Article Summary, Automatically Generated By AI
Here is a summary of the text in HTML format:
About BNB
-
Launch Date:
July 2017 -
Founders:
Changpeng Zhao (CEO) and He Yi (CMO) -
Unique Features:
Decentralized, blockchain-based networks, drive for development, and deflationary tokenomics -
BNB Auto-Burn:
Quarterly burning of tokens to sustain value and create deflationary effect; 38 million tokens burned so far -
Circulating Supply:
168,137,036 BNB coins (as of September 2021) -
Maximum Supply:
200
About Binance Coin (BNB)
What is Binance Coin (BNB)?
Launched in July 2017, Binance has established itself as the world’s largest cryptocurrency exchange in terms of daily trading volume. With a mission to propel cryptocurrency exchanges to the forefront of global financial activity, Binance is poised to revolutionize the financial landscape. The inspiration behind the name Binance lies in its representation of a new financial paradigm – Binary Finance, symbolizing a fusion of traditional finance and cutting-edge technology.
Beyond its stature as the world’s largest cryptocurrency exchange, Binance has
established a comprehensive ecosystem of functionalities catering to its users.
The Binance network encompasses a multifaceted framework, comprising the Binance
Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research projects,
all of which harness the potential of blockchain technology to usher in a new era
of finance. As a pivotal component, BNB plays a vital role in the seamless
operation of numerous Binance sub-projects.
The Visionaries Behind BNB: Unveiling the Founders
Changpeng Zhao, the visionary founder and CEO of Binance, embarked on his illustrious career in 2001, when he joined Bloomberg as the head of tradebook futures development. During his four-year tenure, he honed his expertise, subsequently transitioning to Fusion Systems, where he assumed the role of partner.
Since 2013, Changpeng Zhao has been at the forefront of blockchain technology and cryptocurrency innovation. He assumed the role of head of development at Blockchain, and in 2015, he founded BijieTech. In 2017, Zhao officially unveiled Binance, and has since then helmed the company as its CEO.
He Yi, a visionary entrepreneur, is the co-founder and chief marketing officer at Binance. Her professional journey began in 2012 as a TV anchor and presenter on China Travel TV. In 2014, she took the reins as co-founder of OKCoin, which rapidly emerged as the largest fiat-to-crypto exchange in China. In 2017, she formed a pivotal partnership with Changpeng Zhao, and together they pioneered the creation of the world’s largest crypto exchange, Binance.
The Unparalleled Attributes of BNB
Binance has evolved into a distinctive ecosystem comprising decentralized, blockchain-based networks. Having emerged as the premier cryptocurrency exchange in multiple countries, its ancillary entities are also garnering considerable attention.
One of Binance’s most significant competitive advantages lies in its relentless pursuit of innovation. From its humble beginnings as a cryptocurrency exchange in 2017, the company has since diversified its services across a multitude of domains. As stated on its website, Binance’s overarching mission is to evolve into a comprehensive infrastructure services provider for the entire blockchain ecosystem.
Following its inception, the exchange has also reaped the benefits of heightened investor interest in BNB. Notably, the coin experienced a substantial price surge at the outset of 2021, thereby catapulting it onto the radar of institutional investors.
Notably, initiatives such as BEP-95 have further enhanced the already deflationary tokenomics, rendering BNB even more deflationary in nature. In the aftermath of the proposal, gas fees on Binance Smart Chain have experienced a significant decline, as the network burns a portion of the fees to promote greater decentralization. This innovative approach was inspired by Ethereum’s pioneering EIP-1559.
This has enabled Binance to successfully navigate several high-profile exploits of protocols on BSC, including the notable $200 million breach of Pancake Bunny and the series of hacks targeting Cream Finance. Notwithstanding these security breaches, users continue to flock to Binance, drawn by its competitive fee structure and the vast array of lucrative meme coins within its ecosystem.
Unveiling BNB’s Auto-Burn Mechanism
Within the crypto industry, a coin burn is a deliberate deflationary mechanism employed to permanently remove coins from circulation, thereby sustaining the value of the digital asset and fostering a deflationary effect. Notably, numerous cryptocurrency projects, including Binance, regularly undertake coin burns to maintain the value of their digital assets and create a deflationary environment.
In the instance of Binance, the cryptocurrency exchange initiated this program in late 2017 and has thus far eliminated over 38 million tokens through its quarterly burn to date. The exchange has set its sights on destroying up to 100 million BNB tokens via its quarterly burns, which would account for a substantial 50% of its circulating supply.
