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Binance Coin (BNB) – A Detailed Overview
Binance Coin (BNB) is the native cryptocurrency of Binance, one of the largest and most influential cryptocurrency exchanges in the world. It was created in July 2017 during Binance’s Initial Coin Offering (ICO) as an ERC-20 token on the Ethereum blockchain. However, in 2019, BNB transitioned to its own blockchain, the Binance Chain. It now plays a crucial role in the Binance ecosystem.
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Core Features of BNB
1. Utility Token
BNB serves as a multi-purpose utility token on the Binance platform, offering various use cases including:
Trading Fee Discounts: Users can pay trading fees on Binance with BNB and enjoy significant discounts.
Payment for Services: Many merchants and platforms accept BNB as a form of payment.
Staking & DeFi: BNB is widely used in staking and decentralized finance (DeFi) protocols across the Binance Smart Chain (BSC).
2. Burn Mechanism
Binance implements a quarterly token burn mechanism to reduce BNB’s total supply, making it deflationary. This process permanently removes a portion of BNB from circulation, increasing its scarcity and value.
3. **Binance Smart Chain (B