The Fuel Of The Binance Ecosystem.

BNB

+2.55%

806USDT

  • BNB powers the Binance ecosystem and is the native asset of the Binance Chain. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for a fee reduction on the Binance exchange, its scope was extended over the years.

  • BNB powers the Binance Chain as its native chain token. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.

  • BNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from “go-ethereum”. It supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”), which incorporates elements from both Proof of Stake and Proof of Authority. BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators.

  • Besides its on-chain functions, BNB has multiple additional use-cases such as fee discounts on multiple exchanges (e.g., Binance.com), payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.

  • At the core of the economics of BNB, there is a burn mechanism leading to period reductions in its total supply (~ every three months). From its initial maximum supply of 200 million, burns are expected to continue until the supply reaches 100 million.

1. What is BNB?

BNB was initially issued as an asset to function within the Binance website and its broader ecosystem. At its core, BNB has been used for the following functions:

  • Exchange fee discount: since the launch of Binance, transaction fees on the exchange paid in BNB have been subject to a discount. Initially, BNB provided a 50% discount on transaction fees, but it was later reduced to 25% as per the original whitepaper.

  • Unique participation rights: BNB can be used for additional services on the exchange, such as participation rights to Launchpad events (IEOs) and tickets for community listing voting rights.

  • Quote currency on Binance: BNB has been used as an asset for trading cryptocurrencies on Binance. It has been one of the first quote assets on the exchange, alongside stablecoins (e.g., USDT), BTC, and ETH.

  • Third-party uses: BNB can be used on multiple platforms and services that are independently run by global companies. Its third party set of use-cases ranges from booking websites to financial services. For the full breakdown, please visit the BNB use-cases page.

Following the successful launch of Binance Chain in May 2018, BNB has pivoted to become the native asset of Binance Chain, working similarly to ether (ETH) for the Ethereum blockchain.

  • BNB powers the Binance Chain as its native chain token. Some of its on-chain use-cases related to the Binance DEX, and its function as gas fees on the Binance Chain. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.

  • In addition, the newly launched Binance Smart Chain introduces several additional use-cases for BNB. Binance Smart Chain is the EVM-compatible side-chain of Binance Chain, where BNB operates as the ether-equivalent on Ethereum and is thus used to pay for gas fees (e.g., for transactions, for smart-contract execution).