- BNB powers the Binance ecosystem and is that the native asset of Binance Chain. BNB may be a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for fee reduction on the Binance exchange, its scope was extended over the years.
- BNB powers the Binance Chain as its native chain token. as an example , it’s wont to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.
- In addition to its on-chain functions, BNB has multiple additional use-cases like fee discount on multiple exchanges (e.g., Binance.com), payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.
- At the core of the economics of BNB, there’s a burn system resulting in period reductions in its total supply (~ every three months). From its initial maximum supply of 200 million, burns will keep occurring until the availability reaches 100 million.
BNB powers the Binance Ecosystem and is that the native coin of Binance Chain.
It has several use cases:
- you can use it to buy trading fees on the Binance Exchange;
- you can use BNB to participate in token sales hosted on the Binance Launchpad;
- more and more vendors are accepting BNB as a payment method;
- BNB is additionally wont to power the Binance DEX (Binance Decentralized Exchange);
Where did it start?
BNB was launched through an Initial Coin Offering (or ICO) that happened from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading.
The issue price was 1 ETH for two ,700 BNB or 1 BTC for 20,000 BNB.
BNB was issued as an ERC-20 token, running on the Ethereum network, with a complete supply of 200 million coins. 100 million BNBs were offered within the ICO, but the present total supply is less than that thanks to the periodic burning events. If you would like to understand more about coin burns, and why BNBs are being permanently destroyed, inspect our article about coin burns.
Although initially supported the Ethereum network, the ERC-20 BNB tokens are going to be swapped with BEP2 BNB on a 1:1 ratio. The new BNB is that the native coin of the most Binance Chain, and therefore the mainnet launch was announced on April 18th. you’ll find more information about the mainnet swap here.
What is BNB used for?
We’ve already mentioned that BNB has many use cases. as an example , you’ll use BNB to buy your travel expenses, buy virtual gifts, and far more. But let’s take a glance at how BNB can assist you with trading fees.
When trading on the Binance Exchange, each trade will incur during a standard fee of 0.1% (trading fees are determined by your monthly trading volume and BNB holdings). you’ll either pay the trading fees using the assets you’re trading otherwise you pays for them with BNB. If you select to pay in BNB, you’ll get a special discount on your trading fees.
Therefore, if you trade tons on Binance, you ought to consider getting more BNB and using them to buy your fees. confine mind that the deduction for trading fees follows a selected schedule, so confirm to see the present spot trading Fee Schedule. it is also worth noting that the Binance Futures platform follows a rather different Fee Schedule.