BNB employs a dual coin-burning mechanism. Firstly, it involves the destruction of a portion of the tokens allocated towards transaction fees on the BNB Chain. Additionally, it features quarterly BNB burning events, further reducing the token supply.
Prior to this development, the quarterly burn event was predicated on revenue generated from the Binance centralized exchange. However, under the revamped BNB Auto-Burn program, the quantity of tokens earmarked for burning is calculated via a formula that takes into account the total number of blocks produced on the Binance Smart Chain, as well as BNB’s average dollar-denominated price during the quarter.
As of July 2022, Binance had successfully executed 20 BNB coin burn events, resulting in the destruction of 38,683,447.66 BNB tokens. This significant reduction has diminished the initial 200 million supply by 19.34%, marking a substantial milestone in the token’s lifecycle.
The Circulating Supply of BNB: A Closer Look
A fixed maximum supply of 200,000,000 BNB coins has been established, with 168,137,036 currently in circulation as of September 2021, thereby accounting for a significant proportion of the total supply.
Binance undertakes quarterly burning of its BNB supply, with the ultimate objective of reducing the total supply by half, equivalent to 100,000,000 BNB. On July 18, 2021, the exchange conducted its 16th quarterly burning, which was valued at $390 million in BNB price at the time of the burn. Notably, this was not the most expensive burn, as on April 16, 2021, the exchange burned a staggering $600 million worth, in BNB price at the time of the burn.
According to the Binance whitepaper, precisely half of the maximum supply of BNB coins was earmarked for the initial coin offering (ICO) and public sale of the coin. The ICO, held in July 2017 shortly after the exchange’s launch, saw Binance secure $15 million in funding, with each BNB priced at $0.10 during the ICO. In contrast, considering the current BNB price, this represents an astonishing 4200-fold return on investment (ROI). Another 40% of the total supply, approximately 80,000,000 BNB coins, was allocated among the founding members and team. Finally, the remaining 10% of the maximum supply was divided among angel investors.
The Security Mechanisms Underpinning the BNB Network
Initially, BNB originated as a traditional ERC-20 token on the Ethereum blockchain. Subsequently, the company launched its proprietary blockchain, and the tokens began to be issued from the Binance blockchain, fortified by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism, ensuring enhanced security and reliability.
Notably, ERC-20 tokens leverage the proof-of-stake (PoS) consensus mechanism, which enables unparalleled scalability and facilitates the creation of sophisticated smart contracts. In stark contrast, the Binance blockchain does not support smart contract functionalities. Meanwhile, the Bitcoin blockchain relies on the proof-of-work (PoW) consensus, which, although secure, is inherently limited and consumes substantial amounts of electrical and computing power.
Where to Acquire BNB: A Comprehensive Guide
As the native utility token of the esteemed Binance exchange, the most
expeditious way to procure BNB coins would be to acquire them directly through
Binance. The pioneering exchange boasts the most extensive array of trading
pairs featuring BNB, and it also offers the most competitive trading rates for
the coin. Following the advent of Play2Earn games, interest in the BNB to PHP
exchange rate has experienced a significant surge.
To obtain the current BNB price in your preferred fiat currency, you can utilize CoinMarketCap’s converter tool, conveniently accessible on the BNB currency page. Alternatively, you can visit the dedicated exchange rate converter page. Notable BNB price pairs include: BNB/USD, BNB/GBP, BNB/AUD, BNB/CNY, BNB/JPY, and BNB/EUR.
New to the world of cryptocurrency? Explore our comprehensive guide on entering the market and purchasing BTC, BNB, or any other token at CoinMarketCap’s educational hub, Alexandria.
Associated Resources:
Delve into the world of Elrond.
Delve into the intricacies of the bZx protocol.
Delve into the world of Decentralized Applications (DApps) and discover their transformative potential.
Binance is poised to unveil a revolutionary NFT marketplace, poised to redefine the digital art and collectibles landscape.
Stay ahead of the curve with real-time BNB price updates – download the CoinMarketCap mobile app now!
Seeking to convert the current BNB price to your preferred fiat currency? Look no further than CoinMarketCap’s exchange rate calculator.
Cryptocurrency debit cards, also known as crypto debit cards, are a type of payment card that enables users to spend their cryptocurrencies in real-time, providing a seamless bridge between the digital asset ecosystem and traditional fiat currency-based transactions.