Introduction
BNB (Binance Coin) is a cryptocurrency originally launched by Binance — one of the world’s largest cryptocurrency exchanges — in 2017. Over time, it has evolved from a simple utility token for fee discounts into the native digital asset of the BNB Chain ecosystem, powering decentralized applications, decentralized finance (DeFi), smart contracts, and more. �
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History and Background
BNB was first introduced through an Initial Coin Offering (ICO) held from June 26 to July 3, 2017, shortly before Binance officially opened its crypto exchange. During the ICO, BNB was sold at roughly 0.10 USD per coin, with early investors able to purchase tokens using ETH (Ethereum) or BTC (Bitcoin). �
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Originally, BNB was issued as an ERC-20 token on the Ethereum blockchain, but in 2019 Binance launched its own blockchain infrastructure, and BNB was migrated to become the native coin of the new Binance Chain ecosystem. �
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Binance later expanded this infrastructure into the BNB Chain, consolidating multiple connected networks under one umbrella and promoting a more decentralized, community-oriented model of development. �
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Tokenomics and Supply
At launch, BNB had a total fixed supply of 200 million coins. However, Binance implemented a deflationary “coin burn” mechanism designed to reduce the circulating supply over time. These burns occur quarterly, where Binance buys back and permanently destroys BNB tokens based on trading volume and profits, with the long-term target of reducing total supply to 100 million BNB. �
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BNB Chain: Ecosystem and Infrastructure
BNB is the native cryptocurrency of the BNB Chain ecosystem, which includes:
BNB Smart Chain (BSC): An EVM-compatible blockchain that supports smart contracts and decentralized applications (DApps).
opBNB: A Layer-2 scaling solution that improves transaction speed and cost while remaining connected to the main chain.
BNB Greenfield: A decentralized storage network for managing data and content across the ecosystem. �
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As the native token, BNB is essential for transaction fees, smart contract deployment, and network security on BNB Chain. �
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Main Use Cases of BNB
BNB’s utility has expanded far beyond simple trading fee discounts:
1. Trading Fees on Binance
BNB can be used to pay for trading fees on the Binance exchange (spot, margin, and futures), offering users discounts when fees are paid in BNB. �
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2. Transaction Fees (Gas)
On the BNB Chain, BNB is used as the gas token — required to process transactions and execute smart contracts across decentralized applications. �
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3. Staking & Network Security
Holders can stake BNB to support network security. Validators and delegators receive rewards for participation, and holders can participate in governance by voting on key proposals affecting the network’s future. �
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4. Binance Launchpad & Launchpool
BNB holders often gain early access to new project tokens through Binance’s Launchpad and Launchpool platforms by staking or holding BNB. �
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5. Real-World Payments
BNB is increasingly accepted for real-world payments, including online purchases, travel bookings, and merchant transactions via platforms like Binance Pay and third-party payment gateways. �
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6. DeFi and NFT Use
BNB is widely used in decentralized finance (DeFi) protocols and NFT marketplaces on BNB Chain, where users can earn yield, provide liquidity, trade assets, or mint and purchase NFTs. �
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Technical Features
BNB Chain uses a Proof of Staked Authority (PoSA) consensus mechanism, combining elements of Proof of Stake and Proof of Authority, which enables lower fees and fast block times while maintaining security. �
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BNB Chain is also fully compatible with the Ethereum Virtual Machine (EVM), meaning Ethereum-based smart contracts and tools can easily migrate to or operate on BNB Chain. �
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Deflationary Mechanism: BNB Burns
One of BNB’s defining economic features is its burn mechanism. Binance uses a portion of profits each quarter to buy back and permanently destroy BNB tokens, reducing overall supply and increasing scarcity over time — a process expected to continue until only 100 million BNB remain. �
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Ecosystem Growth and Adoption
With its broad utility, low fees, and strong ecosystem support, BNB has become one of the largest cryptocurrencies by market capitalization, widely integrated across exchanges, DeFi protocols, payments, and financial services. �
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