Binance Coin (BNB) is the cryptocurrency created by Binance exchange, the world’s largest centralized cryptocurrency exchange (CEX) by trading volume, with over USD $14 billion in volume daily.

BNB is a utility token that can be traded like any other cryptocurrency, but that can also be used to pay for goods and services, participate in token sales, buy virtual gifts, reduce trading fees, make loans and transfers and make credit card payments.

Binance coin started life on the Ethereum blockchain as an ERC20 token but has since moved over to Binance’s own blockchain, called Binance Chain.

The Binance Chain is made up of two blockchains both using BNB:

  • BNB Beacon Chain – handles BNB Chain governance
  • BNB Smart Chain (BSC) – uses Ethereum Virtual Machine (EVM) to support smart contracts and works with Ethereum DApps.

BNB was launched in 2017 during an initial coin offering of 200 million BNB tokens.

The ICO process broke down the token distribution as follows:

  • 10% to angel investors
  • 40% to the founding team
  • 50% to other participants

BNB uses an auto-burn mechanism every quarter to adjust the BNB total supply to 100,000,000 BNB.

BNB also uses the Binance Evolution Proposal (BEP)-95 to burn around 860 BND daily.

The purpose of this is to reduce supply and maximize the value of the tokens that are left.

Binance Coin holders are provided a long-term growth plan that’s planned out in advance.