The world’s largest crypto exchange – Binance – has announced that it is all set to issue Binance Account Bound (BAB), the first SoulBound Token (SBT) built on the BNB smart chain. BAB will initially be offered as a pilot project and will be accessible only through the Binance mobile app.
This will be an opt-in feature that will enable only those Binance users to enter their BAB directly into their wallet while using the platform in compliance with Know Your Customer (KYC).
BAB has been introduced to essentially act as an online identity for Binance. It can also be leveraged by third party protocols to verify BAB tokens for myriad activities such as avoiding bots, airdropping NFTs and DAOs that use it for quadratic voting.
representation beyond monetary amounts
According to the official blog post, the BAB token is the first Soulbound token issued on the BNB smart chain that focuses on addressing identity issues in a decentralized society. It is a non-transferrable and non-financial token. The announcement states that “transferability” may not be in the best interest of decentralization. This can be problematic with respect to the distribution of governing power.
Therefore, BAB is different from traditional assets such as bitcoin and ethereum, which represent momentary sums.
“As we begin to explore how credentialing will work in Web3, whether as a verifiable skill or an earned title, further use cases for BAB tokens will emerge. This sense of accountability will become more efficient. It paves the way for decentralized community and space.”
Binance expects additional use cases for BAB to emerge in the future as the web3 landscape develops.
kindred
The concept of SBT was first introduced by Ethereum founder Vitalik Buterin. Glenn Weil and Pooja Ohlawer. Earlier this year, Buterin explained the shortcomings of NFTs’ transferability and commercial viability features.
SoulBound is a new type of token standard that could potentially form an essential building block for a decentralized society or DSoC. In the paper, Buterin details several ways to use SBTs, from university degrees to education certificates and web3 credit scores.
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