BNB

What is BNB?

BNB is a native sign Binance, one of the most popular exchanges in the world of cryptocurrencies. The successful operation of projects belonging to the Binance ecosystem largely depends on BNB coins. These projects include Binance Wallet, Binance Chain, Binance Smart Chain, Binance Research and Binance Academy.

The token is very beneficial for Binance as it has attracted a huge number of investors since its launch and is the driving force behind the entire ecosystem. If you are interested in the current price of BNB, check out the price chart above.

However, despite the fact that the BNB crypto asset was originally an ERC-20 token based on the Ethereum blockchain, after the creation of Binance Chain it became the native token of the network.

While BNB tokens were part of the Ethereum network, they were secure Proof of Stake consensus mechanism. However, after Binance released its own blockchain, the consensus mechanism for newly issued tokens was switched to Proof of Work.

Besides, Tendermint Byzantine Fault Tolerant (BFT) The consensus mechanism also protects BNB coins. Essentially, it is the ability of a distributed network to reach agreement on the same value despite some nodes not responding or providing inaccurate information.

Binance Developers

Binance was founded Changpeng Zhao, also known as CZ, in 2017. The project started with Initial Coin Offering (ICO) for BNB coins, which raised $15 million.

Changpeng Zhao is the CEO of Binance. He has extensive experience in the cryptocurrency space, having been working with blockchain technology since 2013. Early in his career, he worked at Bloomberg Tradebook, where he created FinTech-based software. In addition, CZ was the CTO of the OKCoin exchange, one of the most popular exchanges in China that exchanged fiat currencies for crypto assets.

BNB Use Cases

One of the main goals of BNB is to serve as the driving force behind Binance Chain. Additionally, BNB tokens are required to trade on the Binance exchange. However, beyond these two, there are many additional uses for BNB tokens:

• A way to upgrade your Binance account. You can get VIP status on your Binance account if you have a certain amount of BNB tokens in your account and your 30-day trading volume exceeds certain limits. This will provide you with additional commission discounts and other benefits.
• A way to reduce trading commissions. BNB tokens can be used as a means to receive discounts on Binance fees. You can get a 25% discount on transaction fees when using BNB tokens on Binance DEX.
• Database of lottery draws in IEO Lottery. Initial Exchange Offerings (IEO) on Binance are conducted using lottery distributions based on the amount of BNB owned by users.
• Currency used outside of Binance. BNB tokens can be used to make a variety of payments, including virtual gifts, hotel bookings, and more.
• Crypto dust conversion. BNB tokens can be used to convert non-tradable amounts of cryptocurrency, known as dust, remaining in Binance accounts. Dust is a small amount of cryptocurrency left behind after a trade or transaction.

Additionally, you should check the BNB price chart above as it displays both the current and previous BNB price.

Tokenomics of BNB

The maximum supply of BNB is 200 million tokens. The ICO allocated 100 million tokens, allowing Binance to raise $15 million. At that time, the price of BNB was $0.10 per token. The remaining half of the supply was distributed among the founding members and the Binance team (40%), as well as angel investors (10%).

Since the BNB token has a fixed number of tokens in circulation, this means that The BNB is deflationary. To keep the price of BNB from falling, he uses BEP-95 (Binance Evolution Offering) which is a real-time burning engine. BNB coins are burned every three months. The value of the tokens burned depends on the price of BNB at the time of the burn. For example, on April 19, 2022 (during the 19th BNB burn), approximately $772 million worth of BNB tokens were burned. Overall, Binance aims to reduce the total supply of BNB tokens to 100 million.