What is Binance Coin?
Anyone who takes part in the cryptocurrency world is familiar with Binance, one of the most popular cryptocurrency trading platforms. The BNB token, also known as Binance Coin, is a cryptocurrency itself. The BNB has been a key part of securing Binance funding through an ICO, and now it serves other important functions. The BNB token works on the Ethereum blockchain.
Features of Binance Coin
One of the key features of the BNB token is the fixed plans for the purchase of tokens and their burning. In a nutshell, Binance will use 20 percent of profits from each quarter to buy back and then burn BNB. They will continue this process until the supply of BNBs is 50 percent of the original amount, with 100 million BNB remaining. Each buyback transaction conducted by Binance to burn BNB is announced through the blockchain for transparency.
By reducing the number of tokens in circulation, the value of existing tokens is increasing, assuming that demand remains the same. Their value may increase even more as demand increases, which is likely to be due to the popularity and growth of Binance.
What functions does the BNB perform?
The most important function of BNB is to ensure the functioning of the entire Binance ecosystem. Exchange platform users can pay trading fees using BNB, and during the first year of implementation, this has been providing them with a 50% discount on trading. Binance Coin has added functionality in other ecosystems through partnerships. For example, the Uplive platform supports BNB as a way to purchase virtual gifts.
What discounts do you get for paying BNB commissions?
Like any other cryptocurrency trading platform, Binance makes some profit from the collection of commissions. You can use BNB tokens to pay any of Binance fees, which is extremely convenient.