# CRYPTO 101

BNB: The Cryptocurrency Powering Binance Ecosystem



  • BNB, Binance's platform token, facilitates transactions on Binance Exchange and its associated chains.
  • Issued with a total supply of 200 million tokens, BNB undergoes regular burn events to stabilize its value.
  • With Binance's market dominance, burning mechanisms, and expanding ecosystem, BNB holds promising future potential.


Discover BNB – Binance Coin, a platform token facilitating transactions within the Binance ecosystem. Learn its uses, issuance, burning, and future prospects.





BNB Coin is a token (platform coin) launched by the Binance exchange, originating from its native tokens on both the Binance Chain and the Binance Smart Chain, aimed at promoting the development and use of the exchange ecosystem. BNB Coin circulates within the exchange and can be used to pay transaction fees, participate in voting, and purchase ICOs, among other uses. BNB Coin was initially issued in the form of an ICO with 100 million coins and has a total supply of 200 million coins, existing initially in the form of ERC-20 on the Ethereum blockchain.


Although ERC-20 BNB was initially based on the Ethereum network, it later became exchangeable with BEP-2 BNB at a 1:1 ratio. This BEP-2 BNB is the native token of the Binance Chain, with the mainnet officially launched on April 18, 2019.


In September 2020, Binance launched the Binance Smart Chain (BSC), a blockchain network that can operate alongside the Binance Chain. This means you can access BNB in 3 different forms:


1. BNB BEP-2 on the BNB Beacon Chain.

(According to Binance, the BNB Beacon Chain will be migrated into the BNB Smart Chain by June 2024. Check out Fusion roadmap for more information.)

2. BNB BEP-20 on the BNB Smart Chain. 

3. BNB ERC-20 on the Ethereum network.


BNB is more than just a cryptocurrency; it plays a crucial role in the development of the entire Binance exchange ecosystem.




  • Binance Coin (BNB) can be used to pay for transaction fees on the Binance exchange, transaction fees on Binance DEX (decentralized exchange), and transaction fees generated on Binance Chain and Binance Smart Chain. Users receive fee discounts when paying with BNB.


  • BNB can be used to make payments for goods and services online and in physical stores (e.g., using Binance Card or Binance Pay), or to book hotels, flights, and purchase items on Travala.com.


  • It can be utilized as a community utility token for the Binance Smart Chain ecosystem (e.g., in games and DApps), or to participate in token auctions held by Binance Launchpad.


  • BNB can be used to donate to Binance Charity.


  • It provides liquidity for Binance Liquid Swap.


As BNB is a platform coin, its value is closely related to the native platform. Binance remains the world’s largest cryptocurrency exchange since its establishment in 2017. Currently, Binance’s daily spot trading volume reaches $38 billion, derivative trading volume reaches $1.0913 trillion, with over 380 tradable cryptocurrencies and diversified DeFi applications. Using BNB on the Binance exchange offers discounts and fee rebates, making it highly demanded compared to other platform coins.


In terms of applications, BNB is not only used for fee discounts on exchanges but also for various payments. As long as BNB continues to offer multifunctionality and can even serve as a daily payment tool, it will attract more users. Additionally, Binance commits to quarterly BNB buybacks and burns, implementing an automatic burn mechanism in 2021 to maintain the stability of BNB’s value and prevent inflation and depreciation.


>>> More to read: TOP 5 Crypto Trading Platforms April 2024






The total supply of BNB is 200 million tokens, with 100 million tokens supplied through an initial coin offering (ICO). The demand for and burning of BNB directly affect its price.


To stabilize the price of BNB and enhance investor confidence, Binance regularly conducts token burn events, repurchasing and burning BNB from its inventory. According to Binance’s whitepaper, Binance allocates 20% of its profits each quarter for the repurchase and burning of BNB from the market until the total supply decreases to 100 million tokens.


Since the last quarter of 2021, Binance has implemented an automatic burning mechanism called Auto-Burn, with the burn quantity calculated automatically by a formula.


As of now, Binance has conducted 21 burning events, totaling 131,633.18 BNB burned, valued at approximately $46,076,878.33 USD.




As long as the cryptocurrency market continues to evolve, BNB undoubtedly holds significant promise as a cryptocurrency. Investors in the crypto sphere widely anticipate a bright future for BNB, expecting its price to continue rising. The underlying reasons for this optimism are as follows:


  • BNB is issued by Binance, the world’s largest cryptocurrency exchange by trading volume.


  • Supply and burning: With a fixed supply and quarterly token burns, theoretically, the burning mechanism can drive BNB’s price up when the total value remains unchanged.


  • Marketing strategies: Binance continually attracts new partners and expands its ecosystem.


  • Binance Bridge facilitates interaction and cross-chain asset transfers between different dApps, enhancing user convenience in participating in DeFi projects.


  • Growth in DeFi ecosystem applications: Many prominent DeFi projects are built on BNB Chain, and the development of DeFi will drive the growth of BNB Chain, thus boosting the price of BNB.




BNB, the native token of the Binance exchange, serves as a pivotal asset not only within the exchange’s internal ecosystem but also in driving the development of Binance Chain and Binance Smart Chain. Its utility spans a wide range of applications, including paying transaction fees, participating in token auctions, purchasing goods and services, donations, providing liquidity, and more. Holding BNB offers trading fee discounts for those looking to trade on the Binance exchange and can also be utilized in projects related to Binance Smart Chain (BSC).




  • What is BNB?

BNB, from Binance, is their platform token from Binance Chain and Binance Smart Chain, fostering their exchange ecosystem. It circulates internally.


  • What are BNB advantages?

Binance Coin (BNB) pays fees on Binance exchange & DEX, used for payments, DApps, charity, and liquidity. BNB’s value tied to Binance platform, largest exchange since 2017. Discounts on Binance exchange drive demand. BNB offers versatile payment options and benefits from Binance’s buyback and burn program.


  • Where can I acquire BNB?
  1. Purchase on Binance Exchange or other cryptocurrency exchanges.
  2. Participate in community events or giveaways hosted by Binance.
  3. Take part in token auctions on Binance Launchpad.
  4. Mine on Binance Pool.



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