Binance-Peg BUSD (BUSD)
History of Binance Coin
Creation and initial offering
Binance Coin was introduced through an Initial Coin Offering (ICO) in July 2017, raising approximately $15 million. During the ICO, 100 million BNB tokens were offered to the public, representing 50% of the total supply of 200 million tokens. The funds raised were used for the development and growth of the Binance platform, including branding, marketing, and technological upgrades.
| Ticker | BUSD |
| Category | Stablecoins |
| Website | https://www.binance.com/en |
| @binance | |
| Contract Addresses | |
|---|---|
| binance-smart-chain | 0xe9...65 |
| optimistic-ethereum | 0x9c...93 |
| polygon-pos | 0x9c...93 |
| avalanche | 0x9c...93 |
Transition to Binance Chain
Initially launched as an ERC-20 token, Binance Coin transitioned to Binance Chain in April 2019. Binance Chain was developed by Binance to offer a high-performance blockchain designed for fast and secure trading. This migration allowed BNB to operate on its native blockchain, enhancing its functionality and integration within the Binance ecosystem.
How Binance Coin works
Utility within the Binance ecosystem
Binance Coin serves multiple purposes within the Binance ecosystem. It can be used to pay for trading fees on the Binance exchange, offering users a discount when fees are paid with BNB. This incentivizes the use of Binance Coin, driving its adoption among traders.
Token burn mechanism
To maintain the value and scarcity of Binance Coin, Binance employs a token burn mechanism. Every quarter, Binance uses 20% of its profits to buy back and burn BNB, permanently removing these tokens from circulation. This process aims to reduce the total supply of BNB over time, potentially increasing the value of the remaining tokens.
Use cases beyond Binance
Beyond trading fee discounts, Binance Coin has expanded its use cases to include participation in token sales on Binance Launchpad, payment options on various online platforms, and even booking travel services. This diversification enhances the utility of BNB and supports its adoption across different sectors.
Binance Smart Chain
Introduction to Binance Smart Chain
In September 2020, Binance launched Binance Smart Chain (BSC), a parallel blockchain to Binance Chain. BSC is compatible with the Ethereum Virtual Machine (EVM), enabling support for smart contracts and decentralized applications (dApps). This compatibility allows developers to port their Ethereum-based applications to BSC with ease.
Role of BNB in Binance Smart Chain
BNB plays a crucial role in Binance Smart Chain as it is used to pay for transaction fees on the network. Additionally, BNB can be staked to support network security and consensus, offering rewards to those who participate in the validation process. This staking mechanism further integrates BNB into the functioning of Binance Smart Chain.