24, 2024, will allocate rewards primarily in the form of BNB tokens to projects that successfully list on any of 11 major CEXs specified by the blockchain.
The core objective of the program is to enhance liquidity within the BNB Chain ecosystem and foster the growth of projects by incentivizing exchanges to list BNB Chain-based tokens. This move is expected to expand the reach and influence of BNB Chain in the growing crypto market.
The $100 million will be distributed across projects that meet specific requirements, including a $5 million market capitalization and $1 million in daily trading volume. The program will run for a three-month trial period, executed on a first-come, first-served basis.
Some of the largest rewards — amounting to $500,000 in permanent liquidity — are reserved for projects that list on major exchanges like Binance and Coinbase.
In addition to offering liquidity rewards, BNB Chain will also offer purchases of project tokens in certain cases to ensure two-sided liquidity, further incentivizing these exchanges to list native BNB Chain projects.
Prior to this larger initiative, BNB Chain had already launched two smaller liquidity incentive programs, allocating $4.4 million in February and March. These programs were designed to incentivize the listing of memecoins and other projects within its ecosystem on centralized exchanges.
Despite its ambitious new liquidity program, BNB Chain still lags behind other blockchain networks in terms of total value locked (TVL). With a TVL of $5.4 billion, it ranks fourth among blockchain platforms, trailing behind Ethereum ($46 billion) and Solana ($7 billion) in TVL, according to data from DefiLlama.
BNB Chain remains closely affiliated with Binance, the world’s largest cryptocurrency exchange. As the blockchain seeks to increase its influence, the latest liquidity incentives aim to bridge the gap between the platform’s current TVL and that of its leading competitors.
In March, The Wall Street Journal reported that entities affiliated with US President Donald Trump were in talks to acquire Binance.US, the American arm of Binance. However, Changpeng “CZ” Zhao, the former CEO of Binance, has denied many of the claims in the report, including the suggestion that a deal might involve Trump pardoning Zhao in exchange for the acquisition.
In 2023, Binance reached a $4.3 billion settlement with US authorities over violations of the Bank Secrecy Act, and Zhao pleaded guilty to a charge related to shortcomings in the exchange’s Anti-Money Laundering (AML) program.
With these developments, BNB Chain’s new liquidity program is part of a broader strategy to enhance its ecosystem’s growth while navigating a complex regulatory landscape.
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