Binance is known for experimenting and adding new elements to keep user engagement high and this time it has introduced a new Binance BAB token to expand its user base.
Alongside launching the new Binance BAB token, the new Binance listings also keep on growing. The exchange has also been engaging new clients by introducing new learn and earn games such as the Binance Bitcoin button game, Binance Wodl and Binance Quiz.
By launching the Binance BAB soulbound tokens, the exchange is levelling up to magnify its services and reach new audiences. Let's take a look at what the new Binance Soulbound tokens are all about.
Binance announces BA soulbound token for KYC
Officially called the Binance Account Bound token, the Binance BAB soulbound token is the latest addition to the Binance ecosystem.
The tokens will serve as KYC credentials for users and will be introduced as pilot projects for Binance users.
As per Binance's blog post, BAB tokens will be "displayed on user wallets to verify that they have completed KYC. "
The token will be non-transferable, and users will be able to mint BAB on the BNB chain once they've completed their KYC.
The blog post further adds how these tokens have been launched to create a sense of ease among customers. Binance also notes it demonstrates the value of Web3 credentials. It states:
This will initiate a sense of accountability, whereby the tokens represent something more than a monetary sum, they will underline the relevant Web3 credentials they represent.
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What is a BAB token?
Binance Account Bound tokens have been introduced as an identification tool to help authenticate verified profiles or accounts on Binance.
These SBT tokens will serve as "Binance identity" and can be used and verified by third-party protocols for diverse purposes.
The most significant use case is that these BAB tokens can help eradicate issues related to fake airdrops and bots. This should thereby help users to build dependability and reliability within the exchange's ecosystem.
BAB release date speculation
Binance did not include any information on the prospective release date for the BAB token. The announcement post simply noted Binance was set to issue these tokens, without giving any timeline or further timing details.
However, when discussing the benefits, it did state: "This is a key element to remember in Binance’s initial pilot of BAB tokens."
This suggests the BAB token will first launch as a pilot programme ahead of a larger release later.
What is a Soulbound token?
Soulbound tokens are defined as NFTs that cannot be transferred between wallets.
This incapability to trade soulbound tokens helps in identifying wallet activity at large.
This non-transferable element means they use-cases for soulbound tokens can go beyond the crypto industry and include the likes of medical details, education achievements, and personal information, all using blockchain.
Vitalik Buterin is among those to propose and advocate for soulbound tokens. He previously used World of Warcraft to propose these non-transferable NFTs.
BAB token price
Since Binance Account Bound tokens are non-transferable and non-financialised tokens, these tokens do not come with a price.
These tokens have strictly been introduced as an identification tool. However, the exchange agrees that they still bear considerable potential in near future including utilizing these tokens for DAO voting.
Users will be able to mint BAB tokens via accessing an opt-in feature which can be enabled by Binance users after completing their full KYC processes.