Main topics of the post:
Binance introduces the Locked Addresses and Platform Concentration Indicator features to enhance token transparency and help users make more informed decisions.
These features make it easier for users to assess the distribution of tokens and the risks of volatility directly on the Binance interface.
The launch is part of Binance's overall effort to set industry standards for token transparency and user empowerment.
In the cryptocurrency markets, transparent and reliable information about the tokens users are trading is crucial for making informed decisions. Tokenomics can be complex, and users need easy-to-understand signals to assess risks and opportunities. At Binance, we are committed to providing tools that help you trade with confidence and stay informed.
That's why we are introducing two new features: Locked Addresses and Platform Concentration Indicator, developed to provide our users with greater visibility into token supply dynamics and potential volatility risks. These additions are part of our effort towards transparency of token information, aimed at establishing new standards for how the industry presents essential data.
Locked Addresses: clearer information about the circulating supply
As they enter the market, many cryptocurrency projects choose to lock a portion of their tokens for strategic reasons, such as encouraging long-term commitment from team members, investors, or the community. These tokens are held in locked addresses and remain inaccessible until a predetermined 'vesting' period ends.
Our new Locked Addresses feature makes these important supply details visible directly on the Binance platform. Now, users can check if a portion of a project's token supply is actually locked, track the amount involved, and include this in their trading decisions.
This visibility is essential. The circulating supply of a project is one of the most important data points to understand price dynamics. By revealing information about locked addresses, we allow users to separate circulating tokens from those that are inaccessible, helping to avoid misinterpretations about market capitalization or liquidity.
You will find this information by accessing the Token Information tab and hovering over Circulating Supply. From there, you can examine how locked addresses relate to the overall token distribution. It's a simple tool with powerful implications: better data for users, greater accountability for projects, and a more transparent market overall.
Platform Concentration Indicator: a signal for volatility risk
Another question that traders often ask, or definitely should ask, is: what is the concentration of this token? If a few holders control most of the supply, the risk of sudden price movements can be much higher. But until now, there hasn't been an easy way to measure this concentration in one place.
With our new Platform Concentration Indicator, users get a snapshot of a token's ownership distribution using a weighted average formula that focuses on concentration on the Binance platform. We combine and standardize this data into a score from 0 to 100. A higher score means greater concentration, suggesting that a small number of holders may have a significant influence on the token's price, while a lower score indicates a broader distribution and potentially lower volatility risk.
The Platform Concentration Indicator measures the degree of market concentration by assessing two key factors: the distribution of Binance user holdings and Binance's share of the token's circulating supply. When a small number of users hold a relatively large portion of the token and/or when Binance's total holdings represent a considerable share of the token's circulating supply, the Platform Concentration Indicator will be high. Both components are standardized to a common scale and combined with different weights to produce an final score that reflects the level of concentration on the Binance platform.
Users can view the score and use it as one of several factors for investment decision-making. It's not about predicting the future but providing users with a better understanding of the landscape they are navigating.
A greater commitment to transparency
These new features are not isolated updates. They are part of a multi-step effort to raise the level of token transparency across the industry. Since 2024, Binance has been continuously adding tools that offer users more detailed information without requiring them to leave the platform.
Check out what we have presented so far:
Token unlock and vesting schedules (September 2024): we integrated data from CoinMarketCap to enable users to view upcoming token unlocks and vesting schedules directly on Binance.
Token methodology update (February 2025): we renewed the way we calculate and display market capitalization and circulating supply, taking unlock schedules into account for greater accuracy.
Financial reports (April 2025): we began including links to project financial reports directly on token information pages, offering users an even more comprehensive view.
Final considerations
As the cryptocurrency sector becomes more sophisticated, so do the tools that users rely on to interact with it. At Binance, we believe that transparent tokenomics is essential for building trust, encouraging balanced market behavior, and reducing the risk of misinformation or manipulation.
Yi He, Co-founder of Binance, simplified it by commenting: 'We clearly heard from the community that users want more transparency and tools to better understand the tokens they are trading... Binance is not only providing more information about tokens but also establishing new standards to enhance market transparency.'
Our goal is not just to inform, but to educate and empower. The more users know how a token works — who the holders are, when it is unlocked, how it circulates — the better decisions they can make. And the more projects know that transparency is expected, the better our entire ecosystem becomes.
We are proud to lead in this commitment and appreciate our users' feedback as we continue to improve. And, as always, your opinion helps us develop an ever-better industry.