What Is Binance Coin (BNB)?
It has several use cases:
you can use it to pay for trading fees on the Binance Exchange;
you can use BNB to participate in token sales hosted on the Binance Launchpad;
more and more vendors are accepting BNB as a payment method;
BNB is also used to power the Binance DEX (Binance Decentralized Exchange);
Where did it start?
Binance Coin 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.
BNB was 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 than that due to the periodic burning events. If you want to know more about coin burns, and why BNBs are being permanently destroyed, check out our article about coin burns.
Although initially based on the Ethereum network, the ERC-20 BNB tokens will be swapped with BEP2 BNB on a 1:1 ratio. The new BNB is the native coin of the main Binance Chain, and the mainnet launch was announced on April 18th. You may find more information about the mainnet swap here.
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 the 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. If you choose to pay in BNB, you will get a special discount on your trading fees.
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!