Many investors reject BNB as merely “Binance -the coin”, but this term fails to recognize its wider value locks. While BNB was initially launched as the native token for the Binance chain (now BNB Smart Chain), and its early token burns were tied to Binance’s quarterly profits, BNB develops into a decentralized asset with several application cases and reasons for economic value.

While BNB can enjoy some value information from the expansion of Binance, its token supply model and the development of the BNB chain offer two independent value sources. First, BNB functions as a store with value through quarterly and retention of BNB-burning mechanisms. Secondly, it drives the smart contract functionality via BNB Smart Chain, which has become a growing hub for defi and game applications.

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Deflationary Store of Value

BNB’s internal combustion mechanism separates it from almost any other cryptocurrency. Let’s compare BNB with BTC, Eth and Sun:

• BTC: Inflationary, but with a uncovered supply.
• ETH: Inflationary or deflationary due to unpredictable combustion rates tied to network activity.
• Sun: Inflationary, starting at 8% and falling over time.

BNB’s combustion process is unique; It removes tokens from circulation based on the number of blocks produced and average price every quarter as well as has a fixed ratio of gas fees, accumulated in each block. Nearly 60 million BNB (~ $ 35 billion at current prices) has been burned so far, reducing circulating supply to 142 million. The last quarterly combustion alone wiped out BNB of $ 1 billion from existence – an annual annual deflation speed of 4.6%!

Bitcoin is currently commanding the most attention as a store with value -active due to its first Mover advantage, market capital and a robust, decentralized network of miners. Any change in the Bitcoin code (ie changing the target supply) would be necessary to be agreed by most of the network, which would prove to be very difficult with Bitcoin’s decentralization level. Investors should note that BNB Burn has already been changed from its original White Paper, so there is no guarantee that it will not change further. This is the exchange with an aggressive token combustion strategy.

Source: bnbburn.info

BNB -Chain -a modular L1 -Cosystem

BNB’s next development is the BNB One Chain initiative aimed at uniting a multichain -ecosystem built for interoperability in web3:

• BNB Smart Chain (BSC): A quick, cheap, EVM compatible defi-hub.
• BNB Greenfield: A decentralized warehouse network for real -time, monetizable data.
• BOBNB: An Ultra-low fee (SUB- $ 0.0001 per transaction) High-Throughput Rollup, built for on-chain games and high-demand DAPPS.

With several heads against Ethereum (namely LAG 2 fragmentation and inflationary concerns), BNB’s One Chain initiative provides a viable alternative to developers and web3 applications.

Now it’s not all rainbows and butterflies with BNB. Investors should still consider the risk that their decentralization push is only a marketing stunt, as well as the ongoing legislative matches over Binance’s know-your-Customer (KYC) policy and other issues.

With Richard Teng now at the helm of the Exchange, Binance and BNB’s next chapter are likely to be focused on compliance and work with regulators/exchanges to increase access to the BNB token. With BNB, which is mostly not available on US exchanges, Token has still achieved a market capital of $ 100B with international support alone. As US crypto regulations facilitate, BNB’s re -entry into US markets can be a significant catalyst for further growth.

Information:

Osprey Funds Managing Osprey BNB Chain Trust (OBNB), a Trust with a single assets that give exposure to BNB and quoted in public in the OTCQX market. Investors can learn more and read the trust prospectus at ospreyfunds.io. Matt does not own no BNB or Obnb.