About BNB (BNB)
BNB, short for “Build and Build,” is the native cryptocurrency of the BNB Chain ecosystem, which includes the BNB Beacon Chain and BNB Smart Chain (BSC). Originally launched by Binance—one of the world’s largest cryptocurrency exchanges—BNB was initially designed to offer users discounted trading fees. Since then, it has evolved into a utility token and gas token powering a wide range of blockchain applications, especially in DeFi, NFTs, and Web3.
What Is BNB Used For?
BNB has grown far beyond its original purpose on the Binance exchange. It is now a versatile token used for:
- Paying transaction fees on the BNB Smart Chain;
- Staking and governance in the BNB Chain ecosystem;
- Participating in token sales on Binance Launchpad;
- Paying trading fees on Binance for a discount;
- Spending on travel, entertainment, and e-commerce (via Binance Pay or partnered platforms).
How Does BNB Work?
BNB functions as both a utility token and the gas token for the BNB Chain. Here's how it works in different environments:
- BNB Smart Chain (BSC): A high-speed, low-fee blockchain compatible with Ethereum’s EVM (Ethereum Virtual Machine), used for running smart contracts and dApps;
- BNB Beacon Chain: Supports governance functions such as staking and voting on network upgrades.
BNB is used to pay for transaction fees on both chains, similar to how ETH is used on Ethereum. This keeps the network running efficiently and economically.
Who Created BNB?
BNB was launched in 2017 by Binance, founded by Changpeng Zhao (CZ). It was initially sold as part of Binance’s Initial Coin Offering (ICO) to fund the development of the exchange. Since then, Binance has continued to support the growth of the BNB ecosystem, including its blockchain infrastructure and DeFi innovations.
BNB Burning Mechanism
Unlike some cryptocurrencies that inflate over time, BNB has a deflationary model. Binance uses a portion of its revenue to buy back and burn (destroy) BNB tokens permanently. This reduces the total supply over time, which is intended to increase scarcity and support long-term value.
There are two main burn mechanisms:
- Quarterly Burns: Binance destroys BNB based on trading volume.
- Auto-Burn System: An algorithmic, transparent burn mechanism independent of Binance's revenue.
The goal is to eventually reduce the total supply from 200 million BNB to 100 million BNB.