BNB launched in 2017 as an ERC-20 utility token issued by Binance during its initial coin offering, originally used mainly for trading-fee discounts on the Binance exchange. It has since migrated to being the native gas token of BNB Chain (previously Binance Smart Chain), an EVM-compatible smart-contract network Binance launched in 2020, giving BNB a role well beyond its original exchange-discount use case.
Category
exchange-token
Consensus mechanism
Proof of Staked Authority (BNB Smart Chain)
Launched
2017
From exchange token to chain gas token
BNB Chain runs on a proof-of-staked-authority model: a limited, rotating set of validators — rather than an open, permissionless mining or staking pool of arbitrary size — produce blocks, which supporters argue enables fast, low-fee transactions and critics argue trades off some decentralisation compared with fully permissionless chains. BNB is the gas token used to pay fees on this network, alongside its original role in Binance's own fee-discount programme.
Burns and supply mechanics
Rather than a fixed emission schedule like Bitcoin's halving, BNB's supply changes primarily through periodic burn events, in which Binance removes tokens from circulation, funded historically by exchange profits and more recently by an auto-burn formula tied to on-chain metrics. There is no ongoing mining or staking issuance creating new BNB from a protocol subsidy the way there is for many layer-1s.
Tokenomics
| circulating-supply | — |
|---|---|
| max-supply | — |
| issuance-model | No new issuance; total supply is instead reduced over time via periodic token-burn events |
Last verified: 8 July 2026. before you rely on any figure — live circulating supply and market cap are never published here; check a live tracker.
Risks & criticisms
- BNB Chain's validator set is smaller and more curated than fully permissionless proof-of-work or large-scale proof-of-stake networks — a structural trade-off, not necessarily a defect, but worth understanding.
- BNB's value and utility are closely tied to Binance itself as a company and exchange, a different risk profile to an asset with no single associated corporate entity.
- Regulatory scrutiny of exchange-issued tokens has increased in several jurisdictions — check current local rules.
Where to buy
Related buying guide
→ BNB — related buying guideFrequently asked questions
What does BNB stand for?
It originally stood for Binance Coin; the exchange now generally refers to it simply as BNB.
Is BNB mined like Bitcoin?
No. BNB Chain uses a proof-of-staked-authority model with a limited validator set, and BNB's supply changes mainly through periodic burn events rather than mining rewards.
What is BNB used for besides Binance fee discounts?
It is the gas token for transactions and smart contracts on BNB Chain, an EVM-compatible network separate from the Binance exchange's own order-book systems.