In addition, the newly launched Binance Smart Chain introduces several additional use-cases for BNB. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets. Some of its on-chain use-cases related to the Binance DEX, and its function as gas fees on the Binance Chain. īNB powers the Binance Chain as its native chain token. įollowing the successful launch of Binance Chain in May 2018, BNB has pivoted to become the native asset of Binance Chain, working similarly to ether (ETH) for the Ethereum blockchain. For the full breakdown, please visit the BNB use-cases page. Its third party set of use-cases ranges from booking websites to financial services. Third-party uses: BNB can be used on multiple platforms and services that are independently run by global companies. It has been one of the first quote assets on the exchange, alongside stablecoins (e.g., USDT), BTC, and ETH. Quote currency on Binance: BNB has been used as an asset for trading cryptocurrencies on Binance. Unique participation rights: BNB can be used for additional services on the exchange, such as participation rights to Launchpad events (IEOs) and tickets for community listing voting rights. Initially, BNB provided a 50% discount on transaction fees, but it was later reduced to 25% as per the original whitepaper. At its core, BNB has been used for the following functions:Įxchange fee discount: since the launch of Binance, transaction fees on the exchange paid in BNB have been subject to a discount. īNB was initially issued as an asset to function within the Binance website and its broader ecosystem. From its initial maximum supply of 200 million, burns are expected to continue until the supply reaches 100 million. BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators.īesides its on-chain functions, BNB has multiple additional use-cases such as fee discounts on multiple exchanges (e.g., ), payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.Īt the core of the economics of BNB, there is a burn mechanism leading to period reductions in its total supply (~ every three months). It supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”), which incorporates elements from both Proof of Stake and Proof of Authority. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.īNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from “go-ethereum”. Designed to be used for a fee reduction on the Binance exchange, its scope was extended over the years.īNB powers the Binance Chain as its native chain token. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. BNB powers the Binance ecosystem and is the native asset of the Binance Chain.
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