What is BNB?

As the biggest cryptocurrency exchange, the Binance exchange issues its own exchange and blockchain’s tokens, called BNB. BNB is the cryptocurrency token that powers the BNB Chain ecosystem and benefited the Binance exchange’s users. BNB fast adoption began when the BNB Chain (formerly, Binance Smart Chain or BSC) was deployed back in 2020.

As of now, according to Coingecko data, BNB token is the top 5 crypto asset with largest market capitalization. The BNB chain on the other hand is the top 3 smart contract blockchain being used by crypto investors according to Defillama data.



BNB cryptocurrency token first launched in 2017 using the initial coin offering (ICO) method. One-third of the ICO funding is being used by Binance to build and enhance the Binance exchange. BNB is one of the exchange’s successful tokens that boost the adoption of crypto assets within the exchange by giving the users a discount for trading in the Binance exchange and as a means of payment for variety of Binance products.

Originally in 2017, BNB token live on the Ethereum network. Binance decided to deploy their own native public blockchain called the BNB Beacon Chain (BEP-2) in 2019. In the same year, all of BNB supply of 200 million tokens migrated into the Beacon Chain (BEP-2), while all of the BNB supply on the Ethereum network was burnt. Before migrating into the Beacon Chain, BNB adopted the burning mechanism to reduce its supply and increase its scarcity in order to increase the value of the BNB tokens.

To increase the utility of BNB token further, Binance added smart contract capabilities to its blockchain which evolved the BEP-2 token standard to Ethereum virtual machine compatibility standard (BEP-20 token standard). On Binance BEP-20 Chain, the blockchain can execute smart contracts functions which open the door for many Web3 developers to build their project on the BNB Chain.

BNB Blockchains:

  • BNB blockchain with BEP-2 token standard called BNB Beacon Chain (Formerly, Binance Chain).

Wallet addresses on this blockchain begin with ‘bnb’ and require Memo to transfer funds.

  • BNB blockchain with BEP-20 token standard called BNB Chain (Formerly, Binance Smart Chain or BSC)

Wallet addresses on this blockchain begin with ‘0x’ and are compatible with EVM.


BNB Use Cases


  • Reduce trading fees on Binance Exchange;
  • Pay for trading fee on Binance DEX;
  • Pay for transaction fee on the Binance Beacon Chain (BEP-2) and Binance Chain (BEP-20)


  • Pay for goods and services both online and in-store purchases by Binance Pay or Binance Card
  • Pay for hotels, flights, and other booking at
  • Donate funds on Binance Charity


  • As a Community utility token on the BNB Chain ecosystem
  • Participate in potential token sales on the Binance Launchpad
  • Provide liquidity and earn commission on Binance Liquid Swap
  • Speculate on BNB value as adoption and token’s scarcity increases


Burning Mechanism

Since live on the Ethereum network, BNB token was applied token burn policy to reduce the circulating supply of the token. Token burn is a process of permanently removing cryptocurrencies from circulation, reducing its total or circulating supply. After BNB token migrates from the Ethereum network, the token burn process occurs on the Binance Chain periodically.

The BNB token burn occurs on a quarterly basis since Q4 2017. Previously, Binance burned a total token based on its average daily trading volume, however according to Binance founder, Changpeng Zhao (CZ), the token burn rate was way slower than expected. In order to accelerate the BNB burn, Binance introduced the auto-burn mechanism that burns BNB token based on the number of blocks created in the BNB chain compared to its price.

BNB Quarterly Burn (previously):

Binance manually bought back BNB tokens on a quarterly basis with 20% of their exchange’s quarterly profits and burned that BNB afterward.

BNB Auto-Burn:

The burn amount calculated from BNB price and its blockchains number of blocks produced. The cheaper BNB tokens value and the slower its blockchain generated blocks being produced, the more BNB token amount gets burned. The more expensive BNB tokens value and the faster its blockchain generated blocks, the less BNB token amount gets burned. This mechanism is automatically executed without the need for Binance exchange to manually buy back the token.

BNB token burn mechanism will occur until the total supply of BNB tokens reaches 100 million tokens or 50% of BNB token initial supply back from its inception of 200 million tokens in 2017.

BNB initial supply = 200 million tokens

BNB final supply = 100 million tokens


BNB Tokenomics

BNB has the initial supply of 200 million tokens, 40% of which is allocated to the founding team for development and marketing purposes. Another 10% is allocated for the angel investors which participated in token ICO back in 2017. The 50% rest of the tokens allocated to circulating around the public for Binance and its blockchain usage.

The 40% of allocated BNB for the founding team is distributed by 20% for each year until 2022.

Now, BNB token ranked top 5 in crypto largest market cap with more than $40 billion valuation from 162 million circulating supply of BNB token

The Initial token distribution of BNB token:

50% is allocated to Community

40% is allocated to Team

10% is allocated to Investors

BNB has an initial supply of 200 million tokens which will be burned until the supply reaches 100 million or 50% of its initial supply. Thus making BNB token as a deflationary token which decreases in total supply number but hopefully will increase its token value.

There are roughly 1% – 1,5% of BNB total supply being burned every year.


BNB Advantages

One of the largest market capitalization cryptocurrency
Useful token for Binance exchange operation
Useful token for BNB Chain dApps
Allow users to earn commission or passive income through Binance and its blockchain product
BNB Chain has cheaper transaction network fee compare to Ethereum network
As a mean of payment for Binance exchange products
Allow users to join early potential token sale through Launchpad
Unique burning mechanism


How to Buy BNB?

To get some BNB, you can simply buy them directly on NOBI app. You can also check BNB’s real-time price here. Not only buy-sell crypto assets, you can also grow your favorite crypto assets on NOBI, including BNB. You could hold your coins while earning attractive rewards on NOBI Earn. What’s more, it’s an easy way to earn by simply holding crypto assets. Check out NOBI Earn and start earning rewards today!

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