# BNB (BNB) > BNB is the cryptocurrency powering the Binance ecosystem, used for discounts, staking, governance, payments and DeFi services. - Canonical URL: https://iq.wiki/wiki/binance-coin - Categories: Cryptoassets - Created: 2022-08-11T11:58:11.612Z - Last updated: 2026-06-08T14:26:28.205Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **BNB** is the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) that powers the [Binance](https://iq.wiki/wiki/binance) ecosystem. As of October 2025, it was the third-largest digital asset by market capitalization. It can be used for discounts across the [Binance](https://iq.wiki/wiki/binance) ecosystem as well as [staking](https://iq.wiki/wiki/staking), governance, and settling transactions on [BNB Chain](https://iq.wiki/wiki/binance-smart-chain). [\[17\]](#cite-id-TobVSzrF6Y)​ The token can also be used for payments and [DeFi](https://iq.wiki/wiki/defi) services. The BNB Chain ecosystem consists of a tri-chain architecture: BNB Smart Chain (BSC), the EVM-compatible execution layer; opBNB, a Layer-2 scaling solution; and BNB Greenfield, a decentralized storage layer. [\[1\]](#cite-id-znh182yibt) [\[18\]](#cite-id-SZcGMMO3Wx)​ BNB is regularly [burned](https://iq.wiki/wiki/token-burn) and removed from the token supply through quarterly burning events with BNB Auto-Burn. When BNB is used as gas for transactions on the BNB chain a portion of the BNB used as gas is burned. [\[13\]](#cite-id-twkaalmzfh)​ ## History ​[Binance](https://iq.wiki/wiki/binance) originally created the tokens in order to raise capital through an [initial coin offering (ICO)](https://iq.wiki/wiki/initial-coin-offering). The coins were sold in the first week of the ICO in July 2017 at a price of 1 BNB for 15 cents each. [Binance](https://iq.wiki/wiki/binance) raised a total of $15 million in [Bitcoin](https://iq.wiki/wiki/bitcoin) (BTC) and [Ethereum](https://iq.wiki/wiki/ethereum) (ETH) from this ICO. From the $15 million raised, 35% was utilized to upgrade the [Binance](https://iq.wiki/wiki/binance) platform and exchange system, 50% was used for [Binance](https://iq.wiki/wiki/binance) branding, marketing, and education of new innovators and the remaining 15% was set aside as a reserve in case of any emergencies or unusual circumstances.[\[2\]](#cite-id-86k5yrv5m8g)​ BNB was originally presented as an [ERC-20 ](https://iq.wiki/wiki/erc-20)token on the [Ethereum](https://iq.wiki/wiki/ethereum) blockchain with a total supply of 200 million. In 2019, [Binance](https://iq.wiki/wiki/binance) started its mainnet swap and migrated all BNB tokens to [BNB Chain](https://iq.wiki/wiki/binance-smart-chain). [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) is composed of two blockchains, both powered by BNB: * BNB Beacon Chain: Previously called [Binance](https://iq.wiki/wiki/binance) Chain, this blockchain handles BNB Chain governance functions such as voting and staking. * [BNB Chain](https://iq.wiki/wiki/binance-smart-chain): Once known as the [Binance](https://iq.wiki/wiki/binance) Smart Chain, this blockchain uses the [Ethereum](https://iq.wiki/wiki/ethereum) Virtual Machine to support smart contracts and is fully compatible with Ethereum’s tools and [decentralized apps](https://iq.wiki/wiki/decentralized-application) (DApps).[\[13\]](#cite-id-twkaalmzfh) ## Utility The original value proposition of the BNB token was that users of the [Binance](https://iq.wiki/wiki/binance) exchange could access discounts on spot, margin, and futures trading fees by paying using the tokens. BNB tokens can also be used as gas for settling transactions on [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), staking on the chain, and as a governance token for the chain, allowing holders to participate in some of the project’s decision-making. [\[1\]](#cite-id-znh182yibt)​ The token offers access to several [Binance](https://iq.wiki/wiki/binance) services including further discounts through the [Binance](https://iq.wiki/wiki/binance) VIP program, lending for token farming through [Binance](https://iq.wiki/wiki/binance) Launchpool, sending and receiving payments through [Binance](https://iq.wiki/wiki/binance) Pay, earning yield by depositing BNB on certain [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) projects, earning referral fees through [Binance](https://iq.wiki/wiki/binance)'s referral program, access to token sales on [Binance](https://iq.wiki/wiki/binance) Launchpad, crypto loans through [Binance](https://iq.wiki/wiki/binance) Loan, staking rewards through with the BNB Vault, making purchases with the [Binance](https://iq.wiki/wiki/binance) Visa Card, as well as making donations through [Binance Charity](https://iq.wiki/wiki/binance-charity). [\[14\]](#cite-id-xs4eg0pepnf)​ On-chain, BNB is used as collateral, liquidity, and a governance token in various DeFi protocols, including [Aster](https://iq.wiki/wiki/aster), Venus, [PancakeSwap](https://iq.wiki/wiki/pancakeswap), and Lista DAO. Ecosystem programs like Launchpool and Megadrop provide holders with access to token launches and airdrops, which have been estimated to provide an annual value enhancement of 15-20%. [\[18\]](#cite-id-SZcGMMO3Wx)​ BNB is also accepted by several companies in the payment space including [Pundi X](https://iq.wiki/wiki/pundi-x), Monetha, HTC, Coinpayments, CoinGate, Coinify, and NOWPayments. It is also accepted by several travel, entertainment, service, and finance [decentralized applications](https://iq.wiki/wiki/decentralized-application) and companies. [\[14\]](#cite-id-xs4eg0pepnf)​ ## Ecosystem and Strategic Initiatives ### YZi Labs and the $1B Builder Fund In October 2025, investment firm YZi Labs announced a 500,000 in funding for selected projects. [\[17\]](#cite-id-TobVSzrF6Y)​ ### BNB Hack: Local Series In October 2025, [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) and Yzi Labs announced the "BNB Hack: Local Series," a global, city-to-city hackathon program scheduled to begin in November 2025. The series was designed to provide builders with access to the $1B Builder Fund and fast-track interviews for the Most Valuable Builder (MVB) Program. The initial series of two-day, in-person events was planned for Buenos Aires, Bangalore, Johor Bahru, Abu Dhabi, and Hong Kong, with more cities planned for 2026. [\[19\]](#cite-id-NgSRZdgeJt)​ ### Institutional Adoption and Financial Products The BNB ecosystem has seen increased interest from institutional and traditional finance entities. * **China Renaissance:** In August 2025, Hong Kong-listed financial institution China Renaissance Holdings announced a strategic partnership with YZi Labs that included an allocation of approximately $100 million to BNB. The collaboration aims to develop digital asset financial products, including a multi-hundred-million-dollar fund for tokenizing Real World Assets (RWAs) like real estate and bonds on [BNB Chain](https://iq.wiki/wiki/binance-smart-chain). [\[20\]](#cite-id-vKrUd3OxY5) [\[21\]](#cite-id-bXhudEo461) * **BNB Treasury Company:** In July 2025, investment firm 10X Capital announced an initiative, supported by YZi Labs, to establish the BNB Treasury Company. This independent, U.S.-based entity is designed to provide American investors with regulated exposure to the BNB token by pursuing a public listing on a major U.S. stock exchange. [\[22\]](#cite-id-2zCQTRvmdc) * **RWA Integration:** The [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) has also pursued RWA integration through collaborations with firms like [Ondo Finance](https://iq.wiki/wiki/ondo-finance) and Franklin Templeton for tokenized treasuries and the deployment of Circle's [USDC](https://iq.wiki/wiki/usdc) stablecoin. [\[18\]](#cite-id-SZcGMMO3Wx) ## BNB Burning There are two main ways in which BNB is [burned](https://iq.wiki/wiki/token-burn) and removed from the circulating supply. The first consists of quarterly BNB burning events. The second was introduced in the BEP-95 and involves burning a portion of the BNB spent as gas fees on