Soulbound Token

At NiftyKit, we believe in the soul of innovation. When Vitalik Buterin first coined the term “Soulbound Token,” we knew deep inside that the web3 landscape was bound for change.

What is Soulbound Token (SBT)?

In web3 jargon, Soulbound refers to an NFT that cannot be traded. It is typically more useful for applications that prioritize utility over speculation. Although SBTs are still a new idea, expanding the case for utility is crucial for increasing web3 adoption, and SBTs are instrumental in driving this adoption.

The term "Soulbound" originated from the game World of Warcraft. It refers to an item that is bound to a specific character and cannot be traded. In the game, rare items become immediately bound to the character, thereby increasing their strength without relying on the power of other items held by the character.

What are some use cases?

Proof of Attendance

At web3, building a solid community is a top priority, and events and gatherings play a crucial role in achieving this. To acknowledge attendance, we offer a unique form of SBT that can be created exclusively for event attendees. These digital collectibles do not hold any monetary value and cannot be traded on marketplaces. They serve as a fun and interactive way for attendees to collect and event organizers to track participation.

Decentralized Memberships

As the owner of SBTs, you can generate digital signatures indicating your ownership. This makes them ideal for providing evidence of membership. By utilizing SBTs, you avoid the risk of "de-platforming" from relying on an existing membership platform. If the platform shuts down, you could lose access to your membership. SBTs allow you to keep track of your members in a decentralized manner, ensuring that you can remain active indefinitely.

Loyalty Rewards

As a creator, it's important to recognize and reward loyal customers. One way to do this is by using SBTs as a checkpoint to easily identify and flag these customers based on the length of time they have been receiving the service. SBTs are useful for keeping track of and acknowledging our most dedicated fans.

What are common misconceptions?

SBTs are different than NFTs

In reality, they are identical. The sole distinction is that SBTs cannot be traded; they still operate under the same NFT Smart Contract.

SBTs are challenging to set up

Converting any collection into SBTs is made easy with NiftyKit's Diamond Smart Contract, whether it's an existing collection or a new one. It takes only a few clicks from an existing collection.

Once you go Soulbound, you can’t go back

With NiftyKit's Diamond Smart Contract, you can quickly turn on or off the Soulbound state for new or existing collections. There are no restrictions, but holders cannot trade their NFTs immediately once enabled.

NiftyKit’s Soulbound Token App

Use NiftyKit's Diamond Smart Contracts and install the Soulbound Token now! You can start for free. Learn more about our new features in our upcoming release here.