Binance Launches 'Soulbound Tokens' On BNB Chain

Zinger Key Points
  • Binance KYC Soulbound Tokens go live
  • Ethereum founder Vitalik Buterin first described the concept of soulbound assets

Cryptocurrency exchange Binance on Thursday announced the launch of a Binance Account Bound (BAB) token, a soul-bound token used as proof of identity for Binance users who have completed KYC verification.

According to the exchange, users will be able to mint BAB tokens on BNB Chain as identity credentials and participate in building multiple projects and earn rewards.

Concept Of Soulbound Assets First Described By Buterin

Ethereum ETH/USD founder Vitalik Buterin initially introduced the idea of "soulbound" assets on the blockchain in a blog post from January 2022.

In his blog post, he described how the well-known fantasy game World of Warcraft has powerful "soulbound goods" that, once acquired, cannot be traded or sold to another player.

Before outlining some of its drawbacks, he stated that NFTs in their current form share many of the same features as rare and epic goods in a massively multiplayer online game.

Buterin said there is a sizable and untapped design area for what non-transferable NFTs may become, even while transferable NFTs have their place and can be quite important on their own for assisting artists and charities.

According to Binance, for users that have successfully completed KYC verification, Binance Account Bound (BAB) tokens will serve as identification credentials.

Binance BNB/USD will initially release the tokens on the BNB Chain.

The BAB tokens will be made available to communities by a few BNB Chain projects as identification credentials.

After creating a BAB token, a verified Binance user can take part in developing the chain's supporting projects and earn incentives. BNB Chain will provide further information at a later time.

Characteristics Of BAB Tokens

BAB tokens cannot be exchanged for those of other users.

Also, the BAB tokens can be revoked by users.

Additionally, only one confirmed Binance user ID is permitted to mint one BAB coin on a single chain.

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Posted In: CryptocurrencyMarketsBinanceBinance CoinEthereumVitalik Buterin
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