Binance Coin (BNB) is a token issued following the ICO held by the Binance cryptocurrency exchange. The BNB token was issued on the Ethereum blockchain and follows the ERC20 token standard. The total number of tokens issued is 200 million. According to its documentation, Binance plans to use 20% of its profit each quarter to buy back and burn Binance Coin, until up to 50% of the total BNB supply (100 million) has been destroyed.
The BNB token itself has several useful properties, acting mainly as the "gas" (the means of paying fees) that powers the Binance exchange ecosystem. At present BNB can be used to pay for:
- Trading fees on the exchange, with the equivalent of a 50% discount on trades (during the first year).
- Monaco has added support for the BNB token on its platform, which includes the Monaco Visa card and a mobile app.
- The Uplive platform supports BNB for buying virtual gifts.
In the future Binance will build a decentralized cryptocurrency exchange, where BNB will be used both as one of the base assets and to pay "gas" (the service fee).
