Summary
BNB is the native cryptocurrency of the BNB Chain ecosystem. It is used to pay network fees, participate in staking and governance, and interact with decentralized applications across BNB Smart Chain and the broader ecosystem. Originally launched on Ethereum in 2017, BNB later migrated to its own network and has grown beyond its original role as an exchange token. Investors can buy and sell BNB through an iTrustCapital Premium Custody Account for everyday investing or a tax-advantaged Crypto IRA.*
What is BNB?
Over the past decade, the crypto industry has seen many exchanges rise and fall, much like the companies of the dot-com era. One platform that has continued to grow is Binance, now recognized as one of the largest cryptocurrency exchanges in the world. As Binance expanded, it developed its own blockchain called BNB Chain, a blockchain network where developers can build decentralized applications and other blockchain-based projects. Along with the launch of this network came BNB, the cryptocurrency that powers it.
BNB is the native cryptocurrency of BNB Chain that powers transactions, smart contracts, and decentralized applications across the ecosystem. The BNB Chain network combines speed, scalability, and interoperability to power a wide range of blockchain applications. Designed for performance and accessibility, BNB Chain connects millions of users and developers through decentralized finance (DeFi), gaming, NFTs, and enterprise applications; all while maintaining low costs and high throughput. BNB functions as the fuel that powers this ecosystem, where every transaction, smart contract, and decentralized app (dApp) within the BNB Chain relies on BNB to operate efficiently.
BNB at a Glance
- Launch Year: 2017
- Original Blockchain: Ethereum (as an ERC-20 token)
- Current Blockchain: BNB Chain (native coin)
- Primary Use Cases: Transaction fees, staking, governance
- Token Burn Mechanism: Quarterly Auto-Burn to reduce supply
- Market Cap Ranking: Consistently among the top 5 cryptocurrencies by market capitalization
The History of BNB
BNB launched in 2017 as a token on the Ethereum network and was mainly used on the Binance exchange. Early buyers could get BNB at a rate of 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. As Binance grew into one of the world's largest exchanges, BNB quickly gained traction.
A few years later, in 2019, Binance introduced its own blockchain to improve speed and give developers more control. When BNB Chain went live, BNB moved off Ethereum and became the native coin of its own network. The rebrand in 2022 marked this shift, turning BNB from a simple exchange token into the main currency that powers a growing ecosystem of decentralized apps and projects.
Key Milestones
|
Year |
Milestone |
|
2017 |
BNB launches on Ethereum as an ERC-20 token |
|
2019 |
BNB Chain (formerly Binance Chain) goes live; BNB migrates to its own network |
|
2022 |
Rebrand from "Binance Coin" to "BNB" to reflect broader ecosystem utility |
Today, BNB plays a much bigger role in crypto. What started as a token for exchange fees has evolved into the foundation of an entire blockchain network, reflecting how far both Binance and the broader crypto industry have come.
BNB: The Native Currency
The cryptocurrency BNB serves multiple functions:
|
Use Case |
Description |
|
Network Fees |
Holding and using BNB allows users to pay transaction and smart-contract fees within the BNB Chain ecosystem. |
|
Staking & Governance |
BNB holders can stake their coins, support network security, delegate to validators, and participate in governance decisions. |
|
Tokenomics & Supply |
BNB uses mechanisms such as token burns—the permanent removal of tokens from circulation to reduce supply—to create scarcity and support value. For example, part of the gas fees collected on the chain is burned through the Auto-Burn mechanism. |
How Does BNB Token Burning Work?
BNB employs a quarterly Auto-Burn mechanism that permanently removes BNB tokens from circulation. The amount burned is calculated based on BNB's price and the number of blocks produced on BNB Chain during the quarter. This deflationary approach is designed to reduce the total supply over time, potentially increasing scarcity and supporting the token's long-term value.
Buy & Sell BNB (BNB) at iTrustCapital
If you're interested in buying and selling BNB (BNB), you can do so in a secure Premium Custody Account or tax-advantaged Crypto IRA* at iTrustCapital.
Click here to open an account today!
*Some taxes may apply.
Frequently Asked Questions
What is BNB used for?
BNB is the native cryptocurrency of the BNB Chain ecosystem. It is used to pay transaction and smart-contract fees, participate in staking and on-chain governance, and interact with applications built across the BNB ecosystem. BNB is used on networks including BNB Smart Chain, opBNB, and BNB Greenfield.
Is BNB the same as Binance Coin?
BNB was originally associated closely with Binance and was commonly known as Binance Coin. In 2022, the blockchain ecosystem was rebranded as BNB Chain, with BNB described as “Build and Build,” reflecting its broader use beyond the Binance exchange. Today, BNB serves as the native cryptocurrency powering the BNB Chain ecosystem.
What is the difference between BNB and BNB Chain?
BNB is the cryptocurrency, while BNB Chain is the broader blockchain ecosystem that BNB helps power. BNB is used for functions such as paying gas fees, staking, and governance. The ecosystem includes BNB Smart Chain, opBNB, and BNB Greenfield, each designed for different blockchain use cases.
How does the BNB burn work?
BNB uses multiple burn mechanisms designed to permanently remove coins from circulation. Its quarterly Auto-Burn calculates the amount to be burned using factors including BNB's price and the number of blocks produced on BNB Smart Chain, with the long-term goal of reducing total supply to 100 million BNB. Separately, BNB Smart Chain uses a real-time burn mechanism that destroys a portion of gas fees collected through network activity.
How many BNB are there?
BNB's supply has declined over time because coins are permanently removed through its burn mechanisms. BNB Chain's Auto-Burn program is designed to continue reducing total supply until it reaches 100 million BNB. Because burns occur over time, the current supply can change, so readers should check BNB Chain's latest burn data for the most recent figure.
Can you stake BNB?
Yes. BNB can be staked on BNB Chain, allowing participants to contribute to network security and potentially earn staking rewards. Staking also plays a role in BNB Chain's governance system because staking credit holders can participate in proposals and voting. However, BNB staking is not currently offered through iTrustCapital's staking program, which currently supports eligible ETH and SOL holdings.
Where can I buy BNB?
BNB can be purchased through platforms that support the asset. At iTrustCapital, BNB is currently available alongside more than 90 digital assets through both Crypto IRAs and non-retirement Premium Custody Accounts. A Crypto IRA can be used for retirement investing, while a PCA provides a non-IRA option for buying, selling, and holding supported crypto.
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Disclaimer
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