#TokenReserve

Why is token reserve important? 

1-A healthy reserve can build investor confidence.

2-It can indicate a commitment to the project's long-term sustainability.

What is Binance's Proof-of-Reserves (PoR) system?

1-Binance's PoR system helps users verify the amount of tokens the company holds. 

2-The system uses a cryptographic tool called a Merkle Tree to consolidate large amounts of data into a single hash. 

3-The PoR system was launched after the FTX collapse in November 2022 to restore trust in the crypto industry. 

4-Binance open-sourced the code for the PoR system to help other exchanges improve their own PoR mechanisms.