BNB - Binance Coin
Binance Coin is a token issued by Binance, referred to as BNB, and is a decentralized blockchain digital asset based on Ethereum. The total issuance amount is constant at 200 million. BNB will be destroyed every quarter according to the trading volume of the Binance platform in that quarter. The destruction record will be announced as soon as possible. Users can query it through the blockchain browser to ensure openness and transparency until it is destroyed. Until the total amount reaches 100 million BNB coins.
Binance registration: https://www.binance.com/zh-CN/join?ref=ECZFCWPV (20% commission rebate)
As the fuel of Binance ecosystem and decentralized exchange, BNB has been applied to many scenarios, such as using BNB to deduct Binance transaction fees, with a maximum discount of 50%, using BNB to pay in Monaco Visa and APP applications, and using BNB to buy virtual gifts on Uplive live broadcast platform, etc. Currently, BNB ranks among the top 20 in the world, and the best ranking is the top 10 in the world, 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. Within half a year of its establishment, it quickly rose to the first tier of exchanges and topped the list of trading volume. To date, its trading volume is still among the top three in the world, and 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. Every quarter, 20% of the platform's net profit for the quarter will be used to repurchase BNB, and the repurchased BNB will be directly destroyed until the total amount of BNB coins is 100 million. Repurchase will cause BNB deflation. In theory, if the total value of BNB remains unchanged, repurchase can increase the price of the coin. So far, it has been destroyed eight times, the most recent one was in July 2019.
Calculated by USD/USDT price, the highest price of BNB in the bull market of 2018 was $23, and the current price (March 1, 2019) is around $11, which is half of the price in the bear market. Compared with the price changes of Bitcoin and Ethereum in the past year, this drop is at most a drop in price, and compared with those altcoins that have generally dropped ten, a hundred, or a thousand times, this is hardly a drop. What's more, the fact that the price doubled in two months in the bear market is the more eye-catching part for such an old currency.
Distribution ratio
1. ICO publicly issued 100 million BNB, accounting for 50% of the total issuance, and was carried out on three platforms at the same time: Binance official website, RenRenICO, and Bi9.
2. The founding team members held 80 million BNB in the early stage, accounting for 40% of the total issuance.
3. Well-known industry insiders hold 20 million BNB in angel round financing, accounting for 10% of the total issuance.
Value and buyback mechanism
1. Discount on Binance platform transaction fees
For users who participate in transactions on the Binance platform, no matter what tokens they are trading, when they need to pay transaction fees, if they hold sufficient BNB, the system will discount the fees they need to pay (see the table below for specific discount rates) and convert the equivalent amount of BNB based on the current market value, and use BNB to complete the payment of the fees.
Discount rates are 50%, 25%, 12.5%, 6.75% and no discount.
2. Buyback mechanism
After Binance is launched, we will use 20% of Binance's net profit every quarter to repurchase BNB. The repurchased BNB will be destroyed directly. The repurchase records will be announced as soon as possible, and users can query them 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 Binance's decentralized on-chain trading platform. BNB is required when using Binance's decentralized trading platform, including various diversified functions such as deducting transaction fees and giving rewards.
Why is BNB rising?
The rise of BNB is mainly related to three things: digital currency issuance platform, public chain and decentralized exchange.
Binance Launchpad: Binance’s version of Ethereum
Binance Launchpad is a blockchain asset issuance platform launched by Binance. To put it simply, it is an ICO platform. However, most of the previous ICOs raised funds in ETH, while Binance's ICO raised funds in its own BNB. Binance Launchpad plans to launch at least one new token every month in 2019.
Currently, Binance Launchpad has two projects listed, BitTorrent (BTT) and Fetch.AI (FET). Since ICO is prohibited in China, Binance Launchpad does not allow mainland users to use it. Many people purchase foreign KYC (identity authentication) information and participate in the rush to buy. Even with many restrictions, it is still difficult to grab the quota. When BTT was rushed, many users only grabbed one or two BNB purchase quotas. However, the users who were able to grab them all reaped a lot of rewards. BTT was directly promoted to a ten-fold coin in the bear market, which gave investors a boost.
Binance is not only an exchange, but also a blockchain ecosystem. It invests in and incubates projects in Binance Lab, then conducts private placements on Launchpad, and finally goes online on Binance Exchange. It is a complete one-stop service.
Binance Chain: The first public chain of platform coins
2018 is known as the first year of public chains. Within a year, numerous public chain mainnets were launched, including the popular EOS, TRX, AE, etc. However, after the mainnets were launched, they all fell to new lows. Last year, Binance, Huobi, and OKEx, the three major exchanges, 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 testnet 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 the private placement of Binance Launchpad and the user support of Binance, will they be able to compete with Ethereum?
Binance DEX: Decentralized Exchange
He Yi and Zhao Changpeng have revealed their ideas about decentralized exchanges many times. As early as August last year, Zhao Changpeng released news about Binance DEX.
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 would Binance, a centralized exchange, want to “fight itself”? Currently, decentralized exchanges (DEX) on the market have not yet become popular. Whether based on ETH or EOS, the trading volume can’t catch up with a fraction of centralized exchanges.
As the leader of centralized exchanges, Binance can rely on its huge user base to drive the development of its own DEX. BNB is the GAS (fuel) of Binance DEX. If DEX develops well, the value of BNB will also increase. Binance will subsequently achieve the coexistence and development of centralized exchanges + decentralized exchanges, which will also be the key link of Binance's entire ecosystem.
