Binance Chain Native Token
BNB is the native currency of the BNB Chain used for gas fees and security. It is also an exchange token used to pay for discounted trading fees on the Binance exchange.
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- BNB Chain
- Community
- Source Code
- Website
- Asset Type: Native
- Volume (24H): $1.3K
- ATH: $690.50 (11/12/2024)
- ATL: $401.63 (08/05/2024)
BNB is a large-cap asset that represents the protocol`s native governance or utility token. This asset depends on a centralized entity for custody services.
Binance Chain Native Token has no dependencies.
BNB has a fixed supply.
BNB is highly correlated to the overall market.
What is BNB used for?
The BNB token has two main use cases: to pay for gas fees on the network and for staking to secure the blockchain. The BNB Chain requires a small amount of BNB to execute transactions on the blockchain. Validators on the network are required to stake BNB to process network activity and earn transaction fees (paid in BNB).
BNB tokenomics
The total supply of BNB is capped at 200M tokens. The Binance exchange pre-mined the 200M BNB tokens prior to public launch. Founders received 80M BNB (40% of supply) vested over four years; beginning in 2019, these tokens are burnt through quarterly burns and will remain illiquid until fully burnt. Investors received 20M BNB (10%) with no vesting or lock-up restrictions. The public sale distributed 100M BNB (50%) with the funds used for branding and marketing and platform upgrades.
How does BNB accrue value?
BNB is intended to be a deflationary asset as Binance committed to using 20% of the centralized exchange's quarterly profits to burn BNB. Binance will continue to burn BNB equivalent to 20% of its quarterly profits until the circulating token supply reaches 100M BNB. In addition, a fixed portion of fees paid to execute transactions on the BNB Chain are burned (currently 10% but adjustable via governance), reducing the supply, and increasing the BNB token's scarcity.