the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain). [\[3\]](#cite-id-miqnofyeiob)​ The initial total supply of the token was 200,000,000 BNB. Through programmatic burns, the ecosystem targeted a final capped supply of 100 million BNB by October 27, 2025. As of October 26, 2025, over 64.3 million BNB, valued at approximately $72 billion at the time, had been burned from the historical supply. The BEP-95 mechanism will continue to burn BNB even after the 100 million supply target is reached. [\[18\]](#cite-id-SZcGMMO3Wx) [\[11\]](#cite-id-iio4hb7o0h8)​ Previously, the quarterly BNB burns were based on the BNB trading volume on the [Binance](https://iq.wiki/wiki/binance) exchange. But in December 2021, [Binance](https://iq.wiki/wiki/binance) announced the new BNB Auto-Burn. The BNB Auto-Burn mechanism automatically adjusts the amount of BNB to be burned based on the BNB price and the number of blocks generated on the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) during each quarter. This offers greater transparency and predictability to the BNB community. [\[11\]](#cite-id-iio4hb7o0h8)​ ### BNB Auto-Burn In December 2021, the [Binance](https://iq.wiki/wiki/binance) team announced that the quarterly burn would be replaced with BNB Auto-Burn to provide greater transparency and predictability to the BNB Community. BNB Auto-Burn will be independent of revenues generated on the [Binance](https://iq.wiki/wiki/binance) CEX through the use of BNB and will be automatically adjusted in that the burn amount will be based on the price of BNB, which, in turn, reflects the supply and demand for BNB, as well as the number of blocks produced during a quarter calculated on the basis of on-chain information. Once the total circulating supply of BNB falls below 100 million, the BNB Auto-Burn stops. [\[11\]](#cite-id-iio4hb7o0h8)​ ​[Binance](https://iq.wiki/wiki/binance) implemented its first-ever [BNB](https://iq.wiki/wiki/binance-coin) auto-burn program (18th burn) in December 2021, removing over 1.6 million BNB tokens worth $750 million from circulation.[\[12\]](#cite-id-8rjsa7tstge)​ On October 2022, [Binance](https://iq.wiki/wiki/binance) completed its 21st quarterly burn of BNB tokens automatically and took 2,065,152.42 BNB off the market.[\[6\]](#cite-id-kklyhpayg1f)​ ## BEP-95 In 2021, Binance's former CEO [CZ](https://iq.wiki/wiki/changpeng-zhao) shared a plan to accelerate BNB burns as the overall burning rate was slower than he originally anticipated. [\[16\]](#cite-id-5lti3ijr1sl) To accelerate the process, [Binance](https://iq.wiki/wiki/binance) introduced a new burning mechanism through the BEP-95 in November 2021. [\[3\]](#cite-id-miqnofyeiob)​ BEP-95 is a [Binance](https://iq.wiki/wiki/binance) Evolution Proposal that adds a real-time burning mechanism to the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain). The smart contract automatically burns a portion of the gas fees collected by validators from each block. As more people use the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), more BNB will be burned, speeding up the burning process. [\[15\]](#cite-id-dv3o76p3sf)​ As BEP-95 is solely dependent on the BNB Chain network, unlike BNB Auto-Burn, it will continue to burn BNB after the 100 million burn target has been reached. ## BNB Pioneer Burn Program ​[Binance](https://iq.wiki/wiki/binance) also has a program called the BNB Pioneer Burn Program. In eligible cases, users who lose tokens may be able to put them towards the official "burn" count and get reimbursed with new BNB. Eligible cases include mistakes concerning tokens worth more than $1,000 but less than the planned "burn" volume.[\[1\]](#cite-id-znh182yibt)​ [YOUTUBE@VID](LZrbaR_9JN0) ## BNB Mainnet Swap After the mainnet launch of [Binance](https://iq.wiki/wiki/binance) Chain, users were encouraged to migrate from the [Ethereum blockchain](https://iq.wiki/wiki/ethereum) to the [Binance](https://iq.wiki/wiki/binance) Chain. Therefore, [ERC-20](https://iq.wiki/wiki/erc-20) BNB token holders started to replace their tokens with the newly issued BEP2 BNB coin (the native coin of [Binance](https://iq.wiki/wiki/binance) Chain). The mainnet swap followed a 1:1 ratio so that 1 ERC-20 BNB had the same value as 1 BEP2 BNB. After the swap, all remaining ERC-20 BNB tokens were burned, so now only the BNB of the new chain can be used.