What is BNB?

BNB is the native utility token of the BNB Chain ecosystem, functioning as a multi-chain asset that supports decentralized applications and value exchange. It is primarily used for paying transaction fees and provides tiered discounts on the Binance exchange. The BNB ecosystem features a unified architecture that includes a smart contract platform, a Layer 2 solution, and a decentralized data storage network.

The network employs a Proof of Staked Authority consensus mechanism, with 21 active validators known as the Cabinet responsible for transaction verification. Validators are elected daily based on BNB stakes and face slashing penalties for misconduct. The token supply is capped at 200 million, with its initial distribution occurring in 2017. BNB was created by the Binance platform and migrated from the Ethereum network to its own architecture, which is compatible with the Ethereum Virtual Machine. Token holders participate in governance, voting on upgrades and economic changes.