Binance Coin (BNB) Cryptocurrency and Blockchain Guide
What is Binance Coin (BNB)?
Binance coin (BNB) is a cryptocurrency token issued by popular cryptocurrency exchanges, Binance. Users can pay trading fees with BNB token to receive discounts when they trade digital coins on its exchange or use it as key based asset and gas to be spent on the newer Binance Decentralized Exchange.
Full name: Binance Coin
Chinese Name: 幣安币
Ticker Symbol: BNB
Coin Price: Latest BNB Price
Founder: Zhao Changpeng
Prominent Group: Binance
Consensus Algorithm: Proof-of-Stake (PoS)
Max Coin Supply： 187,536,713 BNB (Subject to coin burn)
Block Explorer: explorer.binance.org
Binance was founded by Zhao Changpeng (present CEO) in 2017 and was developed to be a ecosystem for its exchange and native cryptocurrency. BNB token is Binance's native coin with the BEP2 token standard and runs on Binance Chain (Blockchain) replacing the previous Ethereum based ERC-20 BNB cryptocurrency after its mainnet (main network) was launched.
Binance trading fee is 0.1% standard, but traders get a further 50% discount if they have sufficient BNB coins to pay off the fees, which will be deducted from their balance automatically. The fee discount will be reduced gradually over the next few years after sign up as shown in table below.
Trading Fees Discount Rate
Year 1: 50%
Year 2: 25%
Year 3: 12.5%
Year 4: 6.75%
Year 5 and onwards: No discount
There is a referral program in Binance where users are rewarded with 20% of trading fees from their referred friends as commission. If a user holds more than 500 BNB tokens, his/her commission rate will be increase to 40% from 20%. This new referral policy caused a sudden spike in BNB price and is still in effect as of September 2019.
Binance announced in its whitepaper that it will use 20% profits every quarter to purchase back and burn off BNB coins from the circulating supply until half or 50% of the total coin supply (100 million) is burned. The team informed that the purpose of the coin burn is to stabilize the coin price.
With an initial 200 million circulating coin supply, Binance reached cryptocurrency market cap of more than $3.1 billion USD as of 17th September 2019.
CryptoGuide is not related to the Binance team and its product. The above information is subject to change depending on the progress and possible modification of the ecosystem or policies by the Binance team.
Binance Coin Reviews
[Rating: 3.6 ]
★ ★ ★ ★
If you are a trader using Binance exchange, BNB tokens are must have. It reduces half of your trading fees for the first year. Discounts will gradually reduce for the next few years but is still significant and attractive.
Tom Walker (15/04/2019 04:04:22 PM):
★ ★ ★ ★
With Binance DEX coming, I predict it will become huge and will increase the demand of BNB as gas and trading. BNB is looking good in the long run.
Crypto Moon (27/07/2019 10:11:33 PM):
★ ★ ★
If you hold more than 500 BNB tokens, you earn up to 40% commission rate in trading fees for finding referrals. Not bad, but Binance trading fee is already very low to earn a good deal of commissions unless you can refer a whale. Not to forget BNB prices are subjected to speculations from traders as well and may go up or down.
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