What is BNB?

Binance Coin is the crypto-coin issued by Binance exchange, and trades with the BNB symbol. BNB tokens was launched through an Initial Coin Offering (or ICO) that took place from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading.

The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB.

BNB was issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million BNBs were offered in the ICO, but the current total supply is lower than that due to the periodic burning events.
Although initially based on the Ethereum network, the ERC-20 BNB tokens will be swapped with BEP2 BNB on a 1:1 ratio. The new BNB is the native coin of the main Binance Chain, and the main net launch was announced on April 18th.

How to Use?

For instance, you can use BNB to pay for your travel expenses, buy virtual gifts, and much more. But let’s take a look at how BNB can help you with trading fees. When trading on the Binance Exchange, each trade will incur in a standard fee of 0.1% (trading fees are determined by your monthly trading volume and BNB holdings). You can either pay the trading fees using the assets you are trading or you can pay for them with BNB. If you choose to pay in BNB, you will get a special discount on your trading fees.

Therefore, if you trade a lot on Binance, you should consider getting more BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a specific schedule, so make sure to check the current spot trading Fee Schedule. It’s also worth noting that the Binance Futures platform follows a slightly different Fee Schedule.

BNB still has a lot more for the future. Stay tuned for more news about upcoming features!