Binance has released the Binance Account Bound (BAB) token, which is a soulbound token that stores identity credentials.
Each Binance user who has completed KYC can create one BAB token.
Holders of BAB tokens will be able to use select BNB Chain projects and gain rewards.
Binance Account Bound (BAB) tokens can only be created by users who have completed KYC verification.
Binance, the largest cryptocurrency exchange by trade volume, announced the debut of a soul-bound token dubbed Binance Account Bound on Thursday (BAB). BAB is a digital asset that allows Binance users to transfer their identity credentials between projects on the BNB Chain.
In yesterday’s announcement post, the Binance team explained BAB as follows:
“BINANCE ACCOUNT BOUND (BAB) TOKENS ARE IDENTITY CREDENTIALS FOR BINANCE USERS WHO HAD KYC VERIFICATION COMPLETED. BINANCE WILL BE THE FIRST TO MAKE IT AVAILABLE ON THE BNB CHAIN. A COUPLE OF BNB CHAIN PROJECTS WILL USE BAB TOKENS AS IDENTITY CREDENTIALS IN THEIR COMMUNITIES.”
In January 2022, Ethereum co-founder Vitalik Buterin proposed soul-bound tokens as a way to construct one’s Web3 identity. A user might theoretically hold numerous soulbound tokens, each recording different parts of personal information such as educational, financial, and other essential personal data.
BAB is non-transferable, and each user can only create one soulbound token. Furthermore, BAB can be withdrawn at any time by the user.
Binance stated that BAB holders would be able to participate in the development of supported BNB Chain projects and receive rewards as a result. BNB Chain will disclose additional details regarding supported projects and awards “at a later date,” according to the exchange.