What is BNB (BNB)?
BNB (originally Binance Coin) is the native cryptocurrency of the Binance ecosystem and BNB Chain, one of the world's most active blockchain networks. Launched in 2017, BNB powers transaction fees, DeFi applications, and staking across the Binance exchange and BNB Smart Chain ecosystem.
Key Facts
What is BNB?
BNB is the native cryptocurrency of the Binance ecosystem, originally launched in 2017 through an Initial Coin Offering that raised $15 million. What began as a utility token for trading fee discounts on the Binance exchange has evolved into a multi-purpose asset powering one of the largest blockchain ecosystems in cryptocurrency. BNB operates on BNB Chain, which includes BNB Smart Chain for smart contracts and decentralized applications, making it comparable to Ethereum in functionality but with faster transactions and lower fees.
The BNB Chain ecosystem has grown to host thousands of decentralized applications spanning DeFi protocols, NFT marketplaces, and gaming platforms. Major projects like PancakeSwap, Venus Protocol, and numerous gaming applications run on BNB Smart Chain, attracted by its EVM compatibility that allows Ethereum developers to port applications with minimal changes.
The network processes millions of transactions daily, making it one of the most active blockchains by usage metrics.
What distinguishes BNB from many cryptocurrencies is its aggressive deflationary tokenomics. Through quarterly Auto-Burn events and real-time gas fee burns, over 60 million BNB have been permanently removed from circulation since 2022-a reduction of roughly 30% from the original supply.
The protocol targets a final supply of 100 million BNB, down from 200 million at launch, creating increasing scarcity as the ecosystem grows.
Who Created BNB? A Brief History
Origins and Founding
BNB was created by Changpeng Zhao, known as CZ, a Chinese-Canadian entrepreneur who previously served as CTO at OKCoin and worked at Bloomberg developing trading systems. After investing in Bitcoin in 2013, CZ envisioned building the world's fastest and most user-friendly cryptocurrency exchange. The BNB Initial Coin Offering ran from June 26 to July 3, 2017, selling 100 million tokens at $0.15 each. Just 11 days after the ICO ended, Binance exchange went live, and within six months it became the world's largest crypto exchange by trading volume-a position it has maintained for most of its history.
Key Milestones
- • 2017: BNB ICO raises $15 million; launches as ERC-20 token on Ethereum; Binance exchange goes live.
- • 2019: BNB migrates from Ethereum to Binance Chain (now BNB Beacon Chain) with 1:1 token swap.
- • 2020: BNB Smart Chain launches with EVM compatibility; rapid DeFi adoption during "DeFi Summer."
- • 2022: Auto-Burn mechanism replaces manual quarterly burns; BSC Bridge hack of $586 million (partially recovered).
- • 2023: CZ pleads guilty to Bank Secrecy Act violations; Binance pays $4.3 billion settlement.
- • 2024: CZ serves four months in federal prison; opBNB layer-2 solution launches.
- • 2025: CZ receives presidential pardon; VanEck files first US spot BNB ETF application.
BNB Chain Today
BNB Chain operates as a dual-chain architecture: BNB Beacon Chain handles governance and staking, while BNB Smart Chain powers smart contracts and dApps. The network is secured by 21 elected validators through Proof-of-Staked-Authority consensus. While Binance remains the most influential entity in the ecosystem, BNB Chain operates as open-source software with an independent validator set.
Richard Teng succeeded CZ as Binance CEO in 2023, while CZ maintains a significant BNB position and advisory role.
How BNB Works
BNB operates on a dual-chain system designed to balance speed, scalability, and functionality. The architecture enables fast, low-cost transactions while supporting the full range of smart contract capabilities that developers expect from modern blockchains.
Dual-Chain Architecture
BNB Chain consists of two parallel layers. BNB Beacon Chain (formerly Binance Chain) handles governance, validator elections, and staking operations with a simplified consensus model optimized for fast, low-cost transfers. BNB Smart Chain provides full EVM compatibility for smart contracts, DeFi protocols, and NFTs.
The two chains communicate through cross-chain bridges, allowing assets to move between layers depending on use case. An additional layer-2 solution called opBNB, launched in 2024, offers even lower fees for ultra-high-volume applications like gaming and micropayments.
