Binances He Yi: A Comprehensive Breakdown of BNB, its Strategic Deployment, and Future Development

Binances He Yi: A Comprehensive Breakdown of BNB, its Strategic Deployment, and Future Development Born in the bear market of 2017, BNB plays a crucial role within Binance's ecosystem. Serving as the platform's universal "gas," BNB transitioned from its initial burn mechanism to trading fee deductions, real-world applications, and future plans for stablecoin integration and the "Rising Star Program

Binances He Yi: A Comprehensive Breakdown of BNB, its Strategic Deployment, and Future Development

Born in the bear market of 2017, BNB plays a crucial role within Binance's ecosystem. Serving as the platform's universal "gas," BNB transitioned from its initial burn mechanism to trading fee deductions, real-world applications, and future plans for stablecoin integration and the "Rising Star Program." This article dives deep into BNB's strategic roadmap since 2017, exploring its multifaceted development. By examining an interview with Binance co-founder and CMO He Yi, we reveal the allure of BNB.

BNB: The Core "Gas" of Binance's Ecosystem

He Yi unequivocally states that BNB's position and value within Binance have never wavered; it remains the platform's universal "gas." Whether for partners, investors, or Binance subsidiaries, BNB is the core "transaction fee" or "target" asset.

BNB's debut in 2017, through its Launchpad, offered a fundraising platform for projects. During the ICO boom, BNB captivated users with its unique value proposition. While the Launchpad projects from that era have since been fully withdrawn from China, BNB's value has not diminished. Binance even absorbed any price discrepancies from BNB's drop in 2017, further emphasizing their commitment to its worth.

Key Milestones in BNB's Journey

He Yi divides BNB's evolution into three phases:

• Growth in Market Share and User Base: Binance rapidly became a leader in the global spot market, achieving significant growth in trading volume and user count, directly boosting BNB's value.

• Aggressive Global Compliance Push: Binance dedicated the past year to building a compliant infrastructure, enabling fiat on-ramps in over 170 countries, enhancing BNB's liquidity and utility.

• Stable Operation and Real-World Applications of Binance Chain: Binance Chain already supports numerous projects and is positively impacting the broader industry. Binance plans to further strengthen its stablecoin dimension and "Rising Star Program" for comprehensive support of BNB and the entire Binance ecosystem.

The IEO Model: From Fundraising to Promotion

Binance continuously innovates, exemplified by the launch of IEOs (Initial Exchange Offerings), which reinvigorated a sluggish crypto market and sparked a platform token rally. However, IEOs have transitioned from fundraising methods to promotion tools, resulting in market fatigue.

He Yi believes Launchpad's essence lies in connecting promising projects with seed users and providing a fair price discovery mechanism. Binance meticulously vets projects, assessing their profit models, team backgrounds, and other factors to ensure quality and value.

Diverse Applications of BNB: Trading, Token Crowdfunding, Blockchain Applications, Third-Party Payments

BNB enjoys a diverse range of applications:

• Trading Fee Deductions on the Binance Exchange: Binance believed from the start that BNB would become a mainstream asset, encouraging its use in trading. Today, Binance remains the platform with the highest global traffic, user base, and BNB trading volume, showcasing its primary use case.

• Token Crowdfunding: BNB has been used for project token fundraising since 2017, and its adoption for crowdfunding by independent projects has grown over time, reflecting its global recognition.

• Binance Chain Applications: Issuing tokens on Binance Chain or listing on Binance DEX requires BNB.

• Third-Party Payments: An increasing number of merchants, including cafes, phone manufacturers, and hotels, accept BNB as a payment method, demonstrating its real-world utility.

The Burn Mechanism: Delayed Gratification for the Team

Binance's revised burn plan in July 2019 sparked controversy. He Yi explained that this alteration aimed to ensure Binance's long-term sustainability and a more enduring return for the team. While the decision drew criticism, its long-term impact is expected to bolster the team's structural stability and maintain a "hunger" for success.

Binance Chain's Latest Roadmap: DEX, Atomic Swaps, Developer Community

Binance Chain is primarily focused on developing and building Binance DEX, while continuously seeking technological breakthroughs to better support Binance's growth.

• BinanceX Developer Community: To address user feedback on smart contracts, Binance Chain launched BinanceX, a developer community, to further enhance its ecosystem.

• Atomic Swaps: To address the conversion of tokens on Binance Chain to ERC20 or other tokens, Binance Chain introduced atomic swaps, facilitating seamless cross-platform token circulation.

• Competition with Ethereum: As more promising projects choose Binance Chain for issuance, it will compete with Ethereum. The blockchain that supports more projects and enjoys broader consensus will ultimately define its future trajectory.

Acquisition of JEX: Empowering BNB and Fostering Derivatives Growth

In September 2019, Binance acquired JEX, a digital asset derivatives trading platform, integrating it into its ecosystem to offer users futures contracts, options, and other derivatives.

• Investment and Acquisition Strategy: This acquisition aligns with traditional market practices where investment and mergers are drivers of company growth.

• Team Strengths: JEX possesses a robust technical team with extensive experience, injecting new dynamism into Binance's derivatives business.

• Competition and Collaboration: Binance already operates Binance Futures, developed by its internal team. JEX's inclusion introduces competition within Binance's contract business while also fostering collaboration to enhance market competitiveness.

• BNB Rewards: JEX allocates 30% of its profits directly to BNB holders, highlighting Binance's commitment to its users.

Compliance: A Core Competitive Advantage in the Future

Binance has consistently prioritized compliance, achieving notable milestones:

• BUSD: The launch of Binance USD (BUSD), approved by the New York Department of Financial Services (NYDFS), became one of the most compliant stablecoins globally.

• Binance.US: Binance.US, a Binance exchange for the US market, is now operational, supporting seven crypto assets and holding licenses in multiple states.

• Compliance Competitive Edge: Binance believes that compliant trading platforms will dominate the market in the US and worldwide, making compliance a critical competitive advantage.

Binance's Future Strategic Roadmap: Products, Blockchain, Rising Star Program, and Top-Tier Entrepreneurial Teams

He Yi outlines Binance's future strategy across four dimensions:

• Product Deployment: Trading remains core, encompassing spot trading, fiat trading, derivatives trading, Binance Earn, and OTC services.

• Blockchain and DEX: Continued investment in blockchain and DEX development, even if their profitability remains limited in the short term.

• Rising Star Program: Developing stablecoins and exploring new possibilities, establishing a connection with BNB.

• High-Quality Entrepreneurial Teams: Actively seeking out exceptional blockchain teams to integrate into the Binance ecosystem.

Conclusion

Since 2017, BNB's role within the Binance ecosystem has expanded significantly, and its value has consistently grown. From trading and token crowdfunding to blockchain applications and third-party payments, BNB's use cases are continuously expanding. Future developments in stablecoin integration and the "Rising Star Program" will further enhance its role. Binance will continue to invest in products, blockchain, the Rising Star Program, and top-tier entrepreneurial teams, aiming to create a more robust ecosystem and deliver exceptional services to users.