Binance Coin (BNB)
Binance Coin (BNB) is an ERC20 token issued on the Ethereum blockchain by the cryptocurrency exchange Binance. With this cryptocurrency, the users can pay a сommission for transactions on the exchange.
How to use Binance Coin with Trezor
|Firmware (device) support||Trezor One (v1.6.2.), Trezor Model T (v2.0.7.)|
|Available in Trezor Wallet?||Yes (Beta) (as an ERC20 Token)|
|Third-party wallets||MyEtherWallet, MetaMask, MyCrypto|
It is possible to use Binance Coin with Trezor on the Beta Wallet as an ERC20 token. For more information, see this manual: New cryptocurrencies in Beta Wallet. As an ERC20 token, it can also be used with third-party applications, such as MyEtherWallet and MyCrypto.
Technology and usage
|Max Supply||Issue Date||Consensus Protocol||Type|
|Cryptographic Algorithm||Source Code||White Paper||Website|
|Ethash||-||EN (a PDF file)||https://www.binance.com/|
Table source: The Binance website
Binance Coin was issued by the exchange Binance. Its main purpose is meant to be "the underlying gas that powers the Binance Ecosystem.". This practically means that BNB is used when paying transaction fees in the exchange.
To incentivize the usage of the coin, transaction fees paid in BNB have been set to have a 50% discount during the first year of the usage of the coin. This discount is then halved yearly. Starting from the fifth year of the usage, the discount will no longer apply.
Although the value of the coin has been growing during its initial period, the future of the token is tightly linked to the performance of the exchange. The token can only be successful as long as Binance thrives.
To gradually reduce the coin supply and thus increase its value, Binance has also introduced a repurchasing plan. This plan means that Binance vowed to use 20% of its profits to buy back and burn some of the coins in circulation until there is only 100,000,000 left. All buy-back transactions should be transparently published on the blockchain.
Binance plans to build a decentralized exchange, Binance Chain, where BNB should be one of the base assets as well as the gas for the network.