BNB (Binance Coin)

BNB (Binance Coin) is the native cryptocurrency of the Binance ecosystem.
Launched in 2017, BNB started as a utility token for discounted trading fees on the Binance exchange. Today, it powers the BNB Chain and is one of the most widely used crypto assets.

What is BNB?

BNB was originally issued as an ERC-20 token on Ethereum, but later migrated to its own blockchain: BNB Chain (made of BNB Beacon Chain and BNB Smart Chain).
It serves as both a utility token and a gas token for the network.

Launch year: 2017
Issuer: Binance
Blockchain: BNB Chain (Beacon Chain + Smart Chain)
Native token: BNB

How Does BNB Work?

Exchange utility: used for trading fee discounts on Binance.
Gas fees: powers transactions on BNB Smart Chain (BSC).
Burns: Binance regularly burns BNB to reduce supply and increase scarcity.
Staking: users can stake BNB to secure the network and earn rewards.
Ecosystem growth: supports DeFi, NFTs, and gaming on BNB Chain.

Why is BNB Important?

Mass adoption: Binance is the largest crypto exchange globally.
DeFi ecosystem: thousands of projects run on BNB Smart Chain.
Lower fees: cheaper transactions compared to Ethereum.
Token burns: deflationary model reduces supply over time.

BNB Use Cases

Trading fees: discounts on Binance spot, futures, and margin trading.
Payments: accepted by merchants and services integrated with Binance Pay.
DeFi & NFTs: used in liquidity pools, lending, and NFT marketplaces.
Staking & governance: secure the network and vote on proposals.

Risks of BNB

Centralization: Binance holds significant influence over BNB.
Regulation: Binance faces regulatory pressure worldwide.
Competition: rivals like Ethereum and Solana dominate smart contract markets.
Exchange dependency: BNB’s value is tied to Binance’s success.

Lanzo Tip 🪙

BNB is more than an exchange token — it’s the backbone of the BNB Chain. If you trade on Binance or explore DeFi on BSC, BNB is almost unavoidable. But always keep an eye on regulation risks.