Binance Coin is a token issued by Binance, referred to as BNB, which is a decentralized blockchain digital asset based on Ethereum. The total amount of issuance is constant at 200 million. BNB will be destroyed every quarter according to the trading volume of the Binance platform in the current quarter. The destruction record will be announced as soon as possible. Users can query through the blockchain browser to ensure openness and transparency until the destruction Until the total amount is 100 million BNB coins.

BNB, as the fuel of the Binance ecosystem and decentralized exchange, has been applied to many scenarios. For example, if you use BNB to deduct the transaction fee of Binance, you can get a discount of up to 50%. It can be used in Monaco Visa and APP applications BNB payment, BNB can be used to purchase virtual gifts on the Uplive live broadcast platform. At present, BNB ranks firmly in the global TOP20, the best ranking is the global TOP10, and is supported by blockchain enthusiasts in more than 180 countries and regions around the world.

Binance and BNB

Binance is a centralized digital currency exchange established on July 14, 2017. It quickly rose to the first echelon of the exchange within half a year after its establishment, occupying the top of the trading volume list, and is still the top three in the world in terms of trading volume. Its founder Zhao Changpeng has also become the real richest man in Bitcoin (this is much more real than Li Xiaolai).

BNB (Binance Coin) is the platform currency of Binance Exchange, with a total issuance of 200 million pieces. Every quarter, 20% of the net profit of the platform will be used to repurchase BNB, and the repurchased BNB will be directly destroyed until a total of 100 million BNB coins are destroyed. The repurchase will deflate BNB. In theory, when the total value of BNB remains unchanged, the repurchase can increase the currency price. It has been destroyed eight times so far, the most recent being in July 2019.

Calculated in US dollars/USDT, the highest price of BNB in ​​the 2018 bull market was $23. Currently (2019 March 1) The price was around $11, and the price was cut in half in the bear market. Compare Bitcoin to Ethereum's price changes over the past year, this kind of decline is at best a shedding layer, and compared to those altcoins that have generally fallen ten times, hundreds of times, and thousand times, this is hardly a drop. What's more, the fact that the price doubled in two months in a bear market is the most eye-catching part of such an old currency.

Issuance distribution ratio

1. The ICO issued a total of 100 million BNB to the public, accounting for 50% of the total issuance, and was conducted on three platforms at the same time: Binance official website, RenRenICO, and Bijiu.com.

2. The founding team members held 80 million BNB in ​​the early stage, accounting for 40% of the total issuance.

3. The angel round financing of well-known industry insiders holds 20 million BNB, accounting for 10% of the total issuance ratio.

Value and buyback mechanism

1. Discounted transaction fees on Binance platform

For users who participate in transactions on the Binance platform, no matter what kind of tokens they trade, when they need to pay transaction fees, if they hold sufficient BNB, the system will provide discounts for the required fees (specific discounts The rate is shown in the table below), and the equivalent BNB amount is converted according to the market value at that time, and the payment of the handling fee is completed using BNB.

Discount rates of 50%, 25%, 12.5%, 6.75% and no discount.

2. Repurchase mechanism:

We will use 20% of the net profit of the Binance platform to repurchase BNB every quarter after the Binance platform is launched, and the repurchased BNB will be directly destroyed, and the repurchase record will be announced as soon as possible. Users can query through the blockchain browser to ensure openness and transparency until the total amount of 100 million BNB is destroyed.

3. Decentralized trading "fuel"

BNB is the fuel of the Binance decentralized on-chain trading platform. When using the Binance decentralized trading platform, you need to use BNB, including various functions such as deduction of handling fees and rewards.

Why did BNB rise?

The rise of BNB is mainly related to three things, the digital currency issuance platform, the public chain and the decentralized exchange.

Binance Launchpad: Binance’s version of Ethereum

Binance Launchpad is a blockchain asset issuance platform launched by Binance. To put it bluntly, it is an ICO platform, but most of the previous ICOs raised funds in units of ETH. BNB is here to raise money. Binance Launchpad plans to launch at least one new token per month in 2019.

There are currently two projects listed on Binance Launchpad, BitTorrent (BTT) and Fetch.AI (FET) , because ICO is prohibited in China, Binance Launchpad does not allow mainland users to use it, and many people buy foreign KYC (identity verification) materials Participating in the snap-up later, it was still difficult to grab the quota even though there were many restrictions. During the BTT snap-up, many users only grabbed one or two BNB purchase quotas. However, the users who can grab it have reaped a lot. BTT was directly promoted to ten times the currency of the bear market, which gave investors a wave of chicken blood.

Binance is not only an exchange, but also a blockchain ecosystem. Invest in incubation projects from Binance Lab, then conduct private placement on Launchpad, and finally list on Binance Exchange. Complete one-stop service.

Binance Chain: The First Shot of the Platform Coin Public Chain

2018 is known as the first year of the public chain. Within a year, countless public chain mainnets were launched, including the popular EOS, TRX, AE and so on. However, after the mainnet was launched, new underwear fell out. Last year, the three major exchanges Binance, Huobi, and OKEx announced that they would deploy public chains. Binance’s current demand for public chains is mainly used for its decentralized exchanges. Recently, the Binance Chain (Binance Chain) test network has been launched. Regardless of the application, this is good news.

Imagine, if some high-quality projects in the future choose to issue coins on the Binance Chain instead of the mainstream ETH or EOS, with Binance Launchpad’s private placement and Binance’s user support, will it be the same as Ethereum? What about the power of a battle?

Binance DEX: Decentralized Exchange

He Yi and Zhao Changpeng have repeatedly revealed their ideas about decentralized exchanges. As early as August last year, Zhao Changpeng had released news about Binance DEX.

The Binance DEX decentralized exchange has been released. Relying on the technical advantages of Binance Chain, Binance DEX can handle the current trading volume of Binance and solve the speed and performance problems faced by decentralized trading platforms.

Why does Binance, a centralized exchange, "beat itself"? At present, the decentralized exchange (DEX) on the market has not yet matured. Whether it is based on ETH or EOS, the transaction volume cannot catch up with a fraction of the centralized exchange. As the leader of centralized exchanges, Binance can rely on its huge user base to drive the development of its own DEX. BNB is used as the GAS (fuel) of Binance DEX. If DEX develops well, the value of BNB will also increase. In the future, Binance will realize the coexistence and development of centralized exchange + decentralized exchange, which will also be the key chain of Binance's entire ecology.