Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, including the Binance Chain and Binance Smart Chain. Initially launched as an ERC-20 token on the Ethereum network, BNB has evolved into a multifaceted digital asset with broad utility across both the Binance exchange and the wider blockchain space.
The Origin of Binance Coin
BNB was first introduced through an Initial Coin Offering (ICO) held from June 26 to July 3, 2017. The Binance exchange commenced operations just 11 days after the ICO concluded. The initial offering price was set at 2,700 BNB for 1 ETH and 20,000 BNB for 1 BTC.
It’s important to clarify that holding BNB does not equate to owning a share of Binance exchange or its profits. BNB is a utility token designed to empower the Binance ecosystem—not an equity investment.
Five Primary Use Cases for BNB
BNB offers a range of applications that extend beyond simple transactions. Here are five major ways it is used:
- Pay for Transaction Fees: BNB can be used to cover trading fees on Binance Exchange, Binance DEX, Binance Chain, and Binance Smart Chain.
- Purchase Goods and Services: From online to physical stores, BNB is accepted as payment via Binance Card or Binance Pay. It can also be used for booking travel accommodations on platforms like Travala.com.
- Participate in Ecosystem Activities: BNB is used in token sales on Binance Launchpad, as well as in various games and decentralized applications (DApps) on Binance Smart Chain.
- Make Donations: Users can contribute to charitable causes through Binance Charity using BNB.
- Provide Liquidity: BNB holders can supply liquidity to pools on platforms like Binance Liquid Swap.
The Three Types of BNB Tokens
The total supply of BNB was initially set at 200 million tokens, with half offered during the ICO. Binance conducts periodic "burns," destroying a portion of BNB held in its treasury to reduce overall supply.
While BNB began as an ERC-20 token, it has since migrated to Binance’s native networks. Today, there are three main forms of BNB:
- BEP-2 BNB on Binance Chain
- BEP-20 BNB on Binance Smart Chain (BSC)
- ERC-20 BNB on the Ethereum network
Holders can swap between these versions at a 1:1 ratio.
Real-World Applications: Using BNB for Travel and More
BNB stands out as one of the few exchange-based cryptocurrencies with substantial real-world utility. It can be used to pay for travel, virtual gifts, loans, rewards, and even smart contract execution. Millions of BNB have been spent across various goods and services, highlighting its growing adoption.
A major use case remains fee payment on the Binance exchange. Over 2 million users have used BNB to pay for transactions, resulting in more than 127 billion trades and over 40 million BNB spent on fees. Using BNB to pay for fees also qualifies users for a discount.
How to Use BNB for Trading Fee Discounts
Standard trading fees on Binance start at 0.1%, but users can receive a discount by paying with BNB. The discount rate follows a predefined schedule and is especially beneficial for high-volume traders.
It’s worth noting that fee structures may differ on Binance Futures, so users should always check the latest fee schedule.
👉 Explore more strategies on maximizing trading fee discounts
BNB’s Role in Powering Binance Smart Chain
Beyond trading fee benefits, BNB is fundamental to the operation of Binance DEX and numerous DeFi projects on BSC. This allows BNB holders to use their tokens in a wide range of applications outside the Binance exchange.
There are over 180 digital assets issued on BSC, and millions of users engage with BNB in various ecosystem projects—from yield farming to NFT marketplaces.
How to Buy BNB
Acquiring BNB is straightforward and similar to purchasing other cryptocurrencies. Most BNB trading occurs on secondary markets, including Binance.com and other major exchanges. You can buy BNB by placing an order on any supporting platform.
Frequently Asked Questions
What is Binance Coin (BNB)?
BNB is the native cryptocurrency of the Binance ecosystem. It was initially launched on Ethereum but now primarily operates on Binance Chain and Binance Smart Chain. It is used for paying fees, participating in token sales, and accessing various services.
Can I use BNB outside the Binance exchange?
Yes. BNB is accepted by numerous merchants for payments, used in DeFi applications on BSC, and applicable in charity donations, gaming, and travel bookings.
Is BNB a good investment?
While BNB offers utility and ecosystem benefits, it is not a representation of equity in Binance. Its value is influenced by market demand, adoption, and broader cryptocurrency trends. Always do your own research before investing.
How often does Binance burn BNB?
Binance conducts quarterly burns, destroying a portion of BNB tokens based on trading volume. This mechanism is designed to reduce supply over time.
What is the difference between BEP-2 and BEP-20 BNB?
BEP-2 is the token standard on Binance Chain, while BEP-20 is used on Binance Smart Chain. Both are versions of BNB but operate on different networks with distinct technical features.
Where can I securely store BNB?
You can store BNB in a variety of wallets, including Binance’s native trust wallet, hardware wallets like Ledger, or other supported software wallets. Always prioritize security and use official sources.
👉 View real-time tools for tracking BNB burns and supply metrics