What is BNB, and how did it become one of crypto’s most used coins? What we now call BNB, or Build’N’Build, started as Binance Coin, born from the big ideas of Changpeng Zhao—you know him, the force behind Binance’s surge to become the world’s busiest crypto trading hub. CZ, having cut his teeth developing software for the lightning-fast world of high-frequency trading, teamed up with Yi He to bring BNB into existence in July 2017. They introduced it via an Initial Coin Offering (ICO), tapping into that wild wave of crypto fundraising that defined 2017, with this particular event running from June 26th to July 3rd.
The Origins of BNB: Binance’s Bold Start
Back then, BNB didn’t have its own dedicated blockchain to call home. Instead, it began its journey as an ERC-20 token, built right on the Ethereum system. The coin’s core purpose was clear-cut: people could use it on the rapidly expanding Binance exchange. Its most compelling feature, the one that got everyone talking, was the promise of lower trading costs for anyone choosing to settle their fees using BNB. This clever strategy did more than just encourage folks to buy and hold onto BNB; it immediately gave the coin a practical value and sparked a genuine hunger for it.
During this ICO, 100 million BNB coins—which was exactly half of the 200 million initially created—were made available for anyone to buy. To put it in everyday terms, people could snag 2,700 BNB for a single ETH, or if they had a Bitcoin, that could fetch them a cool 20,000 BNB, setting the launch price around eleven cents per coin. Altogether, the ICO raked in a solid $15 million, paid in both Bitcoin and Ethereum. This injection of capital had a clear plan: 35% was dedicated to beefing up the Binance platform and its trading systems, a hefty half (50%) went into spreading the word, marketing, and teaching folks about crypto, with the final 15% tucked away as a safety net.
As for the other BNB tokens from that first batch, the founding crew held onto 40% (that’s 80 million BNB), a fairly typical arrangement to ensure they were in it for the long haul. Meanwhile, the angel investors, those who jumped in early with their support, were given 10%, or 20 million BNB.
From Token to Powerhouse: BNB’s Blockchain Evolution
Though BNB first appeared as an Ethereum-based token mainly to help users save on fees, its story was always aiming for something much bigger. A major turning point came in April 2019, the month Binance rolled out its very own blockchain, known as Binance Chain (which is now one piece of the larger BNB Chain puzzle). This development signaled BNB’s move away from Ethereum, establishing it as the go-to coin for this fresh digital backbone.
The evolution didn’t hit the brakes there, not by a long shot. This shift meant BNB wasn’t just for cheaper trades anymore; it also took on the role of “gas,” the juice that powers every action on the Binance Chain. The whole system kept growing fast, especially when Binance Smart Chain (BSC)—which has also been folded into the BNB Chain—went live in September 2020. BSC’s arrival brought smart contract capabilities to the table, throwing the gates wide open for BNB to take a leading role in the exciting, fast-growing spaces of decentralized finance (DeFi) and all sorts of decentralized apps (dApps).
How BNB Coin Works
BNB is the utility token that fuels the entire BNB Chain ecosystem, which includes the BNB Beacon Chain (formerly Binance Chain) and BNB Smart Chain (BSC). Here’s how it works in practice:
- Transaction Fees: BNB is used to pay “gas” fees when you transfer tokens, interact with smart contracts, or trade on decentralized exchanges (DEXs) built on the BNB Chain. Using BNB often makes transactions faster and cheaper compared to other networks.
- Smart Contracts & dApps: Developers use BNB to deploy and run decentralized applications (dApps), making it the backbone of services ranging from DeFi protocols to NFT marketplaces and blockchain-based games.
- Staking & Validators: BNB is also used in staking mechanisms. Validators lock up BNB to help secure the network and process transactions. In return, they earn rewards, and some platforms allow regular users to delegate their BNB to these validators to earn a share.
- Token Burn Mechanism: Binance regularly “burns” (permanently destroys) BNB to reduce total supply over time. This deflationary model is designed to support long-term value by increasing scarcity.
- Additional Use Cases: BNB can be used for trading fee discounts on Binance, participating in token sales via Binance Launchpad, paying for travel and goods through selected merchants, and even booking hotels or flights through crypto-friendly platforms.
Is BNB Still Relevant in 2025?
BNB has come a long way from being just a fee-saving token on the Binance exchange. Today, it’s the lifeblood of a rapidly growing blockchain ecosystem that supports decentralized finance, gaming, NFTs, and more. With its ongoing utility, regular token burns, and deep integration into Binance’s ecosystem, BNB continues to offer real-world use and value.
However, it’s not without risks. BNB’s future remains closely tied to Binance as a company, which means regulatory scrutiny and platform changes could have outsized effects. But for users and investors looking for a versatile, high-utility crypto asset with a strong track record and a massive user base, BNB still holds a powerful position in the Web3 world.
