Recently, Binance announced that it is launching its inaugural soul-bound token, the Binance Account Bound (BAB) token, on the BNB Smart Chain.
The new BAB cryptocurrency, according to sources, will be used by Binance users as identification documentation. This will only apply to customers who have successfully complied with KYC procedures, though.
$BAB Launch Date
The new Binance Account Bound token will be accessible for minting by users on the BNB Chain beginning on Thursday, September 8th at 9:00 (UTC).
Additionally, according to sources, these individuals will be able to create various projects and mint the tokens as identification credentials. Users will also be able to acquire different incentives.
The BAB tokens will act as identification credentials for Binance users who have successfully completed their KYC verification. The tokens cannot be exchanged between users as a result.
The BAB tokens will also be adopted by other BNB Chain projects as identification credentials for their communities. According to this, users that produce BAB tokens will have participatory access to developing the sponsored projects.
Binance users also have the option to cancel or revoke their Binance Account Bound tokens.
Furthermore, the user can mint one BAB token that is unique to a certain chain with just one validated Binance user identification.
More Information in The Future
The largest cryptocurrency exchange Binance claims that it will reveal more information on the BNB Chain in the future. However, the platform will take the user’s Binance Funding or Spot Wallet as payment for the usual gas expenses associated with creating BAB tokens.
Binance’s blog post states that the initial gas charge is fixed at 1 BUSD.
What Are Soul-Bound Tokens?
One of the most recent inventions to come out of the Web3 era is soul-bound tokens or BAB tokens.
A soul-bound token is a type of digital identification token that symbolizes the qualities, accomplishments, and aspects that make up an individual or an entity. SBTs are not transferable and are only issued by “Souls,” which stands for blockchain wallets or accounts.
This idea also alludes to a blockchain account that is owned, where immutable documents like jobs, school histories, and work histories are conveniently preserved.
Binance believes that the decentralized Web3 space will benefit from the adoption of the BAB tokenization and soul-bound tokens.
“As we begin to explore how credentials will function in Web3, whether it be in the form of a verifiable skillset or an earned title, further use cases for the BAB token will arise.” BNB chain wrote in a statement. “This sense of accountability paves the way for a more efficient decentralized community and space.”