Bancor Network Tokens (BNT) are the native tokens of Bancor Network.
The Bancor Network is a series of permissionless liquidity pools designed to facilitate more seamless trading and accessible liquidity in the DeFi space.
|Circulating supply||~66,000,000 BNT|
|Maximum supply||Varies with demand|
|Purpose||Multi-purpose utility token|
How does Bancor Network work?
At its heart, Bancor Network is a series of liquidity pools. It is intended to serve as a decentralised and permissionless alternative to the market making schemes which provide liquidity in centralised systems.
Put simply, its purpose is to ensure that people can make crypto-to-crypto trades faster and at lower cost. It builds these liquidity pools by rewarding people who make deposits into the Bancor Network pools.
The BNT token serves multiple purposes in this system: it’s an incentive mechanism, an admission token, an intermediary currency to help grease the wheels and a governance token.
What does BNT do?
BNT serves multiple functions:
- Admission token. People are required to deposit BNT proportional to the amount of their other deposits.
- Incentive. Rewards, in the form of a cut of the Bancor Network trading fees, can be paid to liquidity providers.
- Intermediary currency. As a native, plentiful currency in the Bancor Network, BNT is available as an intermediary currency to enable more seamless exchanges.
- Governance. BNT token holders can exercise governance rights over the network, for example, by voting on whether network fees are distributed to token holders.
How to buy BNT
Here’s a step-by-step guide on one way of buying BNT. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that’s right for you.
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