How does Binance coin work?
BNB is built on the Ethereum blockchain according to the ERC20 standard and can store and retain value. The BNB digital currency cannot be mined since it has been previously mined and distributed through an ICO. BNB is used for discounted trading on the Binance trading platform. The discount rate started at 50% in the first year, but is scheduled to be cut in half each year. By year 5, there will be no discount that will affect the value of BNB. To combat the decline in value, Binance has been buying back and destroying its cryptocurrencies to reduce supply.
Cryptocurrency exchange Binance plans to phase out half of its BNB coins in circulation. As we told at the beginning of the article, the main goal of BNB is to support cryptocurrency exchanges and enable the Binance ecosystem to expand further. Currently, the BNB digital currency can be used for commercial discounts and in many stores and entities that accept it as a payment currency.
Binance has a lot of financial and strategic support, which can sustain the value of BNB for years to come. This means that the dominant altcoin landscape could change in the coming years. It can be a smart idea to bet on a currency backed by a platform that conducts and trades billions of dollars in transactions.