What is BNB?*
BNB is a utility token that was initially based on the Ethereum blockchain (ERC-20) but has since migrated to the Binance Smart Chain (BEP-20). Its primary purpose is to facilitate various use cases within the Binance ecosystem.
*Use Cases*
1. *Trading Fee Discounts*: Using BNB to pay for trading fees on the Binance exchange offers a discount, which can range from 25% to 50% depending on the user's VIP level.
2. *Listing Fees*: Projects that want to list their tokens on the Binance exchange must pay a listing fee in BNB.
3. *Binance Smart Chain Gas*: BNB is used to pay for transaction fees (gas) on the Binance Smart Chain.
4. *Staking and Validation*: BNB holders can participate in the validation process on the Binance Smart Chain by staking their tokens.
5. *Payment and Remittances*: BNB can be used for payment and remittance services, such as buying virtual gifts or paying for online services.
6. *Travel Booking*: BNB can be used to book travel arrangements, such as flights and hotels, through partners like TravelByBit.
7. *Charity Donations*: The Binance Charity Foundation accepts BNB donations to support various social causes.
*Tokenomics*
- *Total Supply*: 200 million BNB
- *Circulating Supply*: Approximately 150 million BNB (as of 2022)
- *Token Burn*: Binance conducts quarterly token burns, where a portion of the BNB tokens are destroyed, to reduce the total supply and increase the value of the remaining tokens.
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