What Is BNB?
Also known as: Binance Coin, BNB Chain, BNB Smart Chain, BSC
In short
BNB is the cryptocurrency issued by Binance in 2017 and now used as the native token of the BNB Chain ecosystem. It is used on BNB Smart Chain for paying transaction fees and for various benefits on the Binance platform.
BNB was distributed in 2017 through Binance's token sale (ICO) as an ERC-20 token on Ethereum and was initially named Binance Coin. It was later moved to Binance's own blockchain. In 2020, the EVM-compatible Binance Smart Chain, offering smart contract support, was launched; these networks were renamed under the BNB Chain umbrella in 2022, and the main chain came to be called BNB Smart Chain (BSC).
BNB's uses include paying gas fees on the BSC and opBNB networks, getting trading fee discounts on Binance, taking part in token sale platforms and staking with validators to secure the network. BSC's low transaction fees contributed to many DeFi applications and BEP-20 tokens being on this network.
BNB's supply is reduced through regular token burns; the goal is to bring the total supply down from the initial 200 million to 100 million. In addition, part of the transaction fees is also burned. The network operating with a relatively small number of validators and its close tie to Binance are among the points criticized from a decentralization standpoint.
Last updated: · This content is for information purposes only and is not investment advice.