As per the latest reports, Binance is launching the Binance Account Bound (BAB), a non-transferable token to be used as proof of identity for Binance users who completed KYC verification by 09:00 on September 8th, 2022. Users will be able to mint BAB tokens on the BNB Chain for credentials and participate in project construction and earn rewards.
What is Soulbound Token?
The concept of a soulbound token was first introduced in May 2022 by economist & social technologist E. Glen Weyl, attorney Puja Ohlhaver, and Ethereum co-founder Vitalik Buterin. However, for fans of the famous World of Warcraft game, this phrase is not new. In this game, players who complete missions will be rewarded with items called “soulbound”, which cannot be traded or exchanged between players. That is the origin of the soulbound token idea.
In short, the soulbound token is a non-transferable, publicly verifiable token. This token acts as a kind of online profile for a Web3 user, which can represent that individual’s membership, achievements, and credentials. This token is like the NFT token, each token is unique and the relevant information about that NFT will always be kept on the blockchain. But unlike NFT, Soulbound tokens will not be able to be sent back and forth, bought and sold, but tied to the wallet containing it, called “Soul”.
About Binance Account Bound (BAB) by Binance
Binance Account Bound (BAB) is a project dedicated to providing credentials for Binance users who have completed KYC verification. The project will be released on BNB Chain by Binance. Some projects on BNB Chain will use BAB tokens as credentials for their communities. Once verified Binance users generate BAB tokens, users will be able to participate in building supporting projects on the chain and receive rewards.
Features of BAB tokens:
- Non-transferable: Users cannot transfer BAB tokens to other users.
- Revocable: Users can revoke their BAB tokens.
- Unique: One verified Binance user ID allows the user to mint one BAB token only on a certain chain.
Binance also highlights some of the following notes:
- All Binance users who have completed KYC verification will be able to mint their unique BAB tokens.
- Gas fee applies whilst minting BAB tokens, which will be deducted from the user’s Funding or Spot Wallet on Binance. The initial gas fee is fixed at 1 BUSD.
- Users may revoke their minted BAB tokens, after which there will be a 72-hour lock period. Users may mint new BAB tokens after the lock period.
- BAB will be displayed on users’ on-chain wallet addresses.
Changpeng “CZ” Zhao and his Binance platform hit another big blow in terms of communication. They again show their ambition to be at the forefront of the industry and bring some decentralized products into their ecosystem. The Soulbound Token also has a real interest in online authentication.
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