NFTs, DAOs & Web3

What is a soulbound token (SBT)?

A soulbound token (SBT) is a non-transferable token tied permanently to a single wallet, used to represent credentials, achievements, or affiliations rather than tradable value. Unlike a typical NFT, an SBT cannot be sold or moved, so it reliably proves something about the holder, such as a completed course, event attendance, or DAO membership. For example, a university might issue a degree as an SBT that lives in the graduate's wallet and cannot be passed to anyone else. The design supports reputation and identity systems where transferability would defeat the purpose.