$BNB
BNB, formerly known as Binance Coin, is the native cryptocurrency of the BNB Chain ecosystem, which includes the BNB Beacon Chain and BNB Smart Chain. Initially launched in July 2017 as an ERC-20 token on the Ethereum blockchain, BNB transitioned to Binance's proprietary blockchain in 2019.
Key Functions and Uses of BNB:
Transaction Fees: BNB is used to pay for transaction fees on the Binance Exchange, offering users discounts when fees are paid with BNB.
Gas Fees: It serves as the gas token for transactions on the BNB Smart Chain, facilitating operations within the network.
Payments: BNB can be used to pay for goods and services, both within and outside the BNB ecosystem, including travel bookings, entertainment, and online services.
Staking and Governance: Holders can stake BNB to participate in network validation processes and governance decisions, contributing to the security and development of the BNB Chain.
Supply and Burn Mechanism:
BNB was launched with a total supply of 200 million tokens. To manage supply and maintain value, Binance conducts quarterly "burns," where a portion of BNB tokens is permanently destroyed. This process continues until 100 million BNB remain. As of April 2024, the 27th quarterly burn destroyed approximately 1.94 million BNB, equivalent to $670.78 million.
