Binance Coin (BNB) is the native asset of Binance, the world’s largest centralized cryptocurrency exchange by trading volume, routinely processing more than $14 billion in daily trades. In crypto, a mainnet is a blockchain’s live, production network where real transactions occur, meaning assets on mainnet represent real, transferable value that can be traded or spent within the ecosystem. By contrast, a testnet is a separate testing environment where tokens typically have no real-world value and are used to trial features safely before deployment; many projects also have their own mainnets, and there are hundreds of crypto mainnets overall, including Bitcoin’s dedicated Bitcoin mainnet.
BNB acts as a utility token that trades like other cryptocurrencies. Beyond trading, people use it for:
- Trading
- Paying for goods and services
- Joining token sales
- Sending virtual gifts
- Receiving discounts on trading fees
- Supporting loans and transfers
- Making credit card payments
Mainnet and Blockchain Migration
BNB started life as an ERC-20 asset on the Ethereum network and later moved to Binance’s own blockchain, known as Binance Chain, where it runs on the project’s live main network. In typical development, new features are tested on a testnet before deployment to the production chain; when a mainnet launches, it marks the shift from trial activity to real transactions, often involving a token swap or migration so users can move holdings onto the live chain.
The BNB Chain architecture uses two coordinated blockchains that both rely on BNB.
- BNB Beacon Chain: Oversees governance for the BNB Chain ecosystem.
- BNB Smart Chain (BSC): Runs the Ethereum Virtual Machine (EVM) to execute smart contracts and remains compatible with Ethereum DApps.
Benefits commonly include real asset transfers, stronger security practices, increasing decentralization over time, and more applications built on top; at the same time, mainnet launches can affect prices by drawing attention and confidence, while also introducing short-term volatility as the market reacts to the rollout.
Token Launch and Distribution
In 2017, BNB debuted through an initial coin offering that created 200,000,000 BNB. The sale introduced the cryptocurrency to early backers and the wider market.
| Allocation Category | Percentage |
|---|---|
| Angel investors | 10% |
| Founding team | 40% |
| Other participants | 50% |
To manage supply, Binance uses a quarterly auto-burn designed to reduce total BNB to 100,000,000. In addition, under Binance Evolution Proposal 95 (BEP-95), roughly 860 BNB are burned each day.
These measures aim to constrain supply and may support the value of remaining tokens over time. The approach provides Binance Coin holders with a structured, long-term plan that is set out in advance.
