SEC Filing Document

Company: Grayscale BNB ETF
Ticker: GBNB
CIK: 2106762
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-04-07
Accession Number: 0001193125-26-145494
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2106762/000119312526145494/bnb_s-1_amendment_1.htm

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cross-chain bridge (the “BSC Token Hub”) connected the Beacon Chain to the BNB Smart Chain and thus allowed BNB and other digital assets to move between the blockchains. In October 2022, the BSC Token Hub suffered an exploit, resulting in the loss of approximately two million BNB. In response to the exploit, Binance paused the system for several hours and introduced a software update that contained a hardcoded function that blacklisted the hacker’s wallet address, preventing it from signing on-chain transactions and liquidating the stolen funds. In 2024, the BNB Beacon Chain’s functionality and digital assets (including BNB) were migrated to the BNB Smart Chain (the “BNB Chain Fusion”), and the BNB Beacon Chain was retired. The stated goals of the BNB Chain Fusion were to streamline the network, improve efficiency, reduce security risks, and align the BNB Chain ecosystem’s architecture with current technological demands and future growth. BNB Supply

BNB is the native digital asset of the BNB Chain ecosystem. It was initially launched as an ERC‑20 token on the Ethereum Network with a total supply of 200 million. No additional BNB may be minted. BNB has since migrated to the BNB Chain ecosystem blockchains, and now exists primarily on the BNB Smart Chain, with residual ERC‑20 supply on the Ethereum Network used mainly for bridging. After its creation, Binance issued the 200 million BNB as follows: 10% (20 million BNB) to angel investors in Binance, 40% (80 million BNB) to the founding employees of Binance Exchange subject to a four-year vesting, and 50% (100 million BNB) in an Initial Coin Offering in exchange for Ethereum or the equivalent Ethereum price in Bitcoin in three consecutive tranches in mid-2017.

The total supply of BNB is designed to decrease through token burn mechanisms that permanently remove BNB from circulation. These mechanisms include:

Gas Fees Burn. Ten percent of all the portion of transaction fees earmarked for validators incurred on BNB Smart Chain are burned automatically at each block. This mechanism was introduced through BEP-95, and the percentage can be changed through the on-chain governance process.

Pioneer Burn. The Pioneer Burn Program is designed to address the accidental loss of BNB by users. If users can prove they lost BNB on the BNB Smart Chain and their case qualifies, Binance will reimburse those users. An equivalent amount of BNB to that reimbursement is then burned as part of the quarterly Auto-Burns.

Auto-Burn. This mechanism burns varying amounts of BNB quarterly, depending on BNB’s price and the number of blocks generated on BNB Smart Chain during the quarter. It appears as though the parameters used in this formula are subject to change without going through on-chain governance process. Prior to the implementation of the current Auto-Burn mechanism, Binance used 20% of its quarterly profits to buy BNB to burn it, such that BNB burns were based on BNB trading volumes on Binance Exchange.

As a result, while the circulating supply of BNB may fluctuate, the total supply is deflationary and is intended to decline over time toward a target of 100 million BNB. While this mechanism aims to reduce overall supply and support long-term scarcity, it does not guarantee a fixed or minimum future supply, and actual circulating amounts may vary due to market activity and on-chain dynamics.

Because BNB’s supply is deflationary, there is no inflationary issuance rate affecting staking or yield dynamics. However, the rate of token burns influences long-term scarcity and can impact market price and perceived value.

Faster burn rates effectively reduce supply more quickly, while slower rates extend the time required to reach the program’s ultimate target of 100 million BNB total supply.

Because the Trust does not participate in any yield- or burn-related mechanisms directly, its returns will reflect changes in the market price of BNB. If the burn mechanism supports price appreciation by constraining supply, the Trust could benefit from higher BNB valuations. Conversely, if transaction volumes or network activity decline, leading to slower burns, BNB’s deflationary effects—and thus potential price support—may diminish over time.

BNB Usage

BNB can be used for several purposes, each as described below.

Pay Gas and Storage Fees. To interact with a dApp or transact on each of the BNB Chain ecosystem blockchains, gas (and, where applicable, storage fees) must be paid in BNB.

Stake on BNB Chain Ecosystem Blockchains. Validators stake BNB to earn BNB rewards in exchange for processing and validating transactions.

Participate in Governance. To put a governance proposal to an on-chain vote, proposers must deposit 200 BNB into a smart contract. Further, only BNB holders can vote on governance proposals.

Pay Trading Fees on Binance Exchange. Binance Exchange allows users to pay trading fees in BNB. It also offers users a 25% discount on both spot and margin trading fees for doing so. Fees are calculated based on Binance Exchange’s tiered VIP fee system. VIP levels are based on spot and futures trading volume, as well as the amount of BNB users hold in their account. Therefore, the higher a user’s trading volume and BNB holdings, the lower the fees they will pay. Users of decentralized exchanges deployed on the BNB Smart Chain, such as PancakeSwap, also allow users to pay trading fees in BNB.

Pay for Goods and Services with Binance Pay and Binance Card. Binance Pay and Binance Card allow users to pay for goods and services using digital assets, including BNB. The products also enable merchants to accept digital asset payments, including in BNB, either directly or through a fiat currency settlement.

Access Rewards on Binance Earn and Launchpool. Users can lock up digital assets, including BNB, to earn passive rewards on Binance Earn and Launchpool. For example, on Binance Earn, users can lock up their BNB for a flexible or locked amount of time for a 0.15-0.32% annual percentage yield. Similarly, on Launchpool, users can lock up their BNB for new digital assets, such as ET, ALLO, SAPIEN, and MMT.

Post Collateral for a Digital Asset Loan. Borrowers seeking a loan in digital assets can use digital assets, including BNB, as collateral to secure the loan on Binance Loan.

Development of the BNB Chain Ecosystem and BNB

Binance has historically and is currently supporting the maintenance, development, and promotion of the BNB Chain ecosystem and BNB. Binance is able to access and alter the BNB Chain ecosystem blockchains’ source code and, as a result, they are responsible for official releases of updates and other changes to the BNB Chain ecosystem’s source code. Because of its consistent support, Binance’s activities have historically affected the market price of BNB.

The release of updates to the BNB Chain ecosystem blockchains’ source code does not guarantee that the updates will be automatically adopted. Validators must accept any changes made to the BNB source code by downloading the proposed modification of the source code. A modification of the source code is only effective with respect to the BNB validators that download it. If a modification is accepted only by a percentage of validators, a division in the blockchain will occur such that one network will run the pre-modification source code and the other network will run the modified source code. Such a division is known as a “fork.” See “Risk Factors—Risk Factors Related to Digital Assets—A temporary or permanent fork could adversely affect an investment in the Shares”. Consequently, as a practical matter, a modification to the source code becomes part of the BNB Chain ecosystem

blockchain only if it is accepted by participants collectively having a majority of the processing power on the blockchain.

The BNB Chain ecosystem also has an on-chain governance mechanism whereby BNB holders are able to propose and vote on governance proposals and influence the network’s evolution. BNB holders can “self-delegate” to participate in voting directly or delegate their voting power to a validator or other community member to participate in voting indirectly. However, there can be no assurance that validators or other community members will act consistently with the preferences of delegators. Voting power is proportional to the amount of BNB a holder self-delegates or delegates to a validator or community member, meaning governance outcomes may be influenced disproportionately by large stakeholders. Governance decisions can cover network parameters (such as cross‑chain transfer fees), protocol upgrades, policy changes, and treasury management. Accepted proposals are executed through protocol updates coordinated by validators and core developers, and no single entity can unilaterally amend network rules.