Dynamite was an Uncommon, Rare and Epic explosive weapon in Battle Royale. Once thrown, Dynamite will start a 5-second fuse that can’t be canceled and can damage structures and opponents within 1600 units in diameter with the explosion in the shape of a flat cylinder. Dynamite can be found in stacks of 3 from floor loot, chests, Vending Machines, Supply Llamas, and Supply Drops. Unlike Grenades, a bundle of dynamite can be chucked back at the opponent who thrown it at you, meaning that if you were fast enough, you technically could eliminate an opponent with their own explosives.
The Dynamite has been added to the Vault on Patch 9.30 making it exclusively available in Creative. It was vaulted to reduce the amount of explosive items in the game.
On one of the teasers for Chapter 2 Season 2, a gold colored Dynamite was in the center of the picture, which most likely means it will be unvaulted. (It was actually unvaulted, but only in the Spy Games LTM. It still stays vaulted in normal game modes.)