Proof-of-Staked-Authority (PoSA)
BNB Smart Chain uses PoSA, a hybrid consensus combining Delegated Proof-of-Stake and Proof-of-Authority. At any time, 21 validators are elected to produce blocks in rotation based on the total BNB staked to them. Validators must self-stake a minimum of 2,000-10,000 BNB and run full node infrastructure. The network produces blocks approximately every 3 seconds, enabling fast transaction finality compared to Ethereum's 12-15 seconds or Bitcoin's 10 minutes. Validators who misbehave can have their stake slashed as a penalty.
EVM Compatibility
BNB Smart Chain is fully compatible with the Ethereum Virtual Machine, meaning Ethereum smart contracts can be deployed on BSC with minimal modification. Developers use familiar tools like MetaMask, Remix, and Hardhat. This compatibility accelerated BSC's adoption, allowing projects to port successful Ethereum applications to a lower-cost environment.
Cross-chain bridges to Ethereum, Bitcoin, and other blockchains enable asset transfers across ecosystems.
Deflationary Token Burns
BNB's distinctive feature is its aggressive supply reduction. The Auto-Burn program permanently removes BNB from circulation every quarter using a formula based on blocks produced and average price-higher prices lead to larger burns, creating a self-reinforcing scarcity mechanism. Additionally, BEP-95 burns a portion of gas fees in real-time from every transaction.
Over 60 million BNB have been destroyed since the burn programs began, targeting an eventual supply of 100 million from the original 200 million.
How to Stake BNB
BNB uses Proof-of-Staked-Authority consensus, allowing holders to delegate their tokens to validators and earn staking rewards. Staking is non-custodial-your BNB never leaves your wallet, and you maintain full control while earning passive income.
Native Staking
To stake natively, you delegate BNB to one of 21 active validators through the BNB Chain staking interface or compatible wallets like Trust Wallet and MetaMask. The minimum stake is 0.1 BNB with no upper limit. When you decide to unstake, there is a 7-day unbonding period before you can withdraw. Rewards are distributed daily at 00:00 UTC, with typical yields around 1.25% APY for direct staking.
Choose validators based on commission rates, uptime records, and stake distribution to minimize slashing risk.
Liquid Staking
Liquid staking protocols like Ankr (ankrBNB), Lista (slisBNB), and pStake (stkBNB) allow you to stake BNB while receiving a liquid token that represents your staked position. This liquid token can be used in DeFi-as collateral, in liquidity pools, or for yield farming-while still earning staking rewards. Combined yields can reach significantly higher than native staking alone.
However, liquid staking introduces smart contract risk and potential depegging risk if demand for the liquid token drops.
Exchange Staking
Binance and other exchanges offer custodial staking products through their earn programs. This is the easiest option since everything is handled by the platform, with flexible or locked staking products offering varying yields from 1-7% APY. However, you don't control your keys, meaning you're trusting the exchange's security and solvency.
For larger amounts or long-term holdings, native staking with self-custody provides more control.
Warning: All yield strategies carry risks including smart contract vulnerabilities, validator slashing, and platform failures. Research validators and protocols thoroughly before staking, and never stake more than you can afford to lose.
Why BNB Has Value
BNB derives value from its utility across the Binance ecosystem and BNB Chain. Every transaction on BNB Smart Chain requires BNB for gas fees, creating constant demand from the millions of daily transactions across DeFi protocols, NFT marketplaces, and gaming applications. On Binance exchange, BNB provides up to 25% trading fee discounts, incentivizing traders to hold and use the token.
Access to Binance Launchpad token sales requires BNB holdings, and Binance Pay enables BNB payments at thousands of merchants globally. This multi-layered utility creates demand from retail users, traders, developers, and institutions.
The deflationary tokenomics provide additional value support. Unlike inflationary cryptocurrencies that continuously issue new tokens, BNB's supply decreases over time through quarterly Auto-Burns and real-time gas fee burns. With over 60 million BNB already destroyed and a target of reducing supply to 100 million, each remaining BNB represents an increasing share of a shrinking supply.
This scarcity mechanism, combined with growing ecosystem usage, creates potential for value appreciation as demand outpaces available supply.
