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YZi Labs @yzilabs released the "BNB Report", which contains a large amount of information. For example, Changpeng Zhao’s personal holdings of BNB are less than 1% of the circulating supply. In addition, #Aster was also mentioned. Aster's on-chain sustainability heralds Hyperliquid's leadership, pushing BNB Chain to break through BNB and positioning itself as the trading engine of the global Web3 economy. #BNBChain will be significantly updated in 2026 and beyond to achieve a CEX-like experience. Currently, BNB’s holding structure is widely dispersed, with approximately 66-67% of BNB held by non-affiliated public holders (on exchanges or self-custody), approximately 27% used by the BNB Foundation for programmatic supervision, and Binance Treasury accounting for approximately 4-5%. BNB mainly reduces the circulating supply through two complementary mechanisms: Auto-Burn and BEP-95.   BNB in-depth analysis report (full text translation)authorHaley H (Investment Director of YZi Labs), Ella Z (Head of YZi Labs) executive summaryBNB ("Build N Build") is the native token supporting BNB Chain, which is becoming the core infrastructure of the future global Web3 world. Compared with similar assets such as Ethereum (ETH, decentralized financial infrastructure) and Bitcoin (BTC, value storage tool), BNB is positioned as an efficient trading engine for the global Web3 economy. As a top-tier coin, BNB is designed with a deflationary structure. Its circulation supply is fully released, and the ownership on the chain is dispersed (about 67% is held by the public) ； About 27% has been destroyed ； Zhao Changpeng’s personal holdings account for less than 1% (see text for data source), which greatly reduces unlocking risks and centralization risks, thereby enhancing institutional trust. According to data from Dune and Nansen, the BNB Chain ecosystem ranks first in the world in terms of decentralized exchange (DEX) transaction volume, number of active users, and number of stablecoin wallet addresses, covering multiple fields such as decentralized finance (DeFi), artificial intelligence (AI), memes, real world assets (RWA), and consumer applications. Holding BNB can provide one-click access to a wide range of on-chain ecosystems across the entire industry. The key is that BNB is considered the only token that allows users to have full access to the entire process of Web3 asset issuance and circulation (the historical native holding return rate is about 15%-20%). It covers all levels and areas of Web3's core assets: from blue-chip tokens listed on exchanges, to mid-cap narrative tokens, to emerging long-tail tokens on BNB Chain. BNB enables users to directly participate in the growth and value creation of the entire crypto asset ecosystem, seamlessly connecting centralized finance (CeFi) and decentralized finance (DeFi). Among the Layer-1 tokens qualified to issue digital asset trusts (DAT), BNB has demonstrated strong performance through multiple rounds of market cycles, with an annualized increase of up to approximately 113%, outperforming ETH, BTC and SOL (see text for data source). For institutional investment portfolios, BNB has the potential for structural decoupling and asymmetric upside, which can enhance the diversification of multi-asset strategies and increase risk-adjusted returns. BNB has previously had limited exposure in the US market, but this situation is gradually changing: mainstream exchanges including Robinhood and Coinbase have launched the BNB DAT/ETF issuance process and BNB listing plans. Diversified BNB-denominated financial products such as BNB DAT, ETFs, and dividend funds will further release the liquidity of traditional finance (TradFi) and expand its financial functions. In addition, Changpeng Zhao's recent pardon has sent a strong positive signal to the market, providing a special window of opportunity for BNB to expand acceptance and adoption in North America and around the world. Table of contents
1. BNB Overview1.1 Introduction to BNBBNB is the native token of BNB Chain and undertakes the core utility and governance functions on the chain. The token was first issued in 2017 and has now developed into a highly practical deflation token that is widely used in various Web3 scenarios - including payment of BNB Smart Chain (BSC) Gas fees, verification node staking, on-chain governance voting, etc. In addition to BNB Chain itself, BNB is also incorporated as a utility token by other platforms. For example, on the Binance Centralized Exchange (CEX), users holding BNB can enjoy discounts on transaction fees and participate in token issuance projects such as Launchpool (launch pool) and Megadrop (large airdrops). The combination of these off-chain application scenarios and on-chain uses highlights the increasing importance of BNB as a multi-scenario Web3 token across decentralized and centralized ecosystems. BNB adopts a dual destruction mechanism, including programmed