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What is Binance Coin (BNB)

Jan 01, 2022 5 Mins 1366 Views
AfenGroup Marketing Specialist

Chapter 1: Introduction to BNB

 

Binance Coin (BNB) powers the Binance Ecosystem and serves as the native coin of the Binance Chain and the Binance Smart Chain. 

 

What is BNB used for?

BNB has several use cases, the most common uses cases being:

 

  • Used to pay for trading fees on the Binance exchange;

  • Used to pay for trading fees on Binance DEX (Decentralized Exchange);

  • Used to pay for transaction fees on the Binance Chain;

  • Used to pay for transaction fees on the Binance Smart Chain;

  • Pay for goods and services for both online and in-store purchases within stores or platforms accepting BNB (e.g. to purchase some NFTs on AFEN marketplace.); Used to pay

  • Serves as the community utility token on the Binance Smart Chain ecosystem (such as games and DApps)

 

BNB also provides liquidity for on Binance Liquid Swap and is used to participate in token sales hosted on the Binance Launchpad.

 

Approximately two million users have used BNB to pay for trading fees on the Binance Exchange, totaling more than 40 million BNB on more than 127 billion trades. 

 

BNB is also powering the Binance DEX (on the Binance Chain) and hundreds of applications that are running on the Binance Smart Chain (BSC). This means that you can use BNB outside the Binance trading platform as well. Indeed, more than 180 digital assets (like the AFEN token) have been issued on BSC, and millions of users have consumed BNB for utility purposes in connection with BSC.

 

When was BNB introduced? 

BNB was launched through an Initial Coin Offering (or ICO) that took place from June 26th to July 3rd, 2017 - 11 days before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. Although BNB was launched through an ICO, BNB does not provide users with a claim on Binance profits and does not represent an investment in Binance.

BNB was originally issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million BNBs were offered in the ICO, but the current total supply is lower due to periodic burning events, in which Binance destroys BNB held in its treasury.

 

ERC-20 BNB tokens were later moved to Binance Chain - Binance’s unique blockchain - and swapped with BEP-2 BNB on a 1:1 ratio. The BEP-2 BNB serves as the native coin of the Binance Chain.

 

In September 2020, Binance launched the Binance Smart Chain (BSC) - a blockchain network that runs in parallel with the Binance Chain - with BNB BEP-20 serving as the native coin. 

 

In total, there are now three forms of BNB: 

 

  • BNB BEP-2 on the Binance Chain.

  • BNB BEP-20 on the Binance Smart Chain.

  • BNB ERC-20 on the Ethereum network.

How many Binance Coins (BNB) are there in circulation? 

 

There is an initial maximum supply of 200,000,000 BNB coins, of which 168,137,036 are currently in circulation.

 

Where do I get BNB?

 

BNB is mostly purchased in the secondary market. You can buy and sell BNB on Binance.com and on other crypto exchanges.


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