Binance to Release Soulbound Tokens on BNB Chain

Soulbound Tokens go beyond monetary value and bring something more valuable to the blockchain — identity.

By
Mark Jurgens
on
August 2, 2022
Category:
NFT

Proof of Humanity

Binance announced the first-ever Soulbound Token (SBT) built on BNB Chain.

The so-called Binance Account Bound (BAB) tokens certify users’ KYC status and will be accessible to third-party dApps. These tokens can only be minted upon account verification and are non-transferable.

“This means a BAB token will function as a Binance identity that can be used and verified by third-party protocols for a variety of purposes. This will help eradicate familiar issues relating to airdrops and even bots, helping establish a safer and more accountable space,” said the BNB Chain team.
Source

Ethereum creator Vitalik Buterin introduced the “Soulbound” concept in January. One of his main points was the importance of making governance rights soulbound and non-transferable to benefit decentralization.

“What if we try to make a CityDAO where more voting power goes to the people who actually live in the city, or at least is reliably democratic and avoids undue influence by whales hoarding a large number of citizen NFTs?” he asked. 

Non-transferable tokens seem to be a critical development for future organizations, as they can be used to represent identities, credentials, and affiliations on-chain. 

In this case, protocols across the space can use BAB’s identity proof to assign a wallet to an actual human. For example, they can be helpful if DAO members need to vote on a proposal or receive a Universal Basic Income in a fair and democratic manner.

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Mark Jurgens

Mark is an industrial engineer, born in Colombia and raised in Argentina, a place that is in deep need for the freedom crypto can offer the world. He is searching for projects that want to make a positive impact. Analytical and creative. Loves to travel around. Biggest holdings are Defichain, Ethereum and Solana.

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