BNB (BNB), originally known as Binance Coin, is the native cryptocurrency of the BNB Chain ecosystem, encompassing the Binance Exchange, Binance Chain, and Binance Smart Chain (BSC).
Launched in 2017 through an Initial Coin Offering (ICO), BNB was initially an ERC-20 token on the Ethereum blockchain before migrating to Binance's own blockchain in April 2019. The creation of BNB was driven by the need for a utility token that could be used within the Binance platform to pay for trading fees, transaction fees, and even participation in token sales hosted on Binance's Launchpad.
BNB, a utility and governance token, facilitates operations across Binance's range of products and services. BNB holders can receive discounts on trading fees, participate in exclusive token sales, among other benefits within the ecosystem. The introduction of the BNB Chain further expanded BNB's utility by enabling smart contract functionality and the creation of decentralized applications (dApps) on the platform.
Binance conducts quarterly burns of BNB, using a portion of their profits to purchase and permanently destroy BNB tokens, thereby reducing the supply with the aim to increase the token's value. This deflationary mechanism is detailed in the Binance whitepaper and is part of Binance's commitment to reducing the total token supply to 100 million BNB. wow
