BNB was initially created as an ERC20 token on the Ethereum network in July 2017, when Binance launched its initial coin offering for the exchange it had built. The crypto token has since moved to Binance Chain as the latterâs native token in 2019. A parallel smart contract blockchain called Binance Smart Chain was created in 2020, also using BNB as its base token.
How BNB works
Binance created BNB with a 200 million BNB token supply, a figure that decreases over time due to quarterly token burns based on the companyâs revenues and profits. The company said that this burning mechanism encourages token supply scarcity for the tokens. As it transitioned from an ERC20 token to the native asset on the Binance Smart Chain, BNB also became the basis of payment for the use of the blockchain to make smart contracts and the payment of fees for transactions. Recently, #TradeNTell
