About the Coin

Binance Coin (BNB) is the native cryptocurrency of the Binance platform, which is a trading platform exclusively for cryptocurrencies. The name Binance is a combination of binary and finance, indicating that only cryptocurrencies can be traded against each other on this platform. Binance has achieved significant success in a short period and is focused on the global market with its headquarters in Malta. The platform handles a daily trading volume of 1.5 billion to 2 billion US dollars, and this volume continues to grow.

Main Features

Binance Coin was created using the ERC20 token standard from Ethereum. The total supply of BNB is capped at 200 million coins. During its initial coin offering (ICO), 50% of the coins were sold, 40% were allocated to the team, and 10% were given to angel investors. BNB can be used to pay various fees on the Binance platform, including trading fees, transaction fees, and listing fees. Users receive significant discounts when fees are paid in BNB, with a structured discount schedule that decreases over time.

How it Works

The discount schedule for BNB fees is designed to incentivize users to purchase BNB and conduct trades on Binance. In the first year, users receive a 50% discount on all fees, which decreases to 25% in the second year, 12.5% in the third year, 6.75% in the fourth year, and no discount from the fifth year onwards. Binance also announced a buyback plan in Q1 2018, where it would buy back up to 100 million BNB and burn them. This process reduces the total supply of BNB, potentially increasing the value of the remaining coins, benefiting investors. In the future, BNB will continue to be an asset on the trading platform and will be used as gas.