This Is How Many BNB There Are

Binance Coin (BNB) is quite different from most cryptocurrencies. Launched in 2017, the asset has stamped its presence in the crypto market as a force to reckon with. This article explains the BNB creation process, the cryptocurrency’s total supply, and present circulation.

  • BNB, which stands for ‘Build N Build,' originally had an initial token supply set at 200 million coins, as predetermined by its founders (Binance).
  • The Binance team has actively pursued reducing this supply to 100 million coins through quarterly token burns.
  • Over 150 million BNB coins are in circulation, but the supply is constantly decreasing due to crypto burn.
  • Investors can stake BNB tokens but not create new BNB coins via staking.

So, How Many BNBs Are Left Now?

There are over 153 million Binance Coins in circulation. BNB has a fixed maximum market supply, meaning that the total number of Binance Coins that can exist has been predetermined from its inception. This distinct characteristic is what sets BNB apart from conventional fiat currencies and stablecoins, which lack supply constraints. In addition, no additional BNBs can ever be generated or minted.

The Number of BNBs That Were Created

BNB started with a total supply of 200 million coins. 50% of the total token supply (about 100 million) was offered during a crowdfunding or initial coin offering (ICO) event between June 26 and July 3, 2017. 40% (about 80 million coins) was distributed to the founding team, while 10% was allotted to early angel investors.

However, since then, the circulating supply of BNB has significantly decreased due to a series of token burn events. These are quarterly events in which a certain percentage of the BNB coins are removed from open use.

In addition, a certain percentage of all gas fees generated from transactions executed on the Binance blockchains are also burnt in each block. The validators of the respective blockchain networks determine the particular percentage or ratio. This idea was formalized in the Binance Equilibrium Points (BEP-95) proposal. Due to these buyback and token burn policies, Binance exchange has successfully executed 24 burn events, removing more than 38 million BNB tokens from circulation.

This Is When The Last BNB Will Be Created

BNB employs a fixed or hard-cap token supply system, wherein the coin's developers have predetermined the maximum number of digital assets that will ever be in circulation. The total asset supply of Binance Coins is 200 million as mentioned above – the number of coins created at launch. As such, no new BNB coins can ever be mined by the network validators on the BNB Chain.

The absence of future BNB creation and the token burn contribute to the digital asset's deflationary nature, as it has a limited number of tokens available to meet increasing demand.

We Need To Explain How BNB Is Created

The Binance Coin has been central to the operation of the fledgling Binance ecosystem since its launch in the July 2017 ICO event. Since all of the total asset supply was released during its launch, new BNB coins cannot be created at the most basic level. However, users can participate in staking by locking up their digital funds with validators to earn rewards for securing the network.

The BNB Beacon Chain is a smart contract network that operates using a version of the new generation algorithm called proof-of-stake (PoS) and proof-of-authority (PoA). The algorithm allows the 21 pre-approved validators to verify transactions on the BNB Chain faster and more efficiently.

BNB Can Be Lost Forever

Cryptocurrencies like the Binance Coin are built on blockchains, making them immutable, decentralized, and unrecoverable if lost. Since assets like BNB are digital, they are stored in cryptocurrency wallets. The most popular wallets are categorized as either online (software) or offline (cold or hardware) cryptocurrency wallets.

BNB coins may be permanently lost if a crypto wallet housing the cryptocurrency is compromised due to a security breach or negligence. Binance Coins could also be lost if you inadvertently send them to an incorrect recipient address or an unsupported blockchain network. Therefore, it's best practice to copy and paste the recipient's wallet addresses to ensure accuracy.

Frequently Asked Questions

Does BNB have a max supply?

BNB's supply changes every quarter due to its burn mechanism. From its inception in 2017, the BNB asset was created with a 200 million maximum token supply. However, the Binance exchange aims to drive this figure down to 100 million in total supply by permanently burning BNB coins every quarter.

What happens when BNB reaches max supply?

Once BNB hits its maximum supply, the digital asset might see its value climb upwards. However, most altcoins like BNB mirror the price movement of Bitcoin. Therefore, if BTC climbs upward, the rest will likely follow and vice versa.

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