BNB (originally short for Binance Coin, now also representing the "Build and Build" ecosystem) is the native cryptocurrency that powers the Binance exchange and the broader BNB Chain ecosystem.
Launched in July 2017 through an Initial Coin Offering (ICO), it began as an ERC-20 token on Ethereum before migrating to Binance's proprietary blockchain infrastructure.
Core Use Cases
Gas Fees on BNB Chain: Just like ETH powers Ethereum, BNB acts as the network fuel to pay transaction and smart contract execution fees on the BNB Smart Chain (BSC), opBNB, and BNB Greenfield.Exchange Fee Discounts: Holding and using BNB on the Binance centralized exchange grants users discounted trading fees.
Token Launches & Staking: BNB holders can stake their coins in programs like Binance Launchpool to farm and earn allocations of new cryptocurrency tokens prior to listing.
On-Chain Governance & Staking: Validators and delegators stake BNB to secure the Proof-of-Staked-Authority (PoSA) network and vote on blockchain governance proposals.
Payments: Used across decentralized finance (DeFi), NFT marketplaces, and supported third-party merchants for purchases and travel bookings.
Tokenomics & Burn Mechanism
BNB launched with a maximum initial supply of 200 million tokens. It employs an automated quarterly Auto-Burn mechanism (along with real-time transaction fee burning) that permanently destroys coins. The objective of the protocol is to continuously reduce the total circulating supply until only 100 million BNB remain, introducing deflationary pressure.
Are you looking at BNB from an investment perspective, or do you want to understand how it works technically within decentralized apps (dApps)?
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