Plain English
A soulbound token is an NFT that cannot be transferred to another wallet. It represents an attribute, credential, or achievement bound to a specific person. Diplomas, KYC verifications, attendance records, and reputation badges are typical use cases. Coined by Vitalik Buterin in 2022.
How it actually works
SBT contracts override the transfer function so any attempt to move the token reverts. The token can be revoked (burned) by the issuer or by the holder. Some implementations allow rebinding to a new wallet via recovery procedures — important since users do lose access to wallets.
What it means for you
SBTs are the on-chain analog of credentials and certifications. For protocols offering accredited-only or KYC-only access, SBTs solve “prove me once, verify everywhere.” For HNW principals, SBT-based identity is increasingly how DeFi-native KYC, treasury access controls, and DAO governance gates will work.
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Educational content only. Not investment, tax, or legal advice.