Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transactions per second.
BNB is built on Ethereum blockchain and uses ERC20 tokens which can store and hold value. However, you can't mine tokens as they have been pre-mined and distributed through ICO. Tokens in circulation are used for discounted trading on Binance Exchange. The discount rate started at 50% in the first year, but it's scheduled to be cut in half every year.
By the fifth year, there will be no discount which will affect the value of the token. To counter the value deprecation, Binance has been buying back tokens and destroying them to reduce the supply. The cryptocurrency exchange plans to eliminate half of the tokens in circulation.
BNB also now has an incarnation on the Binance Smart Chain (BSC), Binance's own smart contracts blockchain.
