The history and development of Binance Coin (BNB) can be traced back to the establishment of the Binance cryptocurrency exchange. Here’s a chronological overview of its key milestones:
1. Binance Exchange Launch (July 2017): Binance was founded by Changpeng Zhao (CZ) in July 2017. The exchange quickly gained popularity due to its user-friendly interface, a wide range of supported cryptocurrencies, and low trading fees. As part of its launch, Binance also introduced its native utility token, Binance Coin (BNB).
2. BNB ICO (July 2017): To fund the development of the Binance exchange and create a native cryptocurrency, Binance conducted an Initial Coin Offering (ICO) for BNB. The ICO took place in July 2017, and 100 million BNB tokens were issued on the Ethereum blockchain as ERC-20 tokens.
3. Token Burn Mechanism (October 2017): Binance introduced a token burn mechanism in October 2017. As part of this process, Binance used 20% of its quarterly profits to buy back BNB from the market and subsequently burn (destroy) the tokens. This deflationary approach aimed to reduce the total supply of BNB over time, potentially increasing its value.
4. Binance Chain and Mainnet Launch (April 2019): Recognizing the limitations of relying on the Ethereum network, Binance announced the development of its own blockchain, Binance Chain, in March 2018. Binance Chain aimed to provide a high-performance and scalable blockchain infrastructure tailored to the needs of the Binance ecosystem. The mainnet of Binance Chain was launched on April 18, 2019, and BNB transitioned from the Ethereum blockchain to become the native cryptocurrency of Binance Chain.
5. Binance DEX and Binance Coin Migration (April 2019): In conjunction with the Binance Chain mainnet launch, Binance also unveiled the Binance Decentralized Exchange (Binance DEX). Binance DEX operates on top of Binance Chain and allows users to trade digital assets in a decentralized manner, maintaining control over their private keys. Binance Coin played a vital role in the Binance DEX ecosystem, serving as the primary asset for transaction fees and other functions.
6. Binance Launchpad and Token Sale Platform: Binance Launchpad, an initiative launched in January 2019, aimed to provide a platform for new blockchain projects to raise funds through token sales. BNB holders were given priority access to these token sales, increasing demand for BNB. Many high-profile token sales took place on the Launchpad, often leading to a surge in BNB’s value.
7. Binance Smart Chain (BSC) Launch (September 2020): In response to the growing popularity of decentralized finance (DeFi) and the need for a compatible infrastructure, Binance launched Binance Smart Chain (BSC) in September 2020. BSC operates as a parallel blockchain to Binance Chain and enables the creation of smart contracts. BNB also plays a significant role on BSC, facilitating cross-chain asset swaps and powering DeFi applications.
8. Continued Growth and Adoption: Over the years, Binance Coin has experienced remarkable growth and adoption. Its utility within the Binance ecosystem, coupled with strategic partnerships and the continuous expansion of Binance’s services, has contributed to its popularity among traders, investors, and developers.
