What Is Binance Coin (BNB)?
It has several use cases:
you can use it to pay for trading fees on Binance;
it can be used in token sales hosted on the Binance Launchpad;
more and more vendors are accepting it as a payment method;
and soon, it will be used to power Binance’s upcoming Decentralized Exchange;
Where did it start?
Binance Coin was launched in an Initial Coin Offering (or ICO) from June 26th to July 3rd, 2017 - 11 days before Binance Exchange opened for trading.
The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB.
It was issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million were offered in the ICO.
But did you know that half of the total BNB in existence will eventually be destroyed? Check out our video about coin burns to find out why.
What is Binance Coin (BNB) used for?
We’ve already mentioned that BNB has many use cases. For instance, you can use BNB to pay for your travel expenses, buy virtual gifts, and much more. But let’s take a look at how BNB can help you with trading fees.
When trading on Binance Exchange, each trade will incur in a standard fee of 0.1% (trading fees are determined based on trading volume). You can either pay the trading fees using the assets you are trading or you can pay for them with BNB and, by doing so, you will get a special discount.
Therefore, if you trade a lot on Binance, you should consider getting more BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a predefined schedule and the discount will be reduced every year until 2021.
|Year 1 (July 14, 2017 - July 14, 2018)||50%|
|Year 2(July 14, 2018 - July 14, 2019)||25%|
|Year 3 (July 14, 2019 - July 14, 2020)||12.5%|
|Year 4 (July 14, 2020 - July 14, 2021)||6.75%|
|Year 5 (July 14, 2021 - July 14, 2022)||0% (No Discount)|
BNB still has a lot more for the future.
Stay tuned for more news about upcoming features!