#4
On 3076 watchlists

BNB Chain

BNB

About

BNB Chain is a decentralized blockchain network that enables developers to create and deploy decentralized applications (DApps) as part of the transition to Web3. Its goal is to provide creators, developers, and entrepreneurs with the opportunity to build MetaFi, a unified platform for various projects such as the Metaverse, DeFi, GameFi, SocialFi, Web3, and NFTs. The BNB Chain aims to establish the infrastructure needed to support a parallel virtual ecosystem.

$44,289,141,011

$7,713,449,523

96.87%

30d

+0%

N/A

Reward Options
Risk
Complexity
Reward
Adj. Reward
Minimum
Lock Up
Avg. Fee
Staking Ratio
Delegate BNB
Risk
medium
Complexity
easy
Reward
2.39%
Minimum
1
Lock Up
7 d
Staking Ratio
97.54%
Adj. Reward
8.44%
Avg. Fee
6.48%
Run A Validator Node
Risk
medium
Complexity
professional
Reward
2.56%
Minimum
10,000
Lock Up
7 d
Staking Ratio
2.46%
Adj. Reward
8.62%
Avg. Fee
-

Calculate how much you can earn by staking BNB Chain. Results vary based on the staking amount, term, and type selected.

USD
BNB

Advanced calculator

Revenue over time (USD / week)

Total Reward Rate

0%

or 0% annualized

Est. Monthly Earning

$0

0 BNB

Est. Yearly Earning

$0

0 BNB

FAQ's

  • How to stake BNB?
  • To earn a yield on your BNB, you can either lend them out to custodial providers or via a Defi lending protocol, run your own validator or delegate your tokens to validators of your choice.

    We recommend using a Ledger Hardware Wallet to keep full control over your funds. To delegate your tokens, you should ensure you have your BNB on your Ledger or Trust wallet and follow the steps below:

    Step 1: Download Trust Wallet and ensure that your BNB is stored in this wallet.

    Step 2: Open the Finance dashboard and select BNB, click on “More,” and then on “Stake.”

    Step 3: Enter the amount of BNB you want to stake, and choose a validator. If you’re not sure who to delegate to, consult our FAQ for guidance on selecting a validator.

    Step 4: Click “Send” to confirm the transaction and begin staking.

    Please see here for a more detailed step-by-step tutorial. 

  • Do I need to maintain my staking in any way?
  • Once you have delegated your BNB, there are things you need to consider going forward:

    • Firstly, delegating from one validator to another can be done without waiting for the unbonding period. You might consider redelegating if your current validator raises their commission rate or gets jailed for misbehaviour on-chain. Once redelegated, you have to wait for 7 days before you are able to redelegate again.  It is good practise to check in every now and then to make sure the validator is still performing well.
    • Secondly, rewards are not auto-compounded. To maximize the value of your tokens, you may want to claim and stake your rewards more frequently. However, keep in mind that each transaction will incur gas fees, hence, please optimise your strategy for that. By using our BNB staking calculator, you can calculate the optimal re-stake frequency for your amount of BNB.
  • How do I choose BNB validators?
  • It is essential for users to stake their PoS tokens with a dependable and highly performant validator, which is why we have rolled out our Verified Provider Program in June 2022. 

    When we verify providers, we look at their business through a microscope and analyse things such as their security; value-adds to the ecosystem and the team. You can learn more about the VPP Batch 1 and Batch 2. Providers that are part of the VPP have a blue checkmark next to their names on our website and can be viewed here.

    There are many metrics to consider when selecting a validator to delegate to:

    Commission Rates: The commission rate a validator charges is the % of your reward that the validator keeps for themselves. A high commission rate means your rewards will be lower whilst a low commission rate could mean that the validator is not profitable and could cause issues for them in the future. Keep in mind that validators can adjust their commission rates up or down over time. 

    Number of Users: A high number of delegators could indicate positive sentiment towards a validator. 

    Validators Self-Staked balance: A provider that has a high amount of staked tokens likely has more incentive to continue operating their services as they have more to lose than those with low self-staked balances. 

    Current Status: You can see whether the validator is currently active or not by checking the validator list shown on this page. Validators that are active have a green ‘Active’ label.

