BNB (Binance Coin) is the native cryptocurrency of Binance, one of the largest cryptocurrency exchanges in the world. Originally launched as an ERC-20 token on the Ethereum network in 2017, BNB became a native token of Binance Chain, the blockchain developed by Binance itself, in 2019.
BNB has a number of uses within the Binance ecosystem, including:
1. Transaction Fees: Binance users can pay transaction fees with BNB, often at a discount, which encourages the use of the currency within the platform.
2. Token Launches: Binance uses BNB to participate in its initial token offerings (IEOs), with the Binance Launchpad. Users who hold BNB can obtain exclusive tokens through these offerings.
3. Payments: In addition to being used within Binance, BNB is also accepted as a form of payment on various services and platforms, including companies that accept cryptocurrencies.
4. Governance: Binance has also implemented governance features for BNB, allowing holders of the coin to participate in decisions related to the evolution of the Binance Chain platform.
In addition to its use within the platform, BNB is widely traded on several exchanges and has been adopted as one of the top cryptocurrencies in terms of market capitalization. Its token “burn” model, in which Binance periodically destroys a quantity of BNB to reduce the supply and potentially increase its value, also contributes to its popularity.
BNB is one of the most valuable cryptocurrencies and is often seen as a utility coin due to its multifaceted uses.
