Binance continues to launch products that help users get back the benefits of joining their ecosystem. Let’s learn about BAB token, a new token launched by this popular exchange.
What is BAB token?
BAB token full name is Binance Account Bound (BAB) token, this is the first token of the “soulbound token” group to appear on BNB Chain. The BAB token serves as proof of the completion of the KYC (Know Your Customer) procedure by the user.
This token has no monetary value but is a ticket for users to participate in building projects on BNB Chain.
All users who complete KYC on Binance exchange can own this token. This token will then be tied to the wallet that the user uses to mint. Many projects on BNB Chain also use the BAB token to authenticate the identity of their community.
Features of BAB token
BAB token has the following basic features:
Cannot be sent to others.:This is the main reason why this token is called soulbound token.
Revokable: Users can revoke BAB tokens and can be minted again after 72 locks.
Unique: A Binance ID account can only mint 1 of this token. The user links the wallet to mint the token, which is then tied to the wallet and that Binance ID.
Also, there are a few caveats:
Users can choose Binance wallet or Trust wallet to mint.
The gas fee to mint is 1 BUSD. This fee will be deducted from the user’s Funding Wallet or Spot Wallet right on the Binance app.
BAB can be displayed on users’ on-chain wallet addresses.
BAB token holders can receive privileges from Binance in the future.
BAB token adoption
After the announcement of the launch on September 8, 2022, the BAB token has received a lot of attention from the community, the number of BAB mint users has continuously recorded an increase. However, this number has since decreased significantly, currently maintaining at 2,000 mint people/day.
The total number of BAB tokens minted as of press time is over 440,000, which is still too small compared to Binance’s estimated 2021 user base of over 21 million. In addition, the number of BAB minted significantly decreased, showing that users only paid attention to BAB at the beginning, but did not really care about this token.
Ngoài ra, số lượng người dùng thu hồi BAB trong thời gian gần đây tăng mạnh, nguyên nhân có thể đến từ nhu cầu đổi ví nắm giữ token này của người dùng.
More specifically, among wallets holding BAB tokens, about 60% are newly created wallets to mint BAB. However, as of 9/22, up to 41% of wallets holding BAB were created but then did not make any transactions → The number of users who minted tokens and did not use them is quite large.
In terms of attracting new wallets/users for each respective dapp, BAB token has attracted many of the newest wallets for dapps like Tiny World, SecondLive, Quest3, Galaxy, PearDAO, X WorldGame… with a new user rate of BAB token holders account for more than 50%.
Projects with a high percentage of new users are mostly NFT/Game projects. The reason is because these are dapps that actively integrate with BAB token, users who are BAB token holders can join the game/app with greater benefits and privileges than regular users.
Large DeFi applications like Pancakeswap or liquid staking protocols (pStake, Ankr, Stader) have a relatively low percentage of new users and users interacting with dapps as BAB holders. This shows that the BAB token is not a tool to attract users to these projects.
summary
BAB token is a new type of token applied to represent user identity on the Binance exchange. The BAB token will bring new benefits to the group of users who own the token. This token is also being integrated by projects on BNB Chain, and it mainly affects the Game, NFT segment.