What Is BNB (Binance Coin)? Complete Guide
Everything you need to know about BNB — Binance's native token. Use cases, tokenomics, fee discounts, and investment thesis.
BNB Overview
BNB (originally Binance Coin) is the native cryptocurrency of the Binance ecosystem. It has multiple use cases both on and off the exchange.
Key BNB Use Cases
1. Trading Fee Discounts
Pay Binance trading fees with BNB for 25% off. Combined with referral discount, you pay ~0.06%.
2. BNB Chain Gas Token
BNB is used to pay transaction fees on BNB Chain (formerly Binance Smart Chain) — one of the most popular blockchains for DeFi.
3. Binance Launchpad
Hold BNB to participate in new token sales on Binance Launchpad. These often provide significant returns.
4. Binance Earn
Stake BNB for yield through Binance Earn products.
5. Payments
BNB is accepted by various merchants and can be used with Binance Pay.
Tokenomics
| Metric | Value |
|---|---|
| Max supply | 200M BNB |
| Current supply | ~150M (decreasing) |
| Burn mechanism | Quarterly auto-burn |
| Target | Burn until 100M BNB remain |
BNB Auto-Burn
Binance burns BNB quarterly based on BNB Chain block production and BNB price. This reduces supply over time, which is potentially bullish for long-term value.
Should You Hold BNB?
For fee discounts: Yes, hold enough to cover your trading fees (small amount).
As an investment: BNB’s value is tied to Binance’s success. Consider:
- Binance is the #1 exchange by volume
- BNB Chain has a large DeFi ecosystem
- Regular supply burns reduce circulation
- But: regulatory risks affect Binance and BNB
How Much BNB to Hold
| Purpose | Amount |
|---|---|
| Fee discount only | $10-100 worth |
| VIP 1 qualification | 25 BNB |
| Launchpad participation | Varies by sale |
Get 20% Off Binance Trading Fees with RATE20
New to Binance? Open the official signup page with RATE20 already applied for a 20% trading-fee discount. You do not need to copy or type the code. Review the referral details before completing registration.
- Referral code: RATE20, pre-applied by this link
- Fee discount: 20%, shown on the Binance signup screen
- Additional rewards: Check Binance for current promotions and regional availability
Be wary of unofficial referral offers promising benefits they cannot show. The Binance signup screen lets you check the code and fee discount directly.
Compare Binance fees and available discounts →
SmallDrift may earn a commission when you sign up through this link. Trading involves risk, including loss of capital.
Related Articles
Explore Related Guides
Daily Crypto Market News
Follow Bitcoin price moves, major altcoins, and the events shaping the market.
Bitcoin ETF Flows Guide
Understand ETF inflows and outflows, and how to read them alongside price action.
Binance Fee Calculator
Learn how to estimate trading costs with referral and BNB discounts.
Verified Binance Referral Guide
See how RATE20 is applied and what to check on the Binance signup screen.