However, BNB carries significant risks. Binance and affiliated entities control approximately 50% of circulating supply, creating centralization concerns and potential for price influence. The 2023 regulatory settlement and CZ's subsequent imprisonment highlighted the legal risks associated with Binance's operations. BNB's value is tightly coupled to Binance's fortunes-regulatory restrictions or loss of user trust in the exchange would likely impact BNB demand. Competition from Ethereum's layer-2 solutions and other high-performance blockchains like Solana continues to intensify. BNB has experienced drawdowns exceeding 80% during bear markets, and volatility remains high.
How to Buy BNB
BNB is available on virtually every major cryptocurrency exchange, with the deepest liquidity naturally found on Binance itself. The process follows standard cryptocurrency purchasing steps.
1Choose an exchange
Binance offers the deepest liquidity and lowest fees (especially when paying with BNB), plus access to Launchpad and staking features. Alternatives include Coinbase, Kraken, KuCoin, and OKX. For decentralized options, PancakeSwap allows swapping other cryptocurrencies for BNB without KYC, though you'll need a wallet with existing crypto.
2Complete verification
Most centralized exchanges require identity verification before allowing fiat deposits. Provide government-issued ID, proof of address, and sometimes a selfie. Verification typically takes minutes to a few days depending on the exchange and your location.
3Deposit funds
Fund your account via bank transfer (lowest fees, takes 1-5 days), credit or debit card (instant but 3-5% fees), or by depositing existing cryptocurrency. You can then trade directly for BNB using pairs like BNB/USDT, BNB/USD, or BNB/BTC.
4Place your order and secure your BNB
Use a market order for immediate purchase at current price, or set a limit order to wait for your target price. For security, transfer BNB to a personal wallet where you control the private keys. When withdrawing, ensure you select the BEP-20 (BNB Smart Chain) network to avoid losing funds.
Next step: Compare BNB providers in your country to find the best price.
How to Store BNB
Custodial vs Self-Custody
With a custodial wallet on an exchange, the platform holds the private keys for you. This is convenient for active trading and accessing exchange features like Launchpad and staking products, but you must trust the platform's security and solvency. With self-custody, you control the private keys in your own wallet, giving you full ownership but also full responsibility for security and backups.
Many users combine both approaches based on their needs.
Software Wallets
Popular options include Trust Wallet (official Binance mobile wallet with native BNB Chain support), MetaMask (after adding BNB Smart Chain network), and SafePal. These wallets enable interaction with BSC dApps, staking, and DeFi protocols. When setting up any wallet, you'll receive a recovery phrase that must be backed up securely offline-anyone with this phrase can access your funds.
Hardware Wallets
For maximum security, especially for larger amounts, hardware wallets like Ledger Nano X, Ledger Nano S Plus, and Trezor Model T store private keys offline. SafePal S1 is specifically designed for the Binance ecosystem with an air-gapped design. Hardware wallets protect against malware and online attacks, though they cost money and are less convenient for frequent transactions.
Network Warning: BNB exists on multiple networks-BEP-20 (BNB Smart Chain), BEP-2 (Beacon Chain), and legacy ERC-20 (Ethereum). Most use cases require BEP-20. Always verify you're using the correct network when sending or receiving. Sending to the wrong network can result in permanent loss of funds.
How to Use BNB (BNB)
Trading Fee Discounts
BNB's original and still primary use case is paying trading fees on Binance exchange at a discount of up to 25%. Active traders can save significant amounts by holding and using BNB for fees. This utility creates consistent demand from Binance's massive user base and provides immediate, tangible value for BNB holders.
Transaction Fees on BNB Chain
Every transaction, smart contract interaction, and token transfer on BNB Smart Chain requires BNB for gas fees. Fees typically range from $0.05 to $0.20, making BSC significantly cheaper than Ethereum for most operations. This includes trading on PancakeSwap, lending on Venus Protocol, minting NFTs, and interacting with gaming applications.
DeFi and Collateral
BNB is widely used as collateral in BSC DeFi protocols. You can deposit BNB into Venus Protocol to borrow stablecoins or other assets, provide liquidity to PancakeSwap pools to earn trading fees, or participate in yield farming for additional token rewards. BNB's high liquidity and consistent demand make it a preferred collateral asset across the ecosystem.
