Exploring BNB Token: The Heart of BNB Chain

BNB is the native coin of the BNB Chain ecosystem. BNB is sometimes misunderstood as Binance’s exchange token however it is the native token of the BNB Chain ecosystem, supporting one of the most diverse and dynamic Web3 ecosystems. In today’s blog, let’s understand the full potential of the BNB token and how it currently stands as one of the most diverse and utilitarian coins in the crypto sector.

What is BNB Chain?

BNB Chain is a decentralized and community-driven ecosystem. Initially, it consisted of two major components - the BNB Beacon Chain  (handling BNB Chain governance, including staking and voting) and the BNB Smart Chain (EVM-compatible execution chain). However, the BNB Beacon Chain will soon sunset, and all of its functionalities will be transferred to the BNB Smart Chain (BSC). 

NOTE: If you are a validator of the Beacon Chain, you must urgently migrate your tokens to BSC. Here is a guide that will help you with the migration process.

The modern version of the BNB Chain is a multichain architecture consisting of three major components:

• BSC: A layer-1 platform that offers robust EVM compatibility and a Proof-of-Stake Authority consensus model.
• opBNB: A Layer 2 solution built using the OP Stack. Delivering high performance, processing 5-10K TPS
• BNB Greenfield: Focuses on decentralized data storage with enhanced privacy and security.

These three chains combine into one cohesive solution called “One BNB.” The BNB token fuels this overall ecosystem.

The Evolution of BNB Token

BNB stands for "Build and Build." Along with fueling transactions on BNB Chain (similar to gas on Ethereum), BNB acts as a governance token. Holding BNB grants the right to participate in BNB Chain’s decentralized on-chain governance.

BNB was launched through an Initial Coin Offering (ICO) from June 26th to July 3rd, 2017, just before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. Initially issued as an ERC-20 token on the Ethereum network, BNB later transitioned to the BNB Chain during its mainnet launch on April 18, 2019.

BNB Burns

BNB employs an Auto-Burn system to gradually reduce its total supply to 100,000,000 BNB. The burn amount is adjusted based on BNB's price and the number of blocks generated on BSC during a quarter, ensuring transparency and predictability. 

You can track the burn stats here.

BNB Chain also has a “BNB Pioneer Burn Program,” which reimburses users for lost coins in eligible cases, counting these toward the official burn count.

Additionally, BNB implements a real-time burning mechanism based on gas fees. BSC validators determine the ratio of gas fees collected in each block, which is burned at a fixed rate.

Previously, BNB Chain successfully completed its 27th Burn event. Here are the details from the latest burn:

• Auto-Burn (Total BNB burned): 1,944,452.51 BNB
• Approximate value in USD around the time of burn: ~$1.17B
• Transaction ID (TXID) for BNB burn: View transaction
• BNB burned from the Pioneer Burn Program: Nil

BNB Use Cases

BNB token use cases can be roughly broken down into these three categories:

• Decentralized use cases
• Centralized use cases
• Other use cases

Decentralized Use Cases

Pay transaction fees

Being the utility token of the BNB Chain ecosystem, users must pay transaction fees in BNB to interact with BNB Smart Chain (BSC) and opBNB.

Explore Dapps

BNB Chain has over 5,000 Dapps (decentralized applications) that you can explore. You can use BNB to interact with these decentralized applications, pay transaction fees, and complete a host of other actions while interacting with these applications.

Earn in Dapps

Some of these Dapps on BNB Chain even allow you to win rewards and earn yield. For example, you can try some of the gaming apps and earn BNB and other tokens by completing quests.

Stake and earn a passive income

Staking BNB enables holders to support BSC operations by using their tokens to verify transactions, aid in decentralized governance, and enhance network stability. In exchange for their staked assets, participants receive rewards in BNB.

Governance

Holding and staking BNB also allows you to participate in the governance of the BNB Chain. This means you can have a say in how the network is run, what changes should be adopted, and the project’s future direction. As a BNB holder, you can vote on proposals that can have a profound impact on the network, such as changes to the fee structure, new features, or changes to existing features.

Pay DEX Fees

BNB Chain has a rich ecosystem of DeFi applications, including decentralized exchanges such as PancakeSwap. The BNB token is your gateway to the BNB Chain ecosystem. Interact with our DEXes and pay your fees with BNB.

Centralized Use Cases

Save on trading fees

Holding BNB allows users to enjoy discounted trading fees on Binance and qualify for its VIP program, further reducing costs and offering exclusive benefits based on trading volume and BNB balance.

Exclusive token sales

BNB holders can access exclusive token sales featuring early-stage blockchain projects on Binance Launchpad. BNB plays a crucial role in the introduction of new projects on the Binance Launchpad, acting as a key driver of engagement during token sales.

Shop using BNB

Besides allowing holders to get discounts and access token sales, BNB can also be used for shopping. You can use Binance Pay to shop online using BNB or send crypto to other users worldwide.

Liquidity rewards

Binance Liquid Swap is a liquidity pool product offered by Binance. BNB holders can pool their tokens and earn yield by providing liquidity to DeFi markets and protocols in the Binance ecosystem and access an easy avenue to earn liquidity. 

Lending BNB

BNB holders can engage in token farming opportunities on Binance Launchpool, a platform that allows users to stake their BNB and earn tokens from new projects. Launchpool gives BNB holders an excellent avenue to participate in the early stages of a project and earn rewards while doing so.

Stake BNB in BNB Vault

BNB holders can stake their BNB in the BNB Vault and enjoy an array of benefits. The BNB Vault is a yield aggregator that allows users to earn various rewards within the Binance ecosystem through a single action, encompassing Simple Earn Flexible rewards, Launchpool rewards, and others.

Borrow crypto

Binance offers several lending services through its Binance loan platform, allowing users to borrow funds against their crypto holdings. BNB holders can apply for crypto loans, use their BNB as collateral, and access flexible loan options.

Other Use Cases

Book flights and hotels

BNB can also be used to book flights, hotels, and more on platforms such as Travala.com. All you have to do is select your travel product (flight, hotel), enter the requisite details, and pay using BNB. Travala is not the only company that accepts BNB as payment. Others accepting BNB as payment include HostMeNow, Coinsbee, and TravelbyBit.

E-Commerce payments

BNB can be used to pay for goods and services on e-commerce platforms, including at Shopify merchants (via Lunu).

Entertainment

Participate in a host of games and activities and win BNB rewards. For example, Binance periodically hosts events like this. If you successfully participate, you can win rewards in BNB and other tokens.  

Services

Pay for real-world 
and digital services with BNB. You can even get paid in, or pay with, BNB for freelance work.

Finance

Loan, trade, invest 
, and pay for expenses with BNB. If you find a willing party, you can use your BNB as a normal payment token to avail of financial services.

Where to Get BNB?

Most purchases of BNB occur in the secondary market, such as Binance and other crypto platforms. Here are some ways to acquire BNB:

• Centralized Exchanges (CEX): Buy BNB on CEXes and transfer to your wallet address.
• Decentralized Exchanges (DEX): Buy BNB on DEXes and transfer to your wallet address.
• Earn BNB: Earn BNB by working for DAOs, crypto-paying companies, or through bounty programs.
• Wallets: Purchase BNB using credit/debit cards via wallets like Trust Wallet.
• Receive from Peers: Share your wallet address to receive BNB from friends.
• Staking Rewards: Stake BNB to earn more BNB or run a validator node.

Conclusion

The BNB token has grown to become one of the cornerstones of a continually evolving decentralized ecosystem. With a wide array of use cases and robust tokenomics, BNB is set to empower users globally, foster innovation, and build a resilient, interconnected blockchain community.