BNB & Binance: History and Changpeng Zhao
Binance is the world's leading cryptocurrency exchange, founded in 2017 by entrepreneur Changpeng Zhao (CZ). Binance Coin (BNB) is the cryptocurrency issued by Binance, originally created for use within the Binance ecosystem. In this article, WEEX Crypto Wiki provides a neutral overview of the history of Binance and BNB, the biography of founder CZ, the operating mechanisms and applications of BNB, as well as information on the tokenomics (supply, distribution, and burn mechanisms) of this coin.
History of Binance and BNB
Binance launched in mid-2017 through an Initial Coin Offering (ICO) for Binance Coin (BNB), raising approximately 15 million USD in initial capital. The initial goal of Binance was to build a cryptocurrency exchange with a user-friendly interface, high performance, and 24/7 customer support—addressing the limitations of exchanges at the time. Thanks to this strategy, after just 6 months of operation, Binance rose to become the cryptocurrency exchange with the largest trading volume in the world and has maintained this leading position to this day. BNB was originally created as a utility token so that Binance users could pay trading fees with attractive discounts.
During its development, Binance has continuously expanded its ecosystem. In 2019, Binance launched Binance Chain—a dedicated blockchain that allowed BNB to be issued as an independent coin (previously, BNB existed on the Ethereum network according to the ERC-20 standard). Subsequently, in September 2020, Binance introduced the Binance Smart Chain (BSC) to support smart contracts, helping Binance expand into the field of decentralized finance (DeFi) and decentralized applications (dApps). The combination of Binance Chain and BSC merged into BNB Chain in 2022, emphasizing the central role of BNB in Binance's blockchain ecosystem. These developments have solidified Binance's position as a comprehensive cryptocurrency ecosystem, far exceeding the functionality of a standard exchange.
Biography of Founder Changpeng Zhao (CZ)
Changpeng Zhao (CZ) is a Chinese-Canadian technology entrepreneur, born in 1977 in Jiangsu province, China. He graduated with a degree in computer science from McGill University (Canada) and began his career as a software engineer in the financial sector. CZ participated in developing order matching systems for the Tokyo Stock Exchange during his internship and later worked at Bloomberg Tradebook on Wall Street, where he was responsible for developing futures trading software. At Bloomberg, CZ advanced rapidly, receiving three promotions in less than two years, and was managing development teams in New Jersey, London, and Tokyo by the age of 27.
In 2005, Changpeng Zhao left Bloomberg to start his own business, founding Fusion Systems in Shanghai, which specialized in building high-frequency trading (HFT) systems for stock brokerage firms. The turning point for CZ came in 2013 when he was introduced to Bitcoin by two friends. He studied Bitcoin deeply and decided to invest heavily—even selling his apartment in Shanghai to buy Bitcoin, demonstrating his strong belief in the future of cryptocurrency. CZ later joined the development team of the cryptocurrency wallet Blockchain.info and served as Chief Technology Officer (CTO) at the cryptocurrency exchange OKCoin, gaining valuable experience in the crypto industry.
With the knowledge and experience he accumulated, Changpeng Zhao founded Binance in 2017. Under CZ's leadership, Binance grew rapidly and soon became the world's largest cryptocurrency exchange after just a few months. The success of Binance also made CZ one of the most influential figures in the blockchain industry. He frequently appears on lists of the wealthiest people in the cryptocurrency sector; Forbes ranked CZ as the 24th richest person in the world as of 2025, with an estimated net worth of approximately 64.8 billion USD. CZ's role is not limited to running Binance; he is also considered a pioneer who has shaped the cryptocurrency industry through his vision and influence.
Operating Mechanisms and Applications of BNB
Operating Mechanisms on Binance Chain and BNB Smart Chain
BNB was initially issued as an ERC-20 token on the Ethereum blockchain, then swapped to become the native coin on Binance Chain in 2019. Today, BNB is the official token on the BNB Chain (including BNB Beacon Chain and BNB Smart Chain) and acts as "fuel" for this ecosystem—all transactions on the BNB Chain use BNB to pay network fees. The BNB Smart Chain operates based on a consensus mechanism known as Proof of Staked Authority (PoSA), which allows participants to stake BNB to become validators or delegate to validators, thereby helping to operate the network and receive rewards.
Applications within the Binance Exchange and Ecosystem
Within the Binance ecosystem, BNB has many important applications and functions. First, Binance exchange users can use BNB to pay trading fees with significant discounts—for example, in the first year after launch, Binance applied a 50% discount on trading fees when paid with BNB (decreasing in subsequent years). BNB is also used to pay for various other fees and services: from trading fees on Binance DEX (Binance's decentralized exchange) to paying fees on decentralized applications running on the BNB Smart Chain. Additionally, BNB has become a means for users to participate in token sale events on Binance Launchpad—holding BNB makes users eligible to purchase newly issued tokens on Binance.
Expanding Applications Outside of Binance
Beyond the Binance ecosystem, BNB is gradually being widely accepted as a multi-purpose cryptocurrency. Many businesses and platforms allow the use of BNB to pay for goods and services (e.g., booking hotels, buying airline tickets, paying for digital content). BNB holders can also stake or deposit BNB in savings and investment programs to receive rewards or interest through products like Binance Earn. Thus, from an initial utility token serving the exchange, BNB has developed into a versatile cryptocurrency, linked to all activities in the Binance ecosystem and present in many external blockchain applications.
Tokenomics of BNB
Initial Supply and Distribution
BNB had a fixed total supply of 200 million tokens at the time of its 2017 launch. These tokens were allocated according to the initial plan as follows: 50% (100 million BNB) was sold publicly in the ICO to raise capital for Binance, 10% (20 million BNB) was reserved for angel investors (early investors), and 40% (80 million BNB) was allocated to the founding team and Binance development team.
Coin Burn Mechanism
Binance implements a periodic BNB burn mechanism to reduce the circulating supply and create scarcity, which can support the value of the coin. According to project documentation, Binance commits to using 20% of the exchange's quarterly profits to buy back and burn BNB until the total supply is reduced to 100 million BNB (equivalent to 50% of the initial supply being burned). These coin burn events take place quarterly and are publicly announced by Binance. For example, in the second quarter of 2024, Binance burned approximately 1.94 million BNB (worth approximately 670 million USD) in its 27th coin burn. Regular coin burns reduce the number of BNB circulating in the market, thereby increasing the scarcity of BNB over time.
Conclusion
In summary, BNB has played the role of the backbone in the Binance ecosystem since its inception. From its history of formation during the cryptocurrency market boom in 2017, Binance and BNB have developed strongly under the leadership of Changpeng Zhao. The BNB coin not only serves the operations of the Binance exchange (such as reducing trading fees) but has also become a versatile cryptocurrency, present in many digital financial applications. With clear tokenomics—a fixed supply and a regular coin burn policy—BNB has affirmed its position as one of the largest and most important cryptocurrencies in the current crypto market.
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