BNB

What is BNB?

BNB is the native token of BNB Chain, a smart-contract network created by the Binance exchange, and it also works as a perks token inside Binance. You spend it on network fees, and Binance users can use it for trading-fee discounts and token-sale access. Its fortunes are closely tied to Binance, the company.

What it’s used for

People hold BNB to pay gas when they use apps on BNB Smart Chain, such as decentralized exchanges and lending markets. Validators and delegators stake BNB to help secure the chain. On Binance's global platform, traders use BNB to pay trading fees at a discount and to join launch and airdrop programs.

Role of the BNB token:

Evidence of real use

• BNB Auto-Burn removes BNB every quarter using a formula based on BNB's price and the number of blocks produced on BNB Chain. Source
• BNB Chain reports its quarterly burns publicly and says the burns now happen directly on BNB Smart Chain, independent of the Binance exchange. Source
• Binance pleaded guilty in November 2023 to Bank Secrecy Act and sanctions-related charges and agreed to pay over $4 billion. Source

How BNB works

BNB began in 2017 as a token sold to fund the Binance exchange. In 2019 it moved to Binance's own blockchain, and a later smart-contract chain, now called BNB Smart Chain, made it the gas token for a large ecosystem of apps. When you swap tokens on a BNB Chain app or send a token to a friend, a small fee is paid in BNB, so anyone using the network needs a little BNB in their wallet.

The chain is secured by validators who stake BNB, and ordinary holders can delegate BNB to them in exchange for a share of rewards. Separately, Binance runs a quarterly Auto-Burn that permanently removes BNB from circulation using a published formula, and part of each block's gas fees is burned in real time. These burns are meant to shrink supply over time toward a stated target rather than create new tokens.

Inside the Binance exchange, BNB acts like a loyalty card. Traders can pay fees in BNB at a discount and use it to join token launches and promotions. That convenience is real, but it also means BNB's demand depends heavily on one company's health, policies and legal standing in each country where it operates. If Binance changes its perks or loses access to a market, BNB holders feel the effect even if they never use the exchange.

Key moments

1. 2017BNB is created in Binance's token sale as an Ethereum-based token.
2. 2019Binance launches its own blockchain and BNB migrates to it.
3. 2022An attacker exploits a BNB Chain cross-chain bridge and withdraws about 2 million BNB; validators pause the chain.
4. 2023Binance and founder Changpeng Zhao plead guilty to US federal charges; Binance agrees to pay over $4 billion.
5. 2025The SEC dismisses its civil case against Binance with prejudice in May, and President Trump pardons Zhao in October.

Supply

BNB started with a total supply of 200 million tokens. A quarterly Auto-Burn plus a real-time burn of part of the gas fees steadily remove tokens, with a stated long-term target of 100 million BNB. No new BNB is minted to pay validators; they earn from transaction fees.

Risks to understand

• Company concentration: BNB's value and usefulness are tightly linked to Binance, so legal, regulatory or business trouble at Binance can hit the token directly.
• US access is split: Binance.com does not serve US residents, and Binance.US is a separate company with its own state-by-state availability and product list.
• Regulatory history: Binance pleaded guilty in 2023 to anti-money-laundering and sanctions-related violations, and it remains under a court-supervised compliance regime.
• Bridge and smart-contract risk: the 2022 bridge exploit showed that infrastructure connected to BNB Chain can fail in ways that affect all holders.
• Validator concentration: a relatively small validator set makes coordinated intervention, such as halting the chain, easier than on more decentralized networks.

Last reviewed October 4, 2026 by The Crypto Guide editorial team. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.