How to Use BNB to Pay for Fees and Earn 25% Discount
What is BNB?
BNB stands for “Build and Build”. It powers the BNB Chain ecosystem and the BNB community. As one of the most popular utility tokens, not only can you trade BNB like any other cryptocurrency, you can also use BNB in a wide range of applications and use cases.
Why BNB burns?
BNB uses an Auto-Burn system to reduce its total supply to 100,000,000 BNB. The BNB Auto-Burn mechanism adjusts the amount of BNB to be burned based on BNB’s price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter. This offers greater transparency and predictability to the BNB community.
BNB additionally uses a real-time burning mechanism based on gas fees. A fixed ratio of the gas fee collected is burned in each block, with the ratio decided by BSC validators.
You can learn more about BNB burns at https://www.bnbburn.info/.
BNB burns will continue until a total of 100,000,000 BNB are removed, 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 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, BNB Beacon Chain, and BNB Smart Chain (BSC).
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 25% discount on fees on top of your VIP discount. For more details, please visit Benefits of BNB.
Please note that if an asset's price is less than 0.00000001 BNB, the system does not support the BNB trading fee discount. When the conversion ratio is greater than 0.00000001 BNB, you can enjoy the BNB trading fee discount.
*In anticipation of Binance’s fifth anniversary on 2022-07-14 and in appreciation of your 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 2023-07-13 at 23:59:59 (UTC). To learn more, please refer to Binance to Extend 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 Deduction] 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 Deduction (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 Deduction] 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 Deduction] 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 the Margin account, you can visit How to Use BNB to Pay For Interest in Cross Margin Account for more details.