BNB

BNB, which stands for "Build and Build" (formerly Binance Coin), is the native utility token of the BNB Chain ecosystem. This ecosystem is a dual-chain architecture composed of the BNB Smart Chain (BSC), which is compatible with the Ethereum Virtual Machine (EVM) for smart contracts and decentralized applications (dApps), and the BNB Beacon Chain, which focuses on governance and staking. BNB is used to pay for transaction fees on the network, participate in token sales on the Binance Launchpad, and serves as a core asset within the vast number of applications built on the BNB Chain.

Who created BNB? BNB was created by the global cryptocurrency exchange Binance and was launched through an Initial Coin Offering (ICO) in July 2017. The exchange was founded by Changpeng Zhao (CZ), a prominent figure in the cryptocurrency industry. Initially an ERC-20 token on Ethereum, BNB later migrated to its own native blockchain.

How does BNB work? The BNB Smart Chain operates on a consensus mechanism known as Proof-of-Staked-Authority (PoSA). This is a hybrid model that combines elements of Delegated Proof-of-Stake (DPoS) and Proof-of-Authority (PoA). A limited set of validators are elected based on their BNB stake to produce blocks, which allows for high transaction speeds and low fees. A key feature of BNB's tokenomics is its Auto-Burn mechanism, a quarterly process that automatically destroys a portion of BNB based on its price and the number of blocks generated. This is designed to gradually reduce the total supply of BNB until it reaches 100 million.