BNB use cases in the Binance ecosystem: Part 1
Every Binancian knows that BNB fuels the Binance Ecosystem. But apart from being the native coin of Binance Chain, what are the real BNB use cases for Binance users to actually own it? In this article, we’re going to cover many of the countless perks you get from holding BNB as a Binance user.
In our Binance 2019: Year in Review, we counted that the number of all possible use cases for BNB was already greater than the number of all listed coins on Binance’s spot exchange. This is just the beginning.
Due to the number of use cases, we will divide this article into two parts. In this article, we will cover the utility and earning BNB use cases inside the Binance ecosystem. In a second article, we will reveal the many discounts and doors that BNB opens for its hodlers.
But before we dive any further… It’s time to buy yourself a new phone with BNB!Did you know that Binance has its own blockchain phone? We’re near the end of a special promo for all of the hardcore Binancians: Purchase an HTC EXODUS 1 - Binance Edition and get $100 cashback in BNB!
Why would we mention this promo here? Because, of course, you can purchase the phone with BNB! Be quick as the promo ends in 9 days - 2020/02/20 0:00 AM. These are the last days to buy the special-edition, Binance-branded phone.
Let’s move on to more of BNB’s use cases: Utility and Earning.
#1 Convert your wallet’s dust balance to BNB
Within a cryptocurrency exchange (...) the term dust refers to small fractions of cryptocurrencies that are left from trades. Most exchanges have a minimum trade requirement, meaning that these small amounts are unable to be transacted. — Binance Academy
In Binance dust refers to a balance of an estimated value lower than 0.001 BTC. Dust can arise in your Binance account in three cases:
As a leftover from trades (in case you’ve opted out of paying the trade fees with BNB)
As a commission for transactions of your referrals from the Referral Program
Due to an ongoing Dusting Attack
Binance allows you to convert all of your account’s dust no matter its origin to BNB in five clicks: visit your account’s Spot Wallet Balance, choose “Convert to BNB »”. select assets you want to convert manually or tick “All”, choose “Convert”, and finally confirm the conversion. Viola. Dust is gone, BNB is on.
#2 Earn Bitcoin by paying your reservations on TravelbyBit with BNB
Have you always had a problem spending your BNB? Now you can get Bitcoin back for your flight and hotel bookings with TravelbyBit!
TravelbyBit customers can earn up to 10% rewards in Bitcoin when booking eligible trips on TravelbyBit.com, and, even better, flights and accommodation can be paid through BNB.
For more details, refer to this blog post on how you can earn rewards when you travel.
#3 Earn from lending your BNB on flexible rules
Some time ago we’ve also introduced a trial lending type of products: flexible deposits, which provide BNB hodlers with the flexibility to subscribe crypto to earn interest and redeem lent out balance anytime. Due to the high popularity of these products, we’ve decided to include it in our Lending platform for good.
As of 11/02/2020, the estimated Annual Yield on BNB Flexible Deposits is 0.55%. You can redeem your funds and accrued interest as early as the second day of your subscription date. Interest earned is distributed daily.
#4 Earn 100% more commission in Binance’s & Binance Futures’ Referral Programs
It pays to have friends, and is worth double the normal rewards to have BNB!
Not so long ago, we launched the exclusive Binance Futures Referral Program. We also improved the Binance’s spot exchange Referral Program, the original version which has been with us since the end of 2017. Every Binance user can become a referrer — even without holding a single BNB. But it’s much more fun to hold BNB and receive more. That's where BNB comes handy.
Want to see how it works? See the breakdown below.
What does it all mean for me?
Imagine that you’ve just invited a friend to join Binance with your unique Referral ID. Your friend made a trade on spot exchange and paid $10 in fees. If you have under 500 BNB, then you earn $2 from fees that he paid. If you have 500 BNB or more then your commission doubles to $4.
Conclusion? It pays to have friends!
#5 Sell BNB for supported fiat currencies and withdraw funds via Binance Fiat Gateway
Last but not least, did you know that you can directly exchange BNB to selected fiat currencies, and withdraw your fiat balance with supported channels? Binance Fiat Gateway is the keyword here. It releases you from a need of checking the order book and chart situation. In addition, it also takes off the weight from you of verifying the market depth and knowing the difference between makers and takers.
Transactions are settled in three simple steps: just enter the amount of BNB you want to sell, select the fiat currency you want to receive, and finally confirm the transaction. Done. That’s how Binance Fiat Gateway works.
To summarize what you’ve read so far: BNB enables you to:
Easily convert your dust balances to it
Save up to 10% of Bitcoin in cashback for travel bookings made on TravelbyBit
Earn it from lending it to others on flexible rules
Sell it straight for supported fiat currencies with Binance Fiat Gateway
We will soon share part 2 of the BNB use cases in the Binance ecosystem post, that will cover the discounts and participation eligibility perks for its hodlers. Stay tuned!