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.
Overview
BNB (Binance Coin) is the native token of the BNB Chain ecosystem, which includes the BNB Smart Chain and BNB Beacon Chain. It was initially launched on Ethereum in 2017 and later migrated to its own chains. The token economics of BNB are designed to support network security, incentivize participation, and facilitate a wide range of use cases within the Binance and BNB Chain ecosystems.
Issuance Mechanism
- Initial Supply: BNB was launched with a maximum supply of 200 million tokens.
- Migration: Originally an ERC-20 token, BNB migrated to BNB Beacon Chain (BEP-2) and BNB Smart Chain (BEP-20). Most BNB now exists natively on BNB Smart Chain.
- Burn Mechanism: BNB employs a deflationary model. Regular token burns (removal of tokens from circulation) have reduced the total supply to approximately 150.54 million as of December 2024.
Allocation Mechanism
| Category | Description |
|---|---|
| Initial Distribution | 200 million BNB at launch (2017) |
| Current Supply | ~150.54 million (after multiple burn events) |
| Chain Distribution | ~150.24 million on BNB Smart Chain, ~295,000 on Ethereum (ERC-20) |
Usage and Incentive Mechanism
BNB is a multi-utility token with the following primary uses:
- Transaction Fees: Used to pay for transaction fees on BNB Chain and Binance Exchange, often at a discounted rate.
- Staking and Delegation: Tokenholders can delegate BNB to validators to secure the network and earn rewards. Validators and delegators share rewards, with slashing penalties for malicious or negligent behavior (e.g., double-signing or missing blocks).
- DeFi and dApps: BNB is widely used in DeFi protocols, liquidity pools, and as collateral in lending/borrowing platforms within the BNB Chain ecosystem.
- Binance Earn Platform: Users can lock BNB in products like Simple Earn and BNB Vault to earn APR rewards. Locking periods range from 15 to 120 days, with varying APRs (e.g., 0.05% to 0.5%).
- Launchpad and Launchpool: BNB can be staked to participate in new token launches and earn event-specific rewards.
Locking Mechanism
- Staking Lock: When delegating BNB to a validator, there is a seven-day unbonding period if tokens are withdrawn.
- Earn Products: BNB can be locked for fixed periods (15, 30, 60, 90, or 120 days) in Simple Earn, with corresponding APRs.
- BNB Vault: Aggregates rewards from various sources; tokens are locked for the duration of the product.
- Launchpool/Launchpad: BNB is locked for the duration of the farming or launch event, after which both principal and rewards are returned.
Unlocking Time
- Staking: Seven-day unbonding period for delegated BNB.
- Earn Products: Unlocks at the end of the selected lock period (e.g., 15, 30, 60, 90, or 120 days).
- Launchpool/Launchpad: Unlocks at the end of the event or farming period.
Token Unlock Schedule
- Genesis Supply: As of June 2023, 100% of BNB’s genesis supply is liquid and unlocked, meaning there are no vesting cliffs or delayed unlocks for the initial distribution.
- Ongoing Unlocks: The only new tokens entering circulation are those that become unlocked from staking, earn products, or event-specific locks, all of which are short-term and user-initiated.
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | 200M initial supply, deflationary via regular burns, ~150.54M supply as of Dec 2024 |
| Allocation | All tokens initially distributed; no ongoing emissions; supply reduced by burns |
| Usage/Incentives | Transaction fees, staking, DeFi, Launchpad/Launchpool, Earn products |
| Locking | 7-day unbonding (staking); 15-120 days (Earn); event-based (Launchpool/Launchpad) |
| Unlocking | End of lock period or event; 7-day unbonding for staking |
| Unlock Schedule | 100% genesis supply liquid; no long-term vesting; only user-initiated short-term locks |
Additional Insights
- Deflationary Model: The regular burn mechanism is a key feature, reducing supply and potentially increasing scarcity over time.
- No Long-Term Vesting: Unlike many newer projects, BNB’s entire genesis supply is already liquid, with no ongoing vesting for team or investors.
- Ecosystem Growth: BNB’s utility and incentive mechanisms are closely tied to the growth of the BNB Chain ecosystem, including DeFi, dApps, and Binance’s own products.
This comprehensive tokenomics structure has contributed to BNB’s position as a leading asset in the crypto space, balancing utility, incentives, and supply management for both users and the broader ecosystem.
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 = 1,058.83 USD