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News and updates from the world’s leading cryptocurrency exchange
Oct 09
2019
#UseBNB: The Evolution of a Utility Token

BNB, initially created to pay for fees on the Binance exchange, has since evolved into a widely-used utility token with more than 120 use cases. We’d like to show you how BNB has grown its utility and significance over time.

Origins

When Binance launched in July 2017, it introduced BNB, a cryptocurrency that allows users to pay for trading fees at a discounted rate on the Binance exchange. 

The 50% trading fee discount offered by the token during Binance’s first year, which has been adjusted to the current 25% rate, was the first of many use cases where BNB has driven Binance’s global ecosystem growth.

Since its inception, BNB has increasingly developed its functions and use cases, and has cemented its role as one of the most widely-used utility tokens in the blockchain space. BNB has been added and applied in various use cases, both within and beyond the Binance ecosystem. 

BNB Drives Binance’s Expansion

According to a report by SIMETRI, Crypto Briefing’s research arm, “BNB’s utility has increased substantially. The coin finds more acceptance for payments and has been integrated by other companies in financial services such as lending. The largest increases have come from within the Binance ecosystem, however. BNB can also now be used on Binance DEX, as well as the company’s Launchpad and Lending services.”

You can use your BNB within the global blockchain and Binance ecosystem for the following purposes beyond trading:

  1. Binance Chain, a new blockchain platform launched by the Binance community for creating and transferring tokens in a fast and efficient manner. BNB is used as the native token for the blockchain to pay for things that you can do on the platform.

  2. Binance DEX, the decentralized exchange built on top of Binance Chain, accepts BNB payments for various fees.

  3. Binance Launchpad, the token sale platform of Binance, which accepts BNB to participate in token sales for the goal of driving utility to its projects.

  4. Binance Lending offers various lending products where you can grow your BNB holdings.

  5. Binance’s fiat partners have made it possible for people in different areas of the world to buy and sell BNB in exchange for fiat currency.

These are some of the use cases within the Binance ecosystem. Through each use case, we’ve shown that BNB can be utilized not only on the exchange but also across the expanding Binance ecosystem. 

BNB Beyond Binance

BNB is also at the forefront of many applications driving further crypto adoption. Over the past two years, we’ve collaborated with blockchain and non-blockchain companies to expand BNB’s use case. 

  • Merchant payments with BNB. People can pay for goods and services in BNB via TravelbyBit or Pundi X merchant POS systems around the world. In the last month, about 12% of the merchant transactions were in BNB via TravelbyBit POS system.

  • Traveling with BNB. On travel booking platforms such as TravelbyBit and Trip.io, people can use BNB to pay for hotels and flight bookings. On TravelbyBit alone, more than US$700,000 worth flights and hotels were booked between 2018 and 2019. 

  • Buying virtual gifts. People can use BNB to pay for virtual gifts on websites such as Gifto.

  • Hiring freelancers. Using platforms like CanWork (with the CanYa coin), you can hire freelancers and pay the fees in BNB. 

  • Earning in-game rewards. Get rewarded or pay in BNB for games on VIBEHub

  • Buying property. Pay for real estate assets using BNB on property listing websites such as Propy

  • Storing BNB using major smartphones. You can store and use BNB through built-in wallets on some of the latest smartphones from Samsung and HTC. This is further proof that BNB is being recognized as a major cryptocurrency with huge utility.

  • Giving crypto access to traditional investors. Now, even non-crypto holders can get access to a top-tier utility token like BNB, courtesy of a BNB exchange-traded product we built with Amun, which is now listed on SIX Swiss Exchange.

Understanding BNB

Now that we’ve identified the many ways you can use BNB, here’s a quick breakdown of what you need to know about this powerful utility token.

  • BNB is a fully operational asset that can function as a currency and a medium of exchange. Whether you use it to pay for goods, to spend on exchange fees, or to trade for USD and many other fiat and cryptocurrencies, BNB is an asset you can use, spend, and store easily, with wide acceptance that can rival the biggest cryptocurrencies in the world.

  • BNB is decentralized and its direction is not controlled by the Binance team. As BNB is the native token of the community-built Binance Chain, it does not base its value on what’s going on in Binance. With more than 120 use cases already recorded beyond Binance, the entire blockchain community has a say in how BNB fares and is treated as a utility.

  • BNB is not an investment. BNB does not represent equity in Binance. The periodic BNB coin burn is not linked to any performance indicators on the Binance exchange, similarly to the circulation amount of local currencies can be added or transacted from the financial system without being tied to the country’s performance. Holding BNB only allows you to pay for services offered within and outside of the Binance ecosystem, not to have a stake in Binance.

[UPDATED on October 16, 2019, to include the latest information about the BNB ETP by Amun.]