BNB
Crypto Overview
Understanding the Intended Utility
BNB was originally created as a utility token for the Binance exchange in 2017, designed to provide traders with discounted trading fees. The token's utility has since expanded significantly as it became the native cryptocurrency of the BNB Chain (formerly Binance Smart Chain), serving as the backbone for an entire ecosystem of decentralized applications.
Current Utility Assessment
BNB currently serves multiple legitimate purposes: 1) Powers transaction fees on the BNB Chain, 2) Enables discounted trading fees on Binance, 3) Facilitates token launches through the BNB Chain, 4) Powers smart contract operations, and 5) Serves as a governance token for the BNB Chain ecosystem.
Real-World Adoption
BNB demonstrates substantial real-world adoption with over 1,300 active dApps on BNB Chain and millions of daily transactions. The token is actively used for its intended purposes, with significant on-chain activity showing legitimate utility beyond speculation.
Token Distribution and Founder Assessment
Initial token distribution allocated 40% to the founding team and 10% to private investors, with proper vesting schedules. Binance practices regular token burns to reduce supply, with 50% of total supply designated for gradual burning. The development team maintains active protocol development with regular updates and improvements.
Revenue Model Analysis
The primary revenue streams come from transaction fees, trading fees, and ecosystem participation, which are halal sources of income. However, some DeFi applications built on BNB Chain involve interest-bearing products, though these are optional and not inherent to BNB itself.
Crypto Impact
To assign a comfort level investing in BNB from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to BNB.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.