BNB powers the Binance ecosystem and is the native asset of Binance Chain. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for fee reduction on the Binance exchange, its scope was extended over the years.
BNB powers the Binance Chain as itsnative chain token. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.
In addition to its on-chain functions, BNB has multiple additional use-cases such as fee discount on multiple exchanges (e.g., Binance.com), payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.
At the core of the economics of BNB, there is a burn system leading to period reductions in its total supply (~ every three months). From its initial maximum supply of 200 million, burns will keep occurring until the supply reaches 100 million.