The new Binance Account Bound tokens are the first-ever soul-bound tokens on the BNB Chain for users with verified accounts.
Binance is launching its inaugural soul-bound token, the Binance Account Bound (BAB) token, on the BNB Smart Chain. According to reports, the new BAB token will be used as proof of identity for Binance users. However, this will only be for users who have successfully satisfied KYC requirements. Scheduled to launch on Thursday, September 8th at 09:00 (UTC), the new Binance Account Bound token will be available for minting by users on the BNB Chain. In addition, reports also state that these users will be able to mint the tokens as identity credentials and participate in building multiple projects. In addition, users will be able to earn various rewards.
Details on Binance Account Bound Tokens
As earlier stated, the BAB tokens will serve as identity credentials for Binance users with completed KYC verifications. As a result, the tokens are non-transferable between users. Furthermore, many projects on the BNB Chain will also adopt the BAB tokens as identity credentials to their communities. This implies that when a user creates a BAB token, the user will receive participatory access to building the supported projects.
Binance users can also revoke or cancel their Binance Account Bound tokens if they choose to. Furthermore, a single verified Binance user identification allows the user to mint one BAB token exclusive to a particular chain. According to a Binance blog post, the prominent crypto exchange will announce more details surrounding the BNB Chain at a later time. However, the platform will deduct standard gas fees from minting BAB tokens from the user’s Binance Funding or Spot Wallet. According to information on the blog post, the initial gas fee has a fixed price of 1 BUSD.
BAB tokens are soul-bound tokens, one of the latest innovations to emerge from the Web3 era. A soul-bound token serves as a resume reflecting affiliations, credentials, and memberships of Web3 users. This concept also references an owned blockchain account where immutable records like educational and employment history and work experiences are seamlessly stored.
Binance believes that adopting the BAB tokenization and soul-bound tokens will enhance the decentralized Web3 space. According to a BNB Chain statement:
“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. This sense of accountability paves the way for a more efficient decentralized community and space.”
Binance Projected ZK Rollup Technology for BNB Chain
In other recent news, Binance announced plans to upgrade its BNB Chain to zero-knowledge (ZK) rollup technology next year. According to Binance, the upgrade in blockchain operability will enhance its performance. Expected enhancements include speeding up transaction times, as well as cutting down fees on the smart contract-enabling native network.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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