Introduction to Binance Coin (BNB)
Binance Coin (BNB) is the native cryptocurrency of Binance, the world's largest cryptocurrency exchange by trading volume as of April 2021. Initially launched as an ERC-20 token on the Ethereum blockchain, BNB later migrated to become the native asset of Binance Chain.
Key characteristics:
- Ticker symbol: BNB
- Hard-capped supply: 200 million tokens
- Transaction capacity: Supports over 1.4 million transactions per second
The History of Binance Coin
BNB was introduced in July 2017 through an Initial Coin Offering (ICO):
- 10% (20M BNB) allocated to angel investors
- 40% (80M BNB) reserved for the founding team
- 50% (100M BNB) sold to public participants
ICO fund allocation:
- 50% for Binance branding and marketing
- 35% for platform development
- 15% for ecosystem upgrades
👉 Discover how BNB became the third-largest cryptocurrency by market cap
BNB Token Burns
Binance implements quarterly token burns to reduce supply:
- 20% of profits used to repurchase and burn BNB
- Latest burn (April 2021): 1,099,888 BNB ($595M)
- Total supply reduced from 170,532,825 to 169,432,937 BNB
Use Cases and Adoption
BNB has evolved beyond its original purpose as a trading fee discount token:
Primary Applications:
- Transaction fees on Binance platforms
- Payments (Crypto.com, HTC devices)
- Travel bookings (Travala, Trip.io)
- Digital entertainment (virtual gifts, lotteries)
- Financial services (loans, investments)
Ecosystem Partners:
- Uplive (video streaming platform)
- Monaco VISA debit cards
- Multiple DeFi platforms
Binance Smart Chain (BSC)
Key statistics (April 2021):
- Daily transactions: 4.9 million
- 3x Ethereum's transaction volume at peak
- Supports smart contracts and dApp development
Frequently Asked Questions
What is BNB Coin?
BNB is the native cryptocurrency of the Binance ecosystem, primarily used for paying transaction fees and accessing platform services.
What are the main uses of BNB?
- Trading fee discounts
- Cross-border payments
- Travel bookings
- Digital purchases
- Investment opportunities
- DeFi applications
What does "dust conversion" mean?
Dust conversion allows users to automatically exchange small residual balances (<0.001BTC equivalent) into BNB, improving portfolio management.
Is Binance available in the United States?
Binance operates separate platforms for international users (Binance.com) and U.S. customers (Binance.US) to comply with regional regulations. The company maintains active dialogue with global regulators.
👉 Learn more about BNB's evolving ecosystem
Market Position
As of June 2021:
- Market capitalization: $60.8 billion
- Circulating supply: ~169 million BNB
- Ranking: #3 cryptocurrency by market cap (after Bitcoin and Ethereum)
Key Takeaways
- BNB serves as the backbone of the Binance ecosystem
- Regular token burns create deflationary pressure
- Expanding use cases drive adoption
- Binance Smart Chain enables Ethereum-compatible dApps
- Institutional interest continues to grow
The Binance Coin ecosystem demonstrates how exchange tokens can evolve into multifaceted blockchain platforms with substantial real-world utility.