automatic destruction (Auto-Burn) based on on-chain activity and price, and a BEP-95 destruction mechanism that destroys part of the Gas fee in real time. The two mechanisms work together to continuously reduce the circulating supply of BNB through network driving, so that the supply matches the network usage. Each transaction on BNB Chain adjusts supply based on actual economic activity to provide support for network sustainability and aims to maintain a balance between usage, network capacity and token demand. This design ensures that when the usage of BNB Chain increases, the token supply will be adjusted accordingly (the upper limit is 100 million). The total amount of BNB currently in circulation is approximately 137.7 million. As of October 27, 2025, more than 64.3 million BNB have been permanently removed through destruction, gradually converging towards the supply limit. This transparent and predictable deflation model enhances the market's confidence in the long-term ecological value of BNB. 1.2 BNB utilityAs a Layer-1 native tokenBNB is the core digital asset of BNB Chain, running on the multi-dimensional support chain. It can be used as transaction gas fee or as a mortgage asset pledged by verification nodes to provide guarantee for network security. Holders can entrust BNB to verification nodes and obtain protocol rewards by participating in network security maintenance. At the same time, BNB has on-chain governance functions, and pledgers can vote on protocol upgrades and important ecological proposals.  BNB runs natively on BNB Chain, a high-performance, Ethereum Virtual Machine (EVM)-compatible blockchain that is currently being expanded into a complete three-chain architecture:
BNB is deeply integrated into the DeFi ecosystem of BNB Chain and is widely used as mortgage assets, liquidity certificates and governance pledges in platforms such as Aster (perpetual contract DEX), Venus (lending agreement), PancakeSwap (DEX), Lista DAO (liquidity pledge/BNB financial agreement) and other platforms. According to DeFiLlama data, as of October 29, 2025, the total lock-up value (TVL) of BNB Chain's DeFi ecosystem is approximately US$16.2 billion. According to bnbchain.org data, there are approximately 26 million BNB pledged on the chain, accounting for 19% of the total supply. These application scenarios highlight the dual attributes of BNB: it is not only the "fuel" infrastructure for network operation, but also a high-value asset in decentralized applications and the evolving modular Web3 ecosystem.  Overall, DEX on BNB Chain (especially PancakeSwap) occupies a leading position in the field of decentralized trading, further demonstrating BNB's leading role in on-chain liquidity and ecological development. As Utility Token: Platform Token with Loyalty ProgramBNB’s utility extends to loyalty token functionality throughout the ecosystem. By simply holding BNB, users can obtain the right to participate in special projects and exclusive rights. For example, BNB holders can participate in new token issuance through Launchpool, obtain airdrops through projects such as Megadrop and HODLer, and enjoy community rewards such as Binance Alpha. These community membership benefits encourage users to hold tokens for a long time and actively participate in platform activities. Holders can obtain exclusive participation rights in new token issuance, various token gifts, substantial transaction discounts and many other benefits, which distinguish BNB from ordinary single-function or dual-function tokens.  1.3 Market structureLayer-1 patternBNB's extensive integration - from DEXs such as PancakeSwap to RWA tokenization projects - demonstrates its embedded status as infrastructure, both supporting on-chain finance and empowering off-chain enterprise cooperation. This ecological breadth makes BNB one of the most operationally relevant tokens on the market and critical for any Digital Asset Trust (DAT) wishing to participate in the full Web3 economy. BNB Chain is regarded as one of the most powerful Layer-1 blockchains in 2025, leading its peers in indicators such as user activity and network transaction volume. Its growth is driven by the organic combination of retail user adoption, developer momentum and ecological depth. Compared with competing products such as Ethereum, Solana, Base, AVAX, SUI, Aptos, etc., BNB Chain performs better in terms of scalability and user stickiness, demonstrating its strategic value in the Web3 ecosystem. BNB Chain core highlights in October 2025:
