BNB is the native token of BNB Chain and the token most closely tied to the Binance exchange. It started in 2017 as a way to get discounts on Binance trading fees and is now mainly used to pay gas on BNB Smart Chain, one of the busiest smart contract networks. The network's own site, bnbchain.org, is the primary reference.
A Short History
Binance sold BNB in an initial coin offering in July 2017, shortly before the exchange opened. The token was first issued as an ERC-20 token on Ethereum, with a total supply of 200 million.
In 2019 Binance launched its own blockchain, Binance Chain, and moved BNB onto it. That chain was built for fast trading and did not support smart contracts. In September 2020 a second chain, Binance Smart Chain (BSC), went live. BSC is compatible with the Ethereum Virtual Machine, so developers could deploy Ethereum applications on it with few changes.
In February 2022 the project was renamed BNB Chain, and the ticker's meaning changed from "Binance Coin" to "Build and Build". The original Binance Chain, by then called the Beacon Chain, was later retired, and its functions were merged into BNB Smart Chain.
What BNB Is Used For
- Gas: every transaction on BNB Smart Chain and opBNB pays its fee in BNB.
- Staking: BNB is staked or delegated to validators to secure the chain and to vote in governance.
- Exchange benefits: Binance offers trading fee discounts and access to token launch programs to BNB holders. These terms are set by Binance and can change.
- DeFi collateral: BNB is widely used in lending markets and liquidity pools on BNB Chain.
How BNB Smart Chain Works
BNB Smart Chain uses a consensus design called Proof of Staked Authority. Validators are elected by the amount of BNB staked with them, and a small active set takes turns producing blocks. The BNB Smart Chain documentation describes the design.
A small validator set is the reason the chain is fast and cheap. It is also the main criticism. With a few dozen validators, BNB Smart Chain is far more centralized than Ethereum, which has a very large validator set, and control is concentrated among fewer operators.
Blocks were originally produced about every three seconds. Upgrades in 2025 cut block time to under one second. Fees are low, usually a few cents or less for a simple transaction.
Because BSC runs the same contract code as Ethereum, wallets such as MetaMask work on it, and addresses look identical on both networks. PancakeSwap, the largest decentralized exchange on the chain, and Venus, a lending protocol, are among its best-known applications.
opBNB and the Wider Stack
opBNB is a Layer 2 network on top of BNB Smart Chain, launched in 2023 and built with the OP Stack, the same software used by Optimism. It offers lower fees for high-volume uses such as games.
Token Burns and Supply
BNB's supply is designed to fall over time. Binance originally committed to burn tokens each quarter until half of the 200 million supply was destroyed, leaving 100 million.
There are now two mechanisms:
- Auto-Burn: introduced in December 2021. Each quarter a formula sets the amount to burn, based on the BNB price and the number of blocks produced on BNB Smart Chain. It replaced the earlier method, which was tied to Binance's own business results.
- Real-time burn (BEP-95): a portion of the gas fees from every block is burned automatically.
Burn amounts and remaining supply are published on the BNB burn tracker. The burn reduces supply. It does not guarantee anything about price, which also depends on demand.
BNB vs Ethereum
- Fees: BNB Smart Chain is cheaper than Ethereum mainnet. Ethereum Layer 2 networks have narrowed that gap.
- Decentralization: Ethereum has far more validators and independent client software.
- Ecosystem: Ethereum has the deepest DeFi liquidity and the most developers. BNB Chain has a large retail user base, helped by its link to Binance.
- Compatibility: both run EVM contracts, so many projects deploy on both.
The Binance Connection
BNB's value is tied closely to Binance, which has been the largest crypto exchange by trading volume for years. Binance created the token, holds a significant amount of it and provides much of its utility.
That link cuts both ways. In November 2023 Binance agreed to pay about 4.3 billion dollars to settle US criminal and civil cases over anti-money-laundering and sanctions violations. Founder Changpeng Zhao pleaded guilty to a related charge, stepped down as chief executive and was succeeded by Richard Teng. Zhao was sentenced to four months in prison in 2024.
Anyone holding BNB carries exposure to Binance's regulatory and business position as well as to activity on the chain.
Risks to Understand
- Centralization: a small validator set and heavy dependence on one company.
- Regulation: actions against Binance in any major market can affect BNB.
- Scams: low fees make it cheap to launch fraudulent tokens. BNB Chain has seen many rug pulls and exploits.
- Bridge risk: in October 2022 an exploit of the chain's cross-chain bridge created about 2 million BNB, and validators halted the chain to contain it.
- Wrong-network transfers: because addresses match Ethereum's, sending funds on the wrong network is a common and costly error.
Nothing in this article is financial advice.
Key BNB Facts
- Launched: July 2017, by initial coin offering
- Initial supply: 200 million BNB
- Supply target: 100 million BNB through burns
- BNB Smart Chain launch: September 2020
- Consensus: Proof of Staked Authority
- Renamed BNB Chain: February 2022
Track on CoinMarketGuy
The BNB price page shows the live price, market cap, circulating supply and chart. For tokens trading on BNB Chain, the DEX page lists active liquidity pools with volume and liquidity. Binance and other venues are listed on the exchanges page.