Question: What is BNB and where is it used?

Answer: BNB is a utility token of the ecosystem. It is used to pay fees, take part in staking and certain governance functions, and is also used in products and services around the ecosystem.

Question: Why use BNB on the Binance exchange?

Answer: On Binance, BNB can be used to pay trading fees (spot/margin/futures) at a discount and to access certain benefits, depending on account terms and platform programmes.

Question: How is BNB related to BNB Chain?

Answer: BNB is the native token of the network ecosystem: it is used to pay network fees and it participates in staking/validation mechanisms and related network functions.

Question: What is BNB Auto-Burn?

Answer: It is a mechanism that automatically calculates the quarterly amount of BNB to be burned based on the BNB price and the number of blocks produced during the period.

What is BNB (BNB)

BNB is the native token of the BNB Chain ecosystem: it is used to pay network fees, for staking/validation, and to participate in on-chain governance.

Launch 2017-07-03 BNB Chain (BSC / opBNB / Greenfield)

Who created it

Binance (team founded by Changpeng Zhao (CZ) and Yi He).

Why it was created

BNB was created as a utility token for the Binance ecosystem to provide practical benefits to platform users. Initially, its key role was to pay trading fees at a discount and to be used across various service mechanisms of the exchange.

How it’s used

Paying fees across the BNB Chain ecosystem (including BSC, opBNB, Greenfield)
Staking/validation and earning rewards
Participating in on-chain governance
Paying trading fees on Binance
Using it in dApps/DeFi/NFT on BSC as a base asset (liquidity pools, fees, collateral — depending on the protocol)

Risks

Regulatory and legal risk around Binance: changes in rules/licensing, investigations, and penalties may affect service availability and demand for BNB.
BNB’s dependence on the Binance ecosystem: if the exchange/services are restricted in key jurisdictions or reputation/trust deteriorates, BNB’s utility may decline.
Centralisation risk on BNB Smart Chain (PoSA, limited validator set): potential censorship, disruptions, or accelerated changes driven by a small group of participants.
Technology and smart-contract risk in DeFi on BNB Chain: hacks/protocol flaws can lead to losses and liquidity outflows (e.g., the Venus Protocol incident).
Bridge/cross-chain infrastructure risk: BNB Chain has had major bridge incidents historically, highlighting systemic vulnerabilities in cross-chain components.

FAQ

Question: What is BNB and where is it used?: Answer: BNB is a utility token of the ecosystem. It is used to pay fees, take part in staking and certain governance functions, and is also used in products and services around the ecosystem.
Question: Why use BNB on the Binance exchange?: Answer: On Binance, BNB can be used to pay trading fees (spot/margin/futures) at a discount and to access certain benefits, depending on account terms and platform programmes.
Question: How is BNB related to BNB Chain?: Answer: BNB is the native token of the network ecosystem: it is used to pay network fees and it participates in staking/validation mechanisms and related network functions.
Question: What is BNB Auto-Burn?: Answer: It is a mechanism that automatically calculates the quarterly amount of BNB to be burned based on the BNB price and the number of blocks produced during the period.