BNB (originally Binance Coin, now simply BNB) is the native token of both the Binance exchange ecosystem and the BNB Chain — one of the most widely used blockchain networks in the world. Launched in 2017 as an ERC-20 token during Binance’s ICO, BNB was initially used to pay trading fees on Binance at a discount. It subsequently migrated to its own blockchain (BNB Chain, formerly Binance Smart Chain / BSC) and now powers one of the largest DeFi ecosystems by total value locked and transaction volume.
BNB has multiple use cases: Fee discounts — paying trading fees on Binance with BNB gives users a discount; Gas fees — BNB is used to pay transaction fees on BNB Chain; DeFi — BNB Chain hosts hundreds of DeFi protocols including PancakeSwap (the leading DEX); Launchpad — BNB holders get access to Binance Launchpad token sales; and Payments — accepted by thousands of merchants globally. BNB has a deflationary mechanism: Binance conducts quarterly burns using 20% of profits, permanently removing BNB from circulation until 100 million tokens (half the original supply) are destroyed.
BNB Chain is notable for low fees and high throughput, making it popular for retail DeFi users who find Ethereum too expensive. However, it is more centralised than Ethereum, with a smaller validator set.
Example: A trader holds BNB and pays trading fees on Binance in BNB, receiving a 25% discount. Over a year of active trading, this saves hundreds of dollars compared to paying in other currencies.
Learn more: BNB Chain — Official Site
