BNB (BNB)
BNB is the cryptocurrency that fuels the Binance ecosystem. It can be used for a variety of purposes, such as receiving discounts within the Binance ecosystem, staking, governance, and settling transactions on BNB Chain. Additionally, BNB is accepted for payments and DeFi services. The supply of BNB is periodically reduced through quarterly burning events, a process that includes burning a portion of the BNB used as transaction gas on the BNB Chain.
History of BNB
| Ticker | BNB |
| Category | Smart Contract Platform |
| Website | https://www.binance.com |
| @binance | |
| https://www.reddit.com/r/binance |
Binance introduced BNB through an initial coin offering (ICO) in July 2017, selling tokens at 15 cents each and raising $15 million in Bitcoin and Ethereum. The funds were allocated to enhance the Binance platform, branding and marketing, and as a reserve for emergencies. Initially an ERC-20 token on Ethereum, BNB transitioned to the BNB Chain in 2019, which includes two blockchains: BNB Beacon Chain for governance and BNB Smart Chain for smart contracts.
Utility of BNB
Uses and services
BNB offers users several benefits on the Binance exchange, including transaction fee discounts. It also serves as a method for settling transactions on BNB Chain, staking, and governance participation. The token provides access to various Binance services, such as the VIP program, Binance Launchpool, Binance Pay, and Binance Visa Card. It is also accepted by several payment service companies and decentralized applications across multiple industries.
BNB burning
Methods of burning
BNB is burned through quarterly events and the BEP-95 mechanism, reducing the total supply. The aim is to decrease the initial supply of 200 million BNB by half. The quarterly burns were initially based on trading volumes but transitioned to the BNB Auto-Burn in December 2021, offering more transparency by adjusting the burn amount based on BNB price and blockchain activity.
BNB Auto-Burn
The BNB Auto-Burn mechanism, implemented in December 2021, adjusts the burn amount according to BNB's price and the number of blocks produced. This mechanism will continue until the circulating supply drops below 100 million BNB. The first auto-burn removed over 1.6 million BNB from circulation, with subsequent burns continuing the process.
BEP-95
Introduced in November 2021, BEP-95 is a real-time burning mechanism on the BNB Chain, burning a portion of gas fees from each block. This mechanism will persist beyond the 100 million BNB burn target, accelerating the overall burning process by increasing burns with greater chain usage.
BNB Pioneer Burn Program
The BNB Pioneer Burn Program allows users who lose tokens under certain conditions to contribute them to the burn count and receive reimbursement in BNB. Eligible cases include token losses exceeding $1,000 but less than the planned burn volume.
BNB mainnet swap
After the launch of Binance Chain's mainnet, BNB transitioned from an ERC-20 token on Ethereum to a BEP2 token on Binance Chain at a 1:1 ratio. The swap process included burning all remaining ERC-20 tokens. Users could also leave their tokens on Binance accounts for automatic conversion. The successful migration was announced by Changpeng Zhao in April 2019.