#BNB BNB, short for Binance Coin, is the native cryptocurrency of the Binance ecosystem—one of the world's largest cryptocurrency exchanges. Launched in July 2017 through an Initial Coin Offering (ICO), BNB initially ran on the Ethereum blockchain using the ERC-20 standard. However, it has since migrated to Binance's own blockchain, known as BNB Chain (formerly Binance Chain and Binance Smart Chain).
Key Uses of BNB
BNB was originally created to offer users discounts on trading fees on the Binance Exchange. Over time, its utility has expanded significantly. Today, BNB can be used for:
Trading and paying fees on Binance and other supported platforms.
Token sales on Binance Launchpad.
Transaction fees on BNB Chain.
Online and in-store purchases via crypto payment gateways.
Staking and DeFi applications, such as yield farming or liquidity provision.
BNB Burn Mechanism
One of BNB's standout features is its quarterly burn mechanism. Binance uses a portion of its profits to buy back and burn BNB tokens, reducing the total supply and aiming to increase the value over time. The goal is to burn 100 million BNB—half of the total supply.
BNB Ecosystem and Innovation
BNB powers a wide range of applications in the broader Binance ecosystem, including:
Binance DEX (decentralized exchange)
Binance Smart Chain (BSC), which supports smart contracts and decentralized apps (DApps)
NFT platforms, gaming projects, and DeFi protocols
Conclusion
BNB has evolved from a simple utility token into a core component of a vast crypto ecosystem. Its strong use case, deflationary model, and role in the rapidly growing DeFi and Web3 space make it a signi
ficant player in the crypto world.