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What Is Soulbound (Soulbound Token)?

A Soulbound Token (SBT) is an on-chain credential that is permanently linked to a specific wallet address and cannot be transferred. This type of token is designed to act as a blockchain-native proof of identity, qualification, or reputation—essentially, it recognizes only the designated address. Typically, a trusted issuer mints a non-transferable token or badge directly to your wallet address. These tokens cannot be transferred or traded by others.

You can think of a Soulbound Token as an “on-chain ID card or certificate,” which signals to applications that this address has passed a certain verification or holds a particular qualification.

Why Should You Care About Soulbound Tokens?

Soulbound Tokens make identity and reputation verifiable on-chain.

In many Web3 scenarios, distinguishing between genuine users and bots or sybil accounts is crucial. Soulbound Tokens add verifiable credentials to wallet addresses, increasing the cost for malicious actors and enabling more precise airdrops, access control, governance, and risk management.

For regular users, Soulbound Tokens offer fairer participation opportunities and more suitable rewards. For example, after passing KYC or earning proof of contribution, users might receive higher-weighted airdrops or access to loans with lower collateral requirements.

However, there are risks: potential privacy exposure, irreversible information, and reputation damage if the address is compromised. Issuers need to implement mechanisms for revocation, concealment, or rebinding, and users should be advised to manage their wallets securely.

How Do Soulbound Tokens Work?

Soulbound Tokens are minted and transfer-restricted by issuers.

The typical process involves a trusted issuer (such as an exchange, educational institution, or DAO) minting a “non-transferable” credential to your address via a smart contract. The contract disables transfer functions, allowing only minting and querying; some also support revocation or updating.

Verification generally consists of checking if an address holds the token or reading simple data fields embedded in the token. To maintain simplicity and low cost, most credentials express only binary “has/does not have” status or minimal information.

Common approaches on Ethereum include simplified standards (like read-only non-transferable NFTs) or attestation tools (such as Ethereum Attestation Service, which issues verifiable statements). The core principle is that an address obtains verifiable eligibility.

If you lose access to your address, some solutions allow “rebinding” credentials—either through reissuance after verification by the issuer or migrating the qualification using social recovery. Whether tokens can be migrated or revoked depends on specific contract and policy implementations.

Common Use Cases for Soulbound Tokens in Crypto

Most common in KYC, airdrops, and access control scenarios.

In exchange settings, after passing compliance KYC, users are issued a non-transferable credential to their address for whitelist access or on-chain identity verification. For example, Binance’s BAB (Binance Account Bound) token allows holders to participate in specific project whitelists and airdrop screenings.

For community and contribution tracking, Gitcoin Passport aggregates multiple accounts and on-chain behaviors into a reputation score used by applications to prevent sybil attacks and distribute incentives. Many DAOs utilize non-transferable badges to record voting participation and task completion, assigning more granular governance weights.

In DeFi and access management, projects may use SBT ownership as a gating condition—such as granting testnet access, high-quality airdrops, or enabling reputation-based collateral reduction in lending. SBTs are also commonly used for blacklisting and risk controls by restricting future participation from violating addresses.

For event operations, exchanges like Gate often collaborate with platforms such as Galxe to issue non-transferable badges after task completion. These badges function similarly to Soulbound Tokens by serving as event entry or whitelist credentials, helping prevent duplicate participation and sybil attacks.

How Can You Obtain a Soulbound Token?

Bind your wallet via the official project page.

Step 1: Select the issuer. Ensure the source of qualification is trustworthy—such as compliance credentials from exchanges, course certificates from educational institutions, or contribution badges from communities.

Step 2: Complete verification. This may involve KYC, account linking, or task completion. Connect your wallet address to your account, ensuring you use a secure and frequently used address.

Step 3: Mint or sign. Connect your wallet on the issuer’s page and click “Claim/Mint” to authorize the smart contract to issue the non-transferable credential to your address; some services use attestations requiring only an on-chain signature.

Step 4: View on-chain. Check your holdings on a block explorer or project dashboard to confirm the credential is present and non-transferable.

Step 5: Security and privacy. Avoid publicly exposing addresses containing sensitive information; if you wish to separate identities, use dedicated “identity addresses” for activities and back up your recovery phrases or enable social recovery.

Recent Trends and Data on Soulbound Tokens

Adoption is rising significantly through 2024–2025.

By Q4 2025, the number of Binance BAB holders has reached several hundred thousand—an increase driven by compliance activities and project access requirements—indicating growing user acceptance of on-chain credentials.

Throughout 2025, the cumulative number of attestations via Ethereum Attestation Service continues to rise