Personally I dont like to do KYC for any kind of bounty project. But I like to do KYC for exchange platform like binance,bittrex because it has huge advantage. you can withdraw huge amount of btc/crypto...
I'd say it depends on how much you need to withdraw on a daily basis. Since you mentioned Binance, they have a a 24-hour withdrawal limit of 2 BTC. For most users this is enough. Do you honestly need to withdraw more than 2 BTC per day that would justify going thorough KYC?
But I've passed KYC on Binance just to be sure to have some instrument that my account is mine. Imagine some steal access to your account (probably got access to your mail, but keeps silent about it). How can you prove that this is your without giving any kind of person identification to exchange.