[\[3\]](#cite-id-miqnofyeiob)​[\[4\]](#cite-id-bne6yo3al3l)​ ​[Binance](https://iq.wiki/wiki/binance) also allowed users to leave their previously issued tokens on their accounts, so the platform could automatically swap their tokens with native tokens.[\[5\]](#cite-id-rpi38wavhif)​ On April 23, 2019, [Changpeng Zhao](https://iq.wiki/wiki/changpeng-zhao) announced via Twitter, that BNB tokens were successfully migrated to the [Binance](https://iq.wiki/wiki/binance) Chain. He stated: > Just burned 5mm ERC20 BNB, commencing swap to the real #BNB. ## BNB Hack On October 6, 2022, transactions on the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) were halted after a potential exploit in the network was detected through a spike in "irregular activity." The initial announcement was posted to Twitter by [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) at 9:19 pm EDT, saying there would be a temporary pause on the BSC network. By 9:35 pm EDT, the network pause turned into a halt.[\[9\]](#cite-id-oxbxt4jvcsf)​[\[8\]](#cite-id-ow9uv5tn1ao) They further tweeted: > To confirm, we have suspended BSC after having determined a potential exploit. All systems are now contained, and we are immediately investigating the potential vulnerability. We know the Community will assist and help freeze any transfers. All funds are safe. According to blockchain security firm SlowMist, the hackers managed to steal over $570 million in crypto, including [Ethereum](https://iq.wiki/wiki/ethereum), [Polygon](https://iq.wiki/wiki/polygon), [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), [Avalanche](https://iq.wiki/wiki/avalanche), [Fantom](https://iq.wiki/wiki/fantom), [Arbitrum](https://iq.wiki/wiki/arbitrum), and [Optimism](https://iq.wiki/wiki/optimism).[\[23\]](#cite-id-AoLVkWlkbg)​ By 10:20 pm EDT, [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) said that 70 million and $80 million were stolen from the [Binance](https://iq.wiki/wiki/binance) Smart Chain: > Initial estimates for funds taken off BSC are between 80M. However, thanks to the community and our internal and external security partners, an estimated $7M has already been frozen. ​[Binance](https://iq.wiki/wiki/binance) former CEO [Changpeng Zhao](https://iq.wiki/wiki/changpeng-zhao) later posted an update pointing to a thread on Reddit where the company provided more technical details and said that "the current impact estimate is around $100m USD equivalent."[\[8\]](#cite-id-ow9uv5tn1ao)​[\[24\]](#cite-id-axvheLAmcj)​ ### Binance's Response On October 7, 2022, [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) released its first official statement thanking the community for its support during the incident, along with the next steps for ensuring future network security. In the statement, the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) Team owned up to the exploit and apologized to users. They also expressed gratitude to how quickly the issue was identified and resolved by the community: > UPDATE: Official BNB Chain Response. We're humbled by the support, hard work, and dedication from the community of which we are proud to be a part. In addition to official numbers related to the incident, the [BNB Chain](https://iq.wiki/wiki/binance-smart-chain) highlighted its next steps to ensure future network security against potential exploits: an on-chain governance vote would decide what to do with hacked funds, whether they should be frozen or not, and if BNB Auto-Burn should be implemented to cover the remaining exploited funds. The community would also vote on a bounty for catching hackers and a white-hat program for future bugs found which could be $1 million for each.[\[10\]](#cite-id-ncg0d8g4tvb)​ [YOUTUBE@VID](muc7RRQJAEI)