BNB started in 2017 as a token issued by the Binance exchange, originally offering trading fee discounts to its users. Over time, it expanded well beyond that single purpose and now serves as the native token of BNB Chain, a blockchain ecosystem that supports its own decentralized applications, separate from the Binance exchange itself.
Holders of BNB can use it to pay for transaction fees on BNB Chain, participate in token launches on the Binance platform, and access various fee reductions across Binance products. This combination of exchange utility and blockchain-native use has helped it remain among the largest cryptocurrencies by market capitalization for years.
A notable feature of BNB is its periodic token burn, where a portion of tokens is permanently removed from circulation, which the project has used as a mechanism intended to reduce total supply over time.
Frequently Asked Questions
Is BNB the same as Binance the company?
No. Binance is the company and exchange, while BNB is a cryptocurrency token that now operates on its own blockchain, BNB Chain, with uses that extend beyond the Binance exchange itself.
What is a token burn?
A token burn is when a project permanently removes a number of tokens from circulation, often by sending them to an address no one can access, which reduces the total available supply going forward.