Centralized Exchange (CEX) PatternThe traffic entrance of cryptocurrency exchanges is the strategic high ground of the Web3 ecosystem and the main portal for new users to enter the digital asset field. According to reports, Binance CEX accounts for about 55% of the traffic entry share, becoming the first point of contact for most cryptocurrency players in the world. BNB is at the core of this traffic entrance. By providing transaction fee discounts, early launchpad participation rights, ecological rewards and other mechanisms, it transforms user activity into an asset engine and realizes the transformation of original traffic into continuous liquidity, network effects and platform value capture. This design has strategic significance: at the exchange level, inlet traffic constitutes the demand inflow of the Web3 ecosystem. Link network usage to native tokens with clear utility and governance functions to achieve simultaneous growth in network throughput and token utility, aligning adoption incentives with market participation. 2. BNB economic modelBNB adopts a programmed self-balancing design, with the supply upper limit set at 100 million, and is regulated by two complementary mechanisms: Auto-Burn and BEP-95 destruction - through quarterly destruction and destruction based on real-time activity and value flow, the circulating supply is continuously reduced. So far, the two mechanisms have permanently destroyed more than 64 million BNB, accounting for more than 31.8% of the total historical supply. Based on the BNB price of approximately US$1,115 on October 26, 2025, the total value of burned tokens is approximately US$72 billion (see Figure 7 below). This design essentially has programmed deflation properties and builds a supply regulation system in which token issuance is directly linked to on-chain activity. As usage increases, the protocol automatically reduces the available supply, forming a feedback loop that stabilizes value and reduces the excessive circulation rate of tokens. This structure converts activity into ecological balance: the higher the network usage, the stronger the monetary base’s ability to self-correct. When usage and price rise, more BNB is destroyed and supply shrinks ； When activity drops, the burn rate decreases and supply stabilizes. This design principle makes BNB's supply model a stable mechanism oriented to long-term balance. The ownership structure of BNB has evolved into an extensive ecological holding and usage model, and the distribution of token holdings is highly dispersed:
About two-thirds of the supply is held by unaffiliated public holders (exchanges and self-custodial), with Changpeng Zhao’s personal shareholding below 1%. The Binance Exchange treasury holds 4%-5% of the total circulating BNB. About 27% of the circulating BNB is held by the BNB Foundation and is used exclusively for programmatic destruction (not sold to the outside world) - this transparent on-chain mechanism continues to strengthen BNB's deflationary design. In addition, the largest marked wallet is a destruction/operation/custodial wallet with non-controlling positions, indicating low internal concentration and a more transparent, decentralized and fair distribution of tokens. 3. Growth narrative3.1 BNB Chain Roadmap and ProductizationBNB Chain is promoting the transformation into a "real global decentralized financial system", aiming to create a high-throughput, multi-chain platform that supports institutional-level transactions, full-spectrum digital asset issuance and real-world asset integration. The core goals of the current roadmap include:
A typical case shows that in mid-2025, Binance launched the liquidity incentive and developer program Binance Alpha, which triggered a surge in DEX activity on the chain. Data shows that BNB Chain's DEX transaction volume once accounted for more than 70% of the total spot transaction volume on the chain, highlighting the potential depth of user and developer participation in the ecosystem. Looking to the future, the next generation of BNB Chain (2026 and beyond) will be committed to achieving a "CEX-like experience" and serving millions of "global decentralized financial system" users. Core function upgrades include:
These core functions will build a modular trading architecture designed for digital asset issuance, discovery and settlement. BNB Chain is expected to become the preferred infrastructure for on-chain financial markets, and BNB will be the core component of this infrastructure. 3.2 Stablecoins, payments and real-world applicationsBNB supports users to interact with various Web3 assets on BNB Chain, and is gradually developing into a core asset that integrates transaction and mortgage functions, empowering DeFi, payment and tokenization applications on the chain. BNB Chain continues to rank among the top in the world in terms of stablecoin transaction volume and number of active users. Recent cooperation has further expanded the application scenarios of BNB Chain:
