Note: this is the latest section under development.
MISSION & NICHE
Per Binance website: "Binance Coin (BNB) powers the Binance Ecosystem. As the native coin of Binance Chain, BNB has multiple use cases: fueling transactions on the Chain, paying for transaction fees on Binance Exchange, making in-store payments, and many more."
Per page 9 of the Binance whitepaper, all Binance holders receive discounts on all exchange related fees, in the amounts of:
A 50% discount rate within the first year of ICO
A 25% discount rate within the second year of ICO
A 12.5% discount rate within the third year of ICO
A 6.75% discount rate within the fourth year of ICO
No discount beginning in the fifth year after ICO
Binance was the first exchange to perform an "IEO"; initial exchange offering.
As of Q4, 2019, you can use Binance Coin to trade over 100 other cryptocurrencies on the Binance platform, or buy Binance Coin as more of a speculative investment on over 30 other exchanges. Binance Coin gives users an alternative medium of exchange currency to trade with on the Binance platform. Bincance users can still choose to trade in other markets, namely- Bitcoin, Ethereum, and US Dollar Tether.
The Binance exchange facilitates staking and lending with a user's cryptocurrency deposits.
July, 2017- Binance Coin was launched by Binance, after an initial coin offering.
SUPPLY & INFLATIONARY CONTROLS
According to the Binance whitepaper: "A strict limit of 200MM BNB will be created, never to be increased."
No more than 200M BNB will ever enter circulation. 80M (40%) were issued to the founding team, 20M (10%) were issued to investors, and the remaining 100M (50%) were released as an ICO. The initial ICO purchases were done in BTC and ETH, on trading platforms around the world. The vesting schedule for the founding team is 20% of their BNB every year, over the course of 5 years.
Every quarter, a certain percentage of BNB is "burned" (permanently removed from supply). The burn amount is influenced by trading volume in the previous quarter. This supply removal will happen until 50% of the initial BNB supply has been destroyed; and only 100M BNB remain. Here are data and insights for the most recent, as well as previous, BNB burns. When total supply of an asset (in this case BNB) decreases, while demand remains the same, price will increase. Thus, an additional incentive to holding BNB is that, holding all other factors constant, the value of a user's BNB will increase, after each quarterly burn.
As of Q4, 2019- there are 187.5M total BNB in supply, with 155.5M in circulation
BNB started as an ERC20 token, built on the Ethereum blockchain. It was later migrated over to Binance's proprietary "Binance Chain".