Binance Launchpad Access
Holding or staking BNB provides access to exclusive token sales through Binance Launchpad. Major projects including Polygon, Axie Infinity, and The Sandbox launched through this platform. Allocation is typically based on the amount of BNB held or staked over a calculation period, creating incentive for long-term BNB holdings.
Payments and Commerce
Binance Pay enables BNB payments at thousands of merchants globally, and the Binance Visa debit card allows spending BNB anywhere Visa is accepted. Institutional adoption is growing, with over 30 public companies holding BNB in corporate treasuries as a reserve asset. Real-world payment use cases continue expanding through partnerships with payment processors worldwide.
Notable People in BNB
Unlike fully decentralized networks, BNB's development and ecosystem have been significantly influenced by Binance and its leadership. The company's decisions directly affect BNB's trajectory and market position.
Changpeng Zhao (CZ)
Founder and former CEO of Binance, CZ is the visionary behind BNB and one of the most influential figures in cryptocurrency. Born in China and raised in Canada, he developed trading systems for the Tokyo Stock Exchange and Bloomberg before entering crypto in 2013. After founding Binance in 2017, he built it into the world's largest crypto exchange.
CZ pleaded guilty to Bank Secrecy Act violations in 2023, served four months in prison in 2024, and received a presidential pardon in October 2025. He remains a major BNB holder and continues to influence the ecosystem through advisory roles.
Richard Teng
CEO of Binance since November 2023, succeeding CZ after the regulatory settlement. Teng previously served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market and as Singapore Exchange's Chief Regulatory Officer. His regulatory background positions him to navigate Binance's compliance challenges and rebuild trust with regulators globally.
Yi He
Co-founder and Chief Marketing Officer of Binance, Yi He has been instrumental in the company's growth strategy and community engagement since its founding. She previously worked at OKCoin and has been a key figure in expanding Binance's presence in Asia. She remains an executive at Binance and holds significant influence over ecosystem strategy.
The BNB Chain Core Team
BNB Chain development is led by a core team that maintains the protocol, coordinates with validators, and implements upgrades. While closely associated with Binance, BNB Chain operates as open-source software with contributions from developers worldwide. The team continues to expand the ecosystem through initiatives like opBNB for scaling and BNB Greenfield for decentralized storage.
Regulation Overview for BNB
BNB's regulatory status is closely tied to Binance's ongoing relationship with regulators worldwide. The 2023 settlement represented a significant milestone, but questions about BNB's classification and Binance's operations continue in various jurisdictions.
United States
In November 2023, Binance agreed to a $4.3 billion settlement with the DOJ, CFTC, and FinCEN over anti-money laundering violations. CZ pleaded guilty to Bank Secrecy Act violations and served four months in prison before receiving a presidential pardon in 2025.
The SEC has separately investigated whether BNB's 2017 ICO constituted an unregistered securities offering, though BNB's classification remains unclear. BNB is available on many US exchanges, though Binance.com itself is not available to US users (Binance.US operates as a separate entity).
European Union
Under the Markets in Crypto-Assets (MiCA) regulation, BNB falls under requirements for crypto-asset service providers. Binance has obtained licenses in several EU countries and continues working toward full MiCA compliance. BNB remains widely available on European exchanges and through Binance's regulated European entities.
Asia-Pacific
Regulatory treatment varies across Asia. Binance has obtained licenses in Dubai, Bahrain, and Kazakhstan. Japan and Singapore have stricter requirements that have affected Binance's operations in those markets. Australia's AUSTRAC oversees crypto exchanges, and BNB is available through compliant platforms.
China continues to ban cryptocurrency trading, though Hong Kong has developed a regulatory framework that some exchanges are pursuing.
Canada
BNB is legal in Canada and available on registered crypto trading platforms. Binance itself withdrew from the Canadian market in 2023 due to new regulatory requirements, but BNB remains accessible through other licensed exchanges. Capital gains tax applies to BNB sales and trades.
Regulatory Note: BNB's status continues to evolve as global crypto regulations develop. The token's close association with Binance means regulatory actions against the exchange can directly impact BNB's availability and perception. Stay informed about developments in your jurisdiction.
FAQs About BNB (BNB)
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