What is BNB?
BNB is the native cryptocurrency of BNB Chain, a multi-chain platform that supports decentralized applications (dApps), payments, and governance in the Web3 space.
- Multi-chain utility – BNB is used for transactions, governance, and rewards across BNB Smart Chain, opBNB Layer 2, and BNB Greenfield.
- Started as an exchange token – Originally launched in 2017 to offer Binance users trading fee discounts, BNB now powers a wider decentralized ecosystem.
- Deflationary design – An automatic burn mechanism gradually reduces the total supply from 200 million to a target of 100 million BNB.
Deep Dive
1. Purpose & Value
BNB is the core currency of BNB Chain, a decentralized network designed for scalability and easy access. It is used for:
- Paying transaction fees: BNB covers costs for running smart contracts, trading on decentralized exchanges like PancakeSwap, or storing data on BNB Greenfield.
- Governance: BNB holders can stake their tokens to vote on network upgrades and funding decisions (BNB Chain Blog).
- Ecosystem rewards: BNB is distributed as rewards for staking, liquidity mining, and exclusive token sales such as those on Binance Launchpad.
2. Technology & Structure
BNB Chain consists of three main components:
- BNB Smart Chain (BSC): A Layer 1 blockchain compatible with Ethereum’s technology, supporting decentralized finance (DeFi) and NFTs, handling about 2,000 transactions per second with low fees around $0.01.
- opBNB: A Layer 2 solution that uses optimistic rollups to improve scalability, ideal for gaming and apps requiring fast, frequent transactions.
- BNB Greenfield: A decentralized storage network designed for AI data and tokenizing real-world assets.
3. Tokenomics & Governance
- Supply control: An automatic burn system reduces BNB supply based on network activity and market price — for example, 1.94 million BNB (worth $1.17 billion) was burned in the first quarter of 2025.
- Real-Time Burn: A portion of transaction fees (gas fees) is destroyed with each block (BNB Burn Documentation).
- Decentralized governance: Validators stake BNB to secure the network, and proposals require approval from over 50% of voters to pass.
Conclusion
BNB has evolved from a simple exchange token into a multi-chain asset that supports governance and transactions across one of the most active crypto ecosystems. Its deflationary supply model and growing range of uses—from decentralized finance to AI infrastructure—make it a foundational element of Web3. Could BNB’s expanding role in tokenizing real-world assets take its utility beyond just trading and speculation?