The world’s largest crypto exchange is set to release Binance Account Bound (BAB) token, its first soulbound or non-transferable and non-financialized token that’s built on the firm’s native Build and Build (BNB) chain.
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BAB will be exclusively available on the Binance mobile app as an opt-in feature. Users whose identities have been confirmed by the platform’s know-your-customer (KYC) process can directly mint the token onto their digital Binance wallets. If necessary, they can also choose to make a new wallet to store the permanent token.
In its current iteration, BAB will be used as KYC credentials, meaning that it will indicate when users’ identities have been verified. It can also be used by third-party protocols to airdrop NFTs and avoid bots. Decentralized autonomous organizations can also tap BAB to enable quadratic voting.
But as the crypto landscape evolves, Binance is anticipating that more native types of soulbound tokens (SBTs) will be created, which could have applications in security. Examples include airdropping to addresses that contain BAB tokens or a bot-prevention NFT protocol that limits minting to wallets with BAB tokens.
SBT is a Web3 concept that was created at the beginning of 2022 and introduced by Ethereum founder Vitalik Buterin, alongside Eric Glen Weyl and Puja Ohlhaver.
Binance has been looking a number of innovative use cases for crypto, such as its recent launch of fan tokens for sports matches.
See also: Ex-Binance CFO has big plans for Coins.ph, Gojek’s ‘underloved,’ ‘orphaned’ business
Editing by Samreen Ahmad and Eileen C. Ang
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