What is BNB?
BNB (The Binance Coin) is a utility token created in 2017. BNB is the cryptocurrency coin that powers the Binance ecosystem. As one of the world's most popular utility tokens, not only can you buy or sell BNB like any other cryptocurrency, but BNB comes with a wide range of applications and benefits.
Why does Binance burn BNB every quarter?
Binance schedules quarterly BNB burns to permanently reduce the supply of BNB, in turn, increasing its value. The amount of BNB burned is calculated based on Binance’s overall quarterly trading volume. Quarterly coin burns will continue until a total of 100,000,000 BNB are destroyed, which represents 50% of the total BNB supply.
To learn more about BNB Burn, please refer to:
Using BNB to pay for fees
When you hold BNB, you can receive a significant discount for using BNB to pay for trading fees. You can use BNB to pay for trading and transaction fees on the Binance exchange, Binance DEX, Binance Chain, and Binance Smart Chain.
For example, you can save 25% on Spot and Margin trading fees and 10% on Futures trading fees. If you are a VIP user, you can receive a higher than 25% discount on fees. For more details, please visit Benefits of BNB.
The BNB trading fee discount is calculated based on the number of years since Binance’s establishment in July 2017. Please refer to the table below for the discount rate:
Time since Binance established
The 1st year
The 2nd year
The 3rd year
The 4th year
The 5th year
NOTE: “Time” is not referring to your account registration time.
*In anticipation of Binance’s fourth anniversary on 2021-07-14 and in appreciation of customers' continued support, Binance will extend the option for users to receive a 25% discount on trading fees when paying by BNB. The 25% discount will now be valid through 2022-07-13 at 23:59:59 (UTC). To learn more, please refer to Binance to Retain the 25% Trading Fee Discount When Using BNB.
Frequently Asked Questions
1. How to convert BNB to other coins?
For example, if you trade BNB to receive ETH, our system will calculate the fee based on the exchange ratio of ETH to BNB at the market price, which is based on the market price of ETH / BTC and BNB / BTC.
Exchange ratio of ETH/BNB = ETH/BTC[market price] /(BNB/BTC[market price]).
Please note that Binance updates its market price every second. You should refer to the transaction history for the final fee charged.
2. Can I enable/disable the [Using BNB to pay for fees] function?
You can enable/disable the function anytime from [Profile] - [Dashboard]. Scroll down to [Your Trading Fee Level] to toggle on or off the button next to [Using BNB to pay for fees ( 25% discount )].
You can also see your current status of this function on the Spot and Futures trading pages.
3. How do I calculate the fees for trading BNB?
When you turn on the [Using BNB to pay for fees] function, you can receive a discount for your trading fees. If you turn it off, Binance will charge 100% of the trading fees. Please refer to the Binance Fee Schedule for more details on trading and deposit/withdrawal fees.
4. If I’ve enabled the [Using BNB to pay for fees] function but I don’t have sufficient BNB balance in my account, what will happen?
If the BNB balance in your account is insufficient, fees will be deducted according to the Binance Fee Schedule.
Besides, BNB can be used to pay for Interest in Margin account, you can visit How to Use BNB to Pay For the Interest in Margin Account for more details.