These initiatives promote BNB to become a full-scenario utility token across DeFi, payment and even tokenized real-world applications. The breadth of application scenarios shows that BNB’s role is expanding from the cryptocurrency niche to mainstream financial and practical scenarios. BNB Chain has nurtured thousands of projects covering decentralized finance, games, social tokens, non-fungible tokens (NFT) and other fields. As these ecological indicators grow, the importance of BNB increases simultaneously - it is the value carrier throughout the entire ecological economy. If users want to participate in the issuance of new projects on BNB Chain or use the latest DeFi applications, they usually need to hold BNB. BNB is at the core intersection of the development of CeFi and DeFi. This unique positioning drives its demand to continue to grow and its user base to continue to expand. As Web3 becomes more popular around the world, BNB's diverse utility and deflationary design are expected to support its long-term value, deeply binding its growth to ecological development rather than relying solely on the speculative cycle. 3.3 U.S. market unlocking: Structural catalysts driven by Changpeng Zhao’s pardon, BNB DAT/ETF issuance and listing on mainstream exchangesBNB has previously had limited exposure in the U.S. market, but this situation is gradually changing. Mainstream exchanges including Robinhood and Coinbase have launched BNB DAT and ETF issuance processes and BNB listing plans, allowing U.S. investors to indirectly access BNB through legal currency. Regulatory clarity is expected to increase in major jurisdictions around the world, accelerating institutional adoption. Zhao Changpeng received a "complete and unconditional" pardon, which is expected to ease the restrictions on his "suitability" in previous US government cases. This provides an unprecedented opportunity for the United States and U.S. investors to embrace BNB Chain and its new growth opportunities. It also creates conditions for BNB Chain and BNB to accelerate the introduction of developers and re-promote enterprise-level integration in the U.S. payment, custody and Web3 infrastructure fields - these initiatives will serve this historically under-allocated area and create the next growth engine for BNB Chain. 3.4 Diversify BNB products: Provide BNB growth opportunities for a wider investor groupThe BNB-related product matrix includes regional BNB DAT, BNB ETF (compliant regions) and BNB income funds, which are transforming on-chain liquidity into compliant issuance channels. Each BNB related product has a clear positioning:
Through effective KYC/AML (customer identity verification/anti-money laundering) processes, independent management/auditing mechanisms and standardized information disclosure, these products aim to reduce operational friction and expand the coverage of institutions and overseas users. From BNB DAT, ETFs to income funds, diversified BNB financial products provide diverse investor groups with diverse choices across the liquidity-income spectrum. 4. One of the strongest structural performances in history4.1 BNB: cycle-proven performanceAfter multiple market cycles, BNB has continued to show structural outperformance compared to similar Layer-1 networks and benchmark digital assets. Its long-term value growth stems from the synergy of functional utility, programmatic supply control and ecological scale integration. Unlike competing products whose performance is highly dependent on the beta coefficient of the overall market, BNB exhibits structural decoupling characteristics. Even during bear markets (2018, 2022), BNB remained relatively strong and quickly reached all-time highs - demonstrating the resilience, liquidity compression effect and demand stickiness valued by fiscal allocation investors. The stability of BNB’s price—leading the narrative to rise in rotation and absorbing fluctuations more efficiently—makes it the optimal underlying asset for long-term structured products, especially for products that earn fees or potential returns. Core Insight: BNB’s compound interest performance proves that architectural design and currency structure can create continuous value through self-correction, making it a more stable and predictable asset base in the architectural system.  4.2 BNB as a strategic assetBNB not only targets native cryptocurrency users, but also designs a simple and easy-to-use experience for new users with no crypto experience. The introduction of BNB is expected to significantly increase risk-adjusted returns ； For example, in the simulation model, adding 2%-5% BNB allocation to the standard stock and bond commodity portfolio can increase the Sharpe ratio from 0.95 to 1.25. This demonstrates the effectiveness of BNB as an alternative asset allocation tool - both enhancing diversification and capturing Web3 participation opportunities and potential returns. The current market environment may provide asset managers with structural opportunities to incorporate BNB into alternative asset allocations. BNB has shown a rare ability to break away from the overall cryptocurrency trend, remaining strong even during BTC pullbacks and market-wide corrections. This structural independence is driven by BNB’s dual engines: on-chain economic utility (the article is reproduced from a reprint, please contact us to delete it if there is any infringement) |
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