$BNB (abbreviated as *Binance Coin*) is the official **utility token** of the Binance exchange, launched in 2017. Initially, BNB operated on Ethereum (ERC-20 standard), then migrated to **BNB Chain** (Binance's own blockchain).
- **Main purposes**:
- **Transaction fee reduction**: Use BNB to pay for transaction fees on Binance (25% discount).
- **Ecosystem utility**: Pay gas fees on BNB Chain, participate in Launchpad, purchase NFTs, staking...
- **Governance**: BNB holders can vote on Binance's development decisions
**Advantages**
- **Diverse utility**: From trading, staking to building dApps.
- **High liquidity**: BNB is listed on all major exchanges (Binance, Coinbase, OKX...).
- **Strong community**: The Binance ecosystem has over 200 million users.
- **Low inflation**: The token burn mechanism helps make BNB scarce.