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.
BNB (Binance Coin) is the native token of the BNB Chain ecosystem, which includes both the BNB Smart Chain (BSC) and BNB Beacon Chain. Its token economics are defined by its issuance, allocation, usage, incentives, and locking/unlocking mechanisms. Below is a comprehensive breakdown:
Issuance Mechanism
- Initial Issuance: BNB was launched via an ICO on July 5, 2017, with a maximum supply of 200 million tokens.
- Distribution: Investors received BNB tokens within 5 working days after the ICO finished.
- Burn Mechanism: BNB employs a deflationary model, with regular token burns reducing the total supply. As of December 2024, the total supply is approximately 150.54 million BNB, down from the initial 200 million.
Allocation Mechanism
The initial allocation of BNB was as follows:
| Allocation Category | Mechanism / Schedule | Unlocking Timeframe |
|---|---|---|
| ICO Investors | Tokens distributed post-ICO | 2017-07-28 |
| Founding Team | 20% unlocked at genesis, then 20% annually for 4 years | 2017-07-28 to 2021-07-28 |
| Angel Investors | Not specified | 2017-07-28 |
- Founding Team: The team’s allocation was subject to a vesting schedule, with 20% unlocked at launch and the remainder released in equal annual tranches over four years.
- Angel Investors: Received their allocation at genesis, with no further details specified.
Usage and Incentive Mechanisms
BNB serves multiple purposes within the BNB Chain and Binance ecosystem:
- Transaction Fees: Used to pay for transaction fees on BNB Chain, often at a discounted rate.
- Staking and Delegation: Tokenholders can delegate BNB to validators to secure the network and earn rewards. Delegators can remove staked BNB with a seven-day unbonding period.
- Earning Platforms:
- BNB Vault: Users can lock BNB to earn aggregated rewards from Simple Earn and Launchpool features (e.g., ~0.18% APR as of December 2024).
- Simple Earn: BNB can be deposited for fixed terms (15–120 days) to earn varying APRs.
- Launchpad/Launchpool: BNB can be staked to earn new project tokens or event-specific rewards.
- Slashing: Validators are penalized (slashed) for misbehavior (e.g., double-signing or missing blocks), with BNB deducted as a penalty.
Locking and Unlocking Mechanisms
- Team and Early Investors: Subject to a cliff and vesting schedule, as detailed above.
- Staking/Delegation: Unbonding period of seven days for staked BNB.
- Earning Products: Locking periods vary by product (e.g., 15–120 days for Simple Earn).
- No Minimum/Maximum: Most staking/locking products do not enforce minimum or maximum amounts.
Unlocking Schedule Table
| Category | Locking Mechanism | Unlocking Start | Unlocking End | Notes |
|---|---|---|---|---|
| ICO Investors | Cliff | 2017-07-28 | 2017-07-28 | Immediate post-ICO distribution |
| Founding Team | Cliff/Vesting | 2017-07-28 | 2021-07-28 | 20% at genesis, 20% annually for 4 years |
| Angel Investors | Cliff | 2017-07-28 | 2017-07-28 | Immediate at genesis |
Token Supply and Burn
- Migration: BNB migrated from Ethereum (ERC-20) to BNB Chain (BEP-2, then BSC).
- Burns: Regular token burns reduce supply, with the goal of eventually reaching 100 million BNB.
Ecosystem and DeFi Usage
- DeFi Integration: BNB is widely used in DeFi applications on BNB Chain, such as PancakeSwap, Venus, and others, for liquidity provision, yield farming, and governance.
- TVL Dominance: PancakeSwap and Venus are leading DeFi platforms by TVL on BNB Chain.
Summary Table
| Feature | Details |
|---|---|
| Initial Supply | 200 million BNB |
| Current Supply | ~150.54 million BNB (as of Dec 2024, due to burns) |
| Issuance | ICO, with vesting for team and early investors |
| Allocation | ICO Investors, Founding Team, Angel Investors |
| Usage | Transaction fees, staking, DeFi, rewards, governance |
| Incentives | Staking rewards, Launchpool/Launchpad, BNB Vault, Simple Earn |
| Locking | Staking (7-day unbond), product-specific locks (15–120 days), vesting for team |
| Unlocking | Team: 20% at genesis, 20% annually for 4 years; others: immediate or product-specific |
| Burn Mechanism | Regular burns to reduce supply |
Key Takeaways
- BNB’s tokenomics are designed for long-term sustainability, with a deflationary supply, clear vesting for insiders, and broad utility across the BNB Chain and Binance ecosystem.
- Incentive mechanisms encourage participation in network security, DeFi, and new project launches.
- Locking and unlocking schedules are transparent, with most major allocations fully unlocked by 2021, and ongoing burns further reducing supply.
If you need more granular details on specific allocation percentages or want to see historical unlock charts, let me know!
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.
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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 = 767.99 USD