BNB: from discount token to the core of the Binance ecosystem
What is BNB?
BNB (formerly Binance Coin) is the native token of the world's largest cryptocurrency exchange, Binance. It was created in 2017 as a utility token for discounts on trading fees. However, since then, its role has significantly expanded.
Initially, BNB was issued as an ERC-20 standard token on the Ethereum blockchain. However, after the launch of its own network, Binance Chain, in 2019, and then Binance Smart Chain (now BNB Smart Chain), the token was moved to its own ecosystem.
How is BNB used today?
BNB is no longer just a "discount token". It can be used for:
For paying trading fees on Binance and other ecosystem products;
To participate in token sales on Binance Launchpad;
In DeFi protocols built on BNB Smart Chain;
For payments in the real world (via Binance Pay and partnerships);
To participate in DAO and votes in some dApps;
In the form of gas (fees) within BNB Smart Chain.
BNB has become the core of the fast-growing Binance ecosystem, which includes exchanges, wallets, NFT marketplaces, blockchains, and even venture funding.
Token economics: burning and supply
One of the key features of BNB is the mechanism of regular token burning. Initially, 200 million BNB were issued, and Binance promised to destroy 100 million over time, which is half of the total supply.
Burning occurs quarterly and depends on trading volumes. There is also BEP-95 — a mechanism that burns part of the fee in real time, similar to Ethereum EIP-1559.
This makes BNB a deflationary asset.
Interesting facts
At the peak of the bull market, BNB became the third largest cryptocurrency by market capitalization after BTC and ETH.
Binance Smart Chain has become one of the most popular alternatives to Ethereum for DeFi and NFT.
BNB is actively used in GameFi projects, metaverses, and crowdfunding.
Despite a centralized launch, BNB Smart Chain is gradually introducing elements of decentralization through a validator system.
BNB is an example of how a utility token can evolve into a full-fledged infrastructure asset. It remains at the center of one of the most influential crypto ecosystems, and its significance is directly linked to the growth of Binance and its technologies.
