Binance Coin (BNB) plays a central role within the Binance ecosystem, serving as the native cryptocurrency of the Binance exchange. Its utility extends beyond a standard digital asset, and BNB offers several essential functions within the Binance ecosystem. Here are some key utilities of BNB within the Binance platform:
Trading Fee Discounts:
One of the primary utilities of BNB within the Binance ecosystem is the ability to use it to pay for trading fees on the exchange. When you enable the “Pay with BNB” option, you receive a substantial discount on trading fees. In the initial years, using BNB for trading fee payment grants users a more significant discount, which decreases over time.
Participating in Token Sales (IEOs):
Binance Launchpad is Binance’s token launch platform, where new cryptocurrency projects conduct Initial Exchange Offerings (IEOs). BNB is the designated cryptocurrency used to participate in these token sales. Users can use BNB to purchase newly listed tokens during the IEOs.
Ecosystem Services and Products:
BNB can be used to access various services and products within the Binance ecosystem. For example, BNB can be utilized to purchase virtual gifts on Binance’s live streaming platform, Binance Live. Additionally, Binance offers BNB as a payment option for various merchant services and partners.
Staking and Voting:
Binance supports staking for specific cryptocurrencies, and in some cases, users can stake BNB itself. By staking BNB, users can earn rewards in the form of additional BNB or other tokens. Moreover, BNB holders often get the opportunity to participate in community voting for various platform decisions.
Binance Smart Chain (BSC):
Binance Coin also has utility within the Binance Smart Chain (BSC) ecosystem. BSC is a parallel blockchain to the Binance Chain, designed to support smart contracts and decentralized applications (dApps). On BSC, users can utilize BNB to pay for transaction fees and interact with various dApps.
Cross-Chain Use:
BNB has extended its utility beyond the Binance exchange and Binance Chain ecosystem. Due to its compatibility with the BEP-2, BEP-20, and BEP-2 (Binance Chain) standards, BNB can be easily transferred and used on other blockchain networks that support these standards.
