What is BNB (Binance)? What do you know about this encryption

BNB (previously known as Binance Coin) is the original digital origin of the BNB series, a Blockchain ecosystem with a wide range of use cases. BNB is a benefit icon, as it is used in many different functions of the BNB series, which Form From the Blockchains BNB smart series, BNB Greenfield and OPBNB.

What is BNB?

As a coin, BNB offers several purposes. More specifically, users can harness it Payment transactions fees With a reduced rate and Interact With projects on the platform. They can also Use In governance, and benefit from them to make decisions that involve projects and protocols.

In addition, users can a class BNB, help secure the network and gain rewards in this process. To participate, users have to hold their BNB, which means that they cannot sell or circulate for a certain period.

Moreover, users can use BNB to take advantage of Airdrops, where they receive digital assets associated with new projects. To take advantage of this, users can Subscribe to BNB To Binance Simple Consure, which will allow them to receive distinctive symbols from several different mechanisms.

Understand BNB

BNB History

Binance appeared in 2017 when it was Sold By viewing an initial currency (ICO). A total of 200 million units of this digital origin CreatedAnd 100 million were sold via ICO. 20 million other units were allocated to owners investors and 80 million were issued to the founding team. Originally, Binance Coin was an ERC-20 symbol available on Ethereum Blockchain.

In April 2019, Binance Absolute Binance, Blockchain chain for its own. In the same month, the Stock Exchange revealed that it would allow users to deport their Binance to the new Blockchain, and that it will create BNB codes where the Binance currency has been eliminated.

Moving to the Binance and Binance Smart Chain series

The Binance series appeared for the first time in 2019. It was later It was renamed BNB lighthouse series. Originally, it was the primary goal of the Binance series Support Decentralized exchange (DeX) and allow this exchange to support a large number of transactions.

However, the Binance series lacked smart contract functions, so BnB Smart Chain, which allowed developers to implement smart contracts, Released To be beside that. Since then, the developers Publishing thousands of DAPS On the BNB Smart series (BSC). At the time of writing this report, there was More than 2000 Among these decentralized programs in this particular series.

Distinguished symbol burns and reduce the width

BNB series Burn Distinguished code units BNB after a set of bases. Over time, the total offer from BNB will decrease to 100 million units, a 50 % decrease from the original amount. Blockchain ecosystem uses many burning mechanisms. One is a mechanism of burning in real time, which is Remove Part of the gas fees in each individual block. Bachelor’s investigators have the exact amount of gas fees to determine the exact amount of gas fees.

Blockchain ecosystem as well He has A quarterly burning, a function of the number of blocks created in a quarter and also the average BNB price during this time frame. At the time of writing this report, approximately 60 million units of BNB BurnedLeave the total offer at about 140 million units.

The main features of BNB

The original code

BNB is the original digital origin of the BNB series, which is a Blockchain ecosystem capable of supporting many different types of activity. BNB users make fun of many different purposes, including paying trading fees, governance (decision -making on the Blockchain) and integrity. Users can also get Airdroped by subscribing to their BNB to Binance Simple Conn.

Reduced trading fees

By harnessing BNB, users can reduce trading fees. More specifically, they can Reduce For futures trading and stain/margin trading by up to 10 % and 25 %, respectively. Users should be in mind that getting some of the largest discounts It involves trading large sums From BNB, whether this amount is measured in BNB units or US dollars.

Burning mechanism

BNB He has A unique burning feature, which is designed to reduce the total offer to 100 million units over time. The Binance series features multiple burning mechanisms, which are designed to gradually reduce the show until it reaches the minimum level of 100 million units. By burning symbols, the Binance series can increase the value of these digital assets, assuming that the demand has not changed.

Use BNB cases

Binance trading discounts

Users can benefit from BNB to Get on Low trading fees. More specifically, the use of the original digital assets of this Blockchain ecological system can reduce future trading fees by up to 10 % and spot/margin fees by up to 25 %. However, users should be borne in mind that the most severe discount levels require a large trading volume.

Participate in Binance Launchpad

Interested investors can use BNB partner In Binance Launchpad, a platform that the projects can use to raise funds by maintaining symbolic sales called initial exchange offers (IEOS). To participate in one of these IEO, the user will need to subscribe (or link) a certain amount of BNB. Binance Launchpad, launched in 2019, helps reduce many risks associated with primary currency shows (ICOS). It also provides users access to exclusive sales of digital assets.

To participate in selling digital codes, the user must subscribe (or imprison) BNB during the subscription period. More specifically, they need BNB in ​​their Binance wallet and then subscribe to selling a specific code.

Participate in Binance Launchpool

BNB holders also have the ability to participate in Binance Launchpool, which Rewards People to stand up to current digital currencies. In addition to specific Stablecoins, the interested parties can connect their BNB, in addition to specific stablecoins, in order to obtain digital symbols associated with specific projects. Users have the ability to choose individual projects, or bnB (or other digital assets), then earn an expected annual percentage of Binance Launchpool, which Binance presented in 2020.

Use in Defi projects

The presence of BNB allows users to interact with a wide range of Defi projects. As of October 2024, more than 5000 DAPS It was hosted On the BNB series, according to the Binance Post blog that was published in that month. By obtaining this original digital asset, users can take advantage of the above applications, which include exchanges or decentralized Dexes. Users can use BNB to interact with these exchanges and pay their fees.

BNB benefits

Countless cases of use

BNB has many different use cases as a metal currency and a code of governance. Users can harness to interact with a wide range of applications. They can also use it for transactions discounts. As a symbol of governance, users can harness it Make decisions It involves possible changes for the BNB series.

Exclusive arrival for sale code

Users can also take advantage of BNB Get access To exclusive sales of digital symbols through Binance Launchpad called IEOS. These shows provide greater security than many ICO that came before, which have suffered many problems such as fraud.

Evaluation opportunities

BNB also Provides opportunities for installationWhere users can connect their digital assets in exchange for bonuses. By locking your BNB, you can help secure a chain BNB network and also earn a regular return.

Possible risks of BNB

Competition from other platforms

The encryption space is a home for important innovation, which has led to a wealth of new projects. At the same time, it poses a threat to the most firm platforms such as Binance and its BNB Blockchain chain, which is displayed from new competitors and tissues.

The speculative origin

BNB can be considered one of the purely speculative assets. It does not provide investors with property rights in Binance. It is not like a share of corporate shares, as it is not supported by banks ’revenues or profits. It also does not make fixed interest payments like bonds. As a result, its value depends entirely on what people want to pay for that.

Organizational concerns

The organizational environment surrounding digital currencies is risky with uncertainty. While governments have provided some clarity, there are many things that the organizers have not yet done. For example, while the American Securities and Stock Exchange Committee has identified some digital assets as securities, they did not provide this clarity for all encrypted currencies.

The bottom line

BNB has many cases of use and great dependence, but at the same time, it is one of the purely speculative assets that are not supported by revenues, profits, or guaranteed interest payments. Investors must take into account these factors when considering BNB.