Soulbound Token (SBT) is a new concept proposed by Vitalik Buterin recently(Soul Bound idea and the recent paper about decentralized society). It will be a keystone for Web3 to go to the next level, "Decentralized Society" (DeSoc).
SBTs are most like NFTs we see today, but they have two key different properties.
- Non-transferable - When someone gets an SBT, He/She cannot transfer this SBT to another address.
- Revocable - SBTs can be revoked by issuers.
Suppose Binance issues Binance Account Bound(BAB) tokens which are credentials of Binance KYC users. So here are the potential scenarios to use these tokens:
- A new protocol only airdrops to addresses with BAB tokens since business cooperation.
- A NFT only allows minting from addresses with BAB tokens to avoid bots.
- A DAO only allows voting from addresses with BAB tokens, and each such address will have a cap of voting power to ensure governance fairness.
- A DAO uses Quadratic Voting, and only allows addresses with BAB tokens.
SBTs are still in the stage of concept. We have two purposes for this pilot project.
- Accumulate the influence in the cutting-edge technology field of the chain world.
- Introduce some new elements to promote the ecological prosperity of BSC.
We will give a practice about SBT by issuing BAB tokens. Users can mint, revoke and check BAB tokens on the Binance platform.
BAB Token is a non-fungible token issued by Binance characterized as a soulbound token. Getting a BAB Token is optional for Binance users and Binance's role is limited to issuing (upon request) the BAB Token for users who have completed identity verification procedures for their Binance account, which may vary depending on the user's country of residence. Third-party projects such as decentralized protocols, decentralized autonomous organizations, or decentralized applications have sole authority and discretion to decide whether or not to integrate BAB Tokens into their ecosystem, the purposes for which they will use it and whether BAB Tokens are suitable for their product or ecosystem, without any involvement of Binance. Binance is not making any representation to third-party projects about the holders of the BAB Tokens. Use of BAB Tokens by third-party projects in any way should not be construed as a recommendation, vetting, or endorsement of such third-party projects by Binance, BNB Chain, or any other affiliated entity.