BNB (BNB)
Binance Coin (BNB) is the native cryptocurrency of the Binance platform, one of the world's largest cryptocurrency exchanges. The name "Binance" is derived from a combination of the words "binary" and "finance," reflecting its focus on cryptocurrency-only trading. Binance Coin plays a crucial role within the Binance ecosystem, offering various utilities and benefits to its users.
History of Binance Coin
Binance Coin was launched in 2017 as part of Binance's initial coin offering (ICO). During the ICO, 200 million BNB tokens were created, with the distribution structured as follows: 50% of the tokens were sold during the ICO, 40% were allocated to the founding team, and 10% were designated for angel investors. BNB was initially launched on the Ethereum blockchain as an ERC20 token, but it has since migrated to Binance's own blockchain, Binance Chain.
| Ticker | BNB |
| Category | Smart Contract Platform |
| Website | https://www.binance.com |
| @binance | |
| https://www.reddit.com/r/binance |
The Binance platform
The Binance platform is a prominent cryptocurrency exchange that facilitates the trading of various cryptocurrencies against each other. Unlike some exchanges, Binance does not support the trading of cryptocurrencies against fiat currencies, maintaining its focus on a purely crypto-to-crypto trading environment. This approach has contributed to its rapid success and widespread adoption in the global market. Binance is headquartered in Malta, a location known for its favorable regulatory environment for blockchain and cryptocurrency businesses.
Trading volume and market presence
Binance has achieved significant trading volumes, with daily transactions ranging between 1.5 billion and 2 billion US dollars. This substantial activity underscores Binance's status as a leading platform in the cryptocurrency trading space. The exchange's global reach and large user base have further cemented its position in the market.
Uses and benefits of Binance Coin
Binance Coin offers a variety of uses and benefits within the Binance ecosystem. One of its primary functions is to serve as a utility token for paying fees on the Binance platform. These fees include trading fees, transaction fees, listing fees, and more.
Fee discount structure
A key advantage of using BNB on Binance is the substantial discount users receive when paying fees with the token. The fee discount structure is designed to incentivize the use of BNB and encourage trading activity on the platform. The discount schedule is as follows:
- First year: 50% discount on all fees
- Second year: 25% discount
- Third year: 12.5% discount
- Fourth year: 6.75% discount
- From the fifth year onwards: no discount
Buyback and burn program
To support the long-term value of Binance Coin, Binance announced a buyback and burn program in early 2018. According to this plan, Binance intends to repurchase up to 100 million BNB tokens and subsequently "burn" them, effectively removing them from circulation. This process reduces the total supply of BNB, potentially increasing the value of the remaining tokens and benefiting investors.