    Network Share: You typically don’t want to choose a validator with the highest voting power or a validator with a low network share. Delegating to the most popular validators increases centralisation risks within the network as those validators will have more say in governance and a larger share of the blocks. A validator with a low network share, might not be profitable and hence increases the risk of them discontinuing their services.

    Performance: Make sure you pick a validator with the highest possible uptime performance by viewing the validator information on the Validator Dashboard. Our recommendation is to only pick those with a >=99% performance and a long history of not getting slashed. 

    Value Add to the Ecosystem: Some providers offer extra services to their delegators, such as tax reporting tools, explorers, etc. This can be another great way to filter for validators that are thinking long-term. You can view the value-added services of staking providers by searching for their profile on our website and scroll down towards the bottom of the page.

  • How are the staking rewards generated?
  • The Staking Rewards on BNB are generated by:

    • Transaction Fees – Each transaction processed by the network comes with transaction fees. Transaction fees are collected by the network and distributed to each delegator proportional to their stake. The Staking APR will vary with network usage.

    Please note that the total annual rewards are divided by all active stakers; hence, as the amount of staked tokens goes up, the reward rate goes down. 

  • What are the risks to staking BNB?
  • Whilst we want to ensure staking is as safe and transparent as possible, there are still things to consider regarding whether a specific staking option is right for you.

    Slashing risk: Your BNB cannot be slashed. The only risk for delegators is the loss of potential rewards when their staked validator is jailed and not receiving rewards. Their staked BNB will not be impacted. 

    Unbonding risk: The unbonding period for BNB is 7 days. Crypto markets are highly volatile, and investors need to be aware that they cannot sell their tokens immediately once they have staked them. They first need to wait 7 days for the tokens to unbond before they become liquid. Please take note of this lockup before you decide to stake. Consider keeping funds liquid if you do not intend to hold BNB long-term. 

    Dropping out of the active set: On top of potentially losing out on rewards if your validator gets slashed, a validator could also drop out of the active set, meaning they no longer earn any rewards. Ensure you check back frequently to ensure your validator is active, not jailed and has not raised their commission fees unreasonably. 

    Please note that this is not an exhaustive list of all the risks related to staking.

  • What is BNB?
  • BNB is an exchange-based token that powers the BNB-Smart-Chain (BSC) network and is issued by the cryptocurrency exchange Binance. It is used to carry out the key functions of the platform as detailed below:

    Token Utilities 

    • Governance: Delegators can not individually vote on proposals, running a validator is the only way to have a vote in BNB governance. As such, delegating to a validator is tantamount to delegating your voting power to its governance participation and views.
    • Staking: Users can temporarily lock BNB up to contribute to the security of the BNB chain.
    • Gas token: BNB is required for transactions and value transfer from one wallet to another on the network. Each transaction processed by the network requires a small fee which gets returned to stakers.
    • Exchange Benefits: Get discounts on Binance Exchange if you pay in BNB (25% on spot and margin trading, 10% on futures trading). You also get access to exclusive new token sales on the Binance Launch Pad by holding BNB.
  • What consensus algorithm does BNB Chain use?
  • BNB Chain uses a variation of the Proof-of-Staked Authority (PoSA) consensus mechanism. At its core, this consensus algorithm called Parlia is built on a network of 21 validators and delegators, who vote for validators. In a PoSA system, the right to validate transactions and add them to the blockchain is determined by the amount of tokens a node holds and locks up as stake. This is similar to a Proof-of-Stake (PoS) system, but in a PoSA system, multiple validators are selected to produce blocks and validate transactions, rather than just one. This can make the system more efficient and secure, since multiple validators are working together to secure the blockchain.

  • What are the tokenomics of BNB?
  • The total supply of BNB is capped at 200 million. Binance conducts quarterly burns of BNB in order to reduce the supply and increase the value of the token. The amount of BNB burned each quarter is determined by the trading volume on the Binance exchange. This burn schedule will continue until a total of 100 million BNB (50% of the total supply) has been destroyed. The calculation behind BNB burns can be found here

    Initial Distribution Breakdown 

    0% of the total token distribution is reserved for staking rewards. The staking rewards are purely generated by transaction fees. The Initial token distribution of BNB is as follows:

    • 40% is allocated to founders
    • 10% is allocated to Investors
    • 50% is allocated to the Public sale investors

Dive Deeper