What is BNB?

BNB is the native utility token of the BNB Chain, which serves multiple functions including payment for transaction fees and smart contract deployments. It operates within a unified multi-chain architecture incorporating a smart contract platform, a Layer 2 scaling solution, and a decentralized data storage network. Launched in 2017 by the Binance platform, BNB initially distributed 50% of its 200 million token supply to the public, with significant allocations for the founding team and angel investors.

The network utilizes a Proof of Staked Authority consensus mechanism, relying on a group of 21 validators to verify transactions and produce blocks. Validators are elected daily based on staked BNB, ensuring security through fast finality and penalties for malicious behavior. Economic sustainability is maintained through a dual-burn strategy, which includes real-time fee destruction and quarterly buybacks. BNB's utility extends to participating in decentralized governance, allowing holders to vote on upgrades and economic adjustments.