What Is BNB?

BNB (originally Binance Coin) is the native cryptocurrency of the BNB Chain ecosystem and the Binance cryptocurrency exchange. It was created by Changpeng Zhao (commonly known as "CZ"), who founded Binance in 2017 after previously working in high-frequency trading systems and serving as CTO of the cryptocurrency exchange OKCoin. BNB was launched through an initial coin offering (ICO) in July 2017 that raised approximately $15 million. The token was originally issued as an ERC-20 token on Ethereum before migrating to its own blockchain in April 2019. BNB consistently ranks among the top 5 cryptocurrencies by market capitalization.

Overview - Table of Contents
What Is BNB?
Getting Started With BNB
How To Get A BNB Wallet?
BNB Resources
How To Buy BNB?
Latest BNB News

BNB Chain Architecture

BNB Chain is an EVM-compatible smart contract platform that has attracted a large user base due to its low transaction fees and fast block times (approximately three seconds). The ecosystem consists of two main chains: the BNB Smart Chain (BSC) for smart contracts and DeFi applications, and the BNB Beacon Chain for governance and staking. BNB Chain uses a Proof of Staked Authority (PoSA) consensus mechanism that combines delegated proof of stake with proof of authority, enabling high throughput with a limited validator set of 21 active validators. This design trades some decentralization for speed and low costs, which has made it popular for applications where low fees matter more than maximum censorship resistance.

Token Utility and Fee Discounts

On the Binance exchange, BNB provides utility through trading fee discounts, participation in token launches (Binance Launchpad), and payment for various exchange services. When BNB first launched, Binance offered a graduated fee discount schedule for users who paid trading fees in BNB: 50% off in year one, 25% in year two, 12.5% in year three, and 6.75% in year four. This incentive structure drove early adoption of the token. BNB also functions as the gas token for all transactions on BNB Chain, similar to how ETH functions on Ethereum. This dual utility — both as an exchange token and a blockchain's native currency — distinguishes BNB from most other cryptocurrencies.

Token Supply and Burns

The initial total supply of BNB was 200 million tokens, distributed as 50% through the public ICO, 40% to the founding team, and 10% to early angel investors. Binance conducts quarterly "auto-burn" events where BNB tokens are permanently destroyed based on a formula tied to the token's price and block production on BNB Chain. This deflationary mechanism is designed to reduce the total supply to 100 million over time. Each burn is verifiable on-chain, and Binance publishes a detailed report after every event. The burns replaced an earlier model announced in early 2018 where Binance committed to spending 20% of its quarterly profits on buying back and burning BNB.

Ecosystem

The BNB Chain ecosystem hosts a large number of DeFi protocols, NFT platforms, and gaming applications. PancakeSwap is the largest decentralized exchange on BNB Chain, while Venus Protocol leads in lending and borrowing. The ecosystem benefits from its large user base, particularly in Asia, and from Binance's extensive support and marketing. Binance also developed Trust Wallet, a popular mobile wallet that natively supports BNB and all BEP-20 tokens, and operates Binance Launchpad, which has hosted token sales for dozens of new projects, giving BNB holders early access to new tokens.

Getting Started With BNB

Getting started with BNB is straightforward:

Step 1: Choose a wallet. MetaMask (configured for BNB Chain) or Trust Wallet are the most popular options.
Step 2: Purchase BNB on Binance or another major exchange.
Step 3: Transfer BNB to your wallet on the BNB Smart Chain network.
Step 4: Use BNB to pay for transactions, explore DeFi on PancakeSwap, or stake for rewards.

How to Get a BNB Wallet?

Trust Wallet

Trust Wallet is a mobile wallet developed by Binance that natively supports BNB and BNB Chain. It provides a simple interface for managing BNB, BEP-20 tokens, and NFTs. Trust Wallet also includes a built-in DApp browser for accessing BNB Chain applications. Available for iOS and Android.

MetaMask

MetaMask can be configured to work with BNB Smart Chain by adding the network manually or through Chainlist. Because BNB Chain is EVM-compatible, MetaMask works seamlessly with all BNB Chain DApps and tokens. Many users prefer MetaMask as it supports multiple EVM-compatible networks including Ethereum and BNB Chain simultaneously, making it easy to switch between ecosystems.

Hardware Wallets

Ledger hardware wallets support BNB and BNB Chain tokens. You can manage BNB through Ledger Live or use Ledger with MetaMask for secure transaction signing on BNB Chain applications.

BNB Resources

How to Buy BNB?

BNB is available on many major exchanges. When Binance first launched in 2017, it operated as a crypto-to-crypto exchange only (no fiat currency trading), but has since added extensive fiat on-ramps.

Centralized Exchanges

BNB can be purchased directly on Binance with fiat currency or other cryptocurrencies. It is also available on other exchanges including Coinbase, Kraken, and KuCoin. When withdrawing, select the BNB Smart Chain (BEP-20) network if you intend to use BNB with DeFi applications on the chain, or the BNB Beacon Chain (BEP-2) network for governance and staking purposes.

Decentralized Exchanges

On BNB Chain, PancakeSwap is the largest DEX where you can swap other tokens for BNB. If you are on Ethereum or another network, cross-chain bridges allow you to move assets to BNB Chain. Always verify you are using the official bridge or a well-established third-party bridge to avoid scams.

Latest BNB News

BNB Chain continues to be one of the most active smart contract platforms by transaction count and unique addresses. The ecosystem has focused on improving decentralization, scalability through opBNB (its Layer 2 solution built on the Optimism OP Stack), and expanding into areas like AI and real-world asset tokenization. In November 2023, Binance founder CZ pleaded guilty to violations of the Bank Secrecy Act and stepped down as CEO, with Richard Teng succeeding him. Despite these regulatory challenges, BNB Chain maintains a large and active developer and user community, and remains a leading platform for affordable smart contract execution.