Binance Coin (BNB) Tokenomics
Binance Coin (BNB) Information
What is Binance Coin? BNB powers the Binance ecosystem and is the native asset of the Binance Chain. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for a fee reduction on the Binance exchange, its scope was extended over the years. BNB powers the Binance Chain as its native chain token. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets. BNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from “go-ethereum”. It supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”), which incorporates elements from both Proof of Stake and Proof of Authority. BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators. Besides its on-chain functions, BNB has multiple additional use-cases such as fee discounts on multiple exchanges (e.g., Binance.com), payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.
Binance Coin (BNB) Tokenomics & Price Analysis
Explore key tokenomics and price data for Binance Coin (BNB), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of Binance Coin (BNB)
Dive deeper into how BNB tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Issuance Mechanism
- Initial Supply: BNB was launched with a maximum supply of 200 million tokens.
- Pre-mine: All tokens were pre-mined at genesis.
- Burn Mechanisms: BNB employs two main burn mechanisms:
- Auto-Burn: A quarterly, formula-based burn that reduces supply based on BNB price and BSC block production. The goal is to reduce total supply to 100 million BNB.
- Real-Time Burn (BEP-95): A portion of gas fees on BNB Smart Chain is burned in real time, further reducing supply.
- Pioneer Burn: Lost tokens (due to user error) can be covered by the Pioneer Burn Program and included in quarterly burns.
- No Ongoing Minting: After genesis, no new BNB tokens are minted; supply only decreases via burns.
Allocation Mechanism
At genesis, the 200 million BNB tokens were allocated as follows:
| Allocation | Amount (BNB) | % of Total | Unlock Schedule / Notes |
|---|---|---|---|
| ICO | 100,000,000 | 50% | Distributed to public investors after ICO (within 5 days) |
| Founding Team | 80,000,000 | 40% | 20% at genesis, then 20% annually for 4 years (cliff) |
| Angel Investors | 20,000,000 | 10% | Not specified |
- Public Sale (ICO): Held June 30–July 20, 2017. 100 million BNB sold, raising $15 million.
- Founders: 80 million BNB, with a 5-year vesting schedule (20% at genesis, then 20% per year).
- Angel Investors: 20 million BNB, details not fully specified.
Usage and Incentive Mechanism
BNB is a multi-utility token with the following uses and incentives:
- Network Utility:
- Gas fees on BNB Smart Chain, opBNB, and BNB Greenfield.
- Payment for deploying smart contracts and un-jailing validators.
- Staking and Delegation:
- Validators must self-stake at least 2,000 BNB to be eligible.
- Tokenholders can delegate BNB to validators and share in transaction fee rewards.
- Validators and delegators are rewarded daily from transaction fees.
- Exchange Utility:
- Used for trading fee discounts on Binance (25% for spot, 10% for futures).
- DeFi and CeFi:
- Used in BNB Vault, Launchpad, and Earn products for yield and event rewards.
- Liquid staking providers (e.g., ListaDAO, Stader, pStake) allow users to stake BNB and receive liquid tokens for use in DeFi.
- Incentive Programs:
- TVL incentive programs, bug bounties, grant programs, and referral rewards.
- BNB is used as a reward in ecosystem growth and security initiatives.
Locking Mechanism
- Founding Team: 80 million BNB subject to a 5-year vesting schedule (20% at genesis, then 20% per year).
- Angel Investors: Locking details not fully specified.
- ICO: Tokens distributed within 5 days post-ICO; no lockup.
- Staking/Delegation: Unbonding period of 7 days for staked BNB.
- DeFi Products: Locking periods vary by product (e.g., Simple Earn: 15–120 days).
Unlocking Time
| Allocation | Unlock Start | Unlock End | Unlock Details |
|---|---|---|---|
| Founding Team | 2017-07-28 | 2021-07-28 | 20% at genesis, then 20% annually for 4 years |
| Angel Investors | 2017-07-28 | 2021-07-28 | Not specified |
| ICO | 2017-07-28 | 2017-08-04 | Within 5 working days after ICO |
Summary Table
| Allocation | Amount (BNB) | % of Total | Unlock Schedule / Notes |
|---|---|---|---|
| ICO | 100,000,000 | 50% | Distributed to public investors after ICO (within 5 days) |
| Founding Team | 80,000,000 | 40% | 20% at genesis, then 20% annually for 4 years (cliff) |
| Angel Investors | 20,000,000 | 10% | Not specified |
Additional Notes
- Deflationary Model: BNB’s supply is strictly deflationary due to regular burns.
- No Governance Rights: BNB does not confer legal claims, voting rights, or profit-sharing in Binance or its affiliates.
- Network Security: BNB is central to the PoSA consensus, incentivizing validators and delegators.
- Ecosystem Growth: BNB is used to incentivize DeFi, dApp development, and user participation through various programs.
This comprehensive overview covers BNB’s token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms, with a focus on transparency and the latest available data.
Binance Coin (BNB) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of Binance Coin (BNB) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of BNB tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many BNB tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand BNB's tokenomics, explore BNB token's live price!
How to Buy BNB
Interested in adding Binance Coin (BNB) to your portfolio? MEXC supports various methods to buy BNB, including credit cards, bank transfers, and peer-to-peer trading. Whether you're a beginner or pro, MEXC makes crypto buying easy and secure.
Binance Coin (BNB) Price History
Analyzing the price history of BNB helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
BNB Price Prediction
Want to know where BNB might be heading? Our BNB price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
Why Should You Choose MEXC?
MEXC is one of the world's top crypto exchanges, trusted by millions of users globally. Whether you're a beginner or a pro, MEXC is your easiest way to crypto.
Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
Buy Binance Coin (BNB)
Amount
1 BNB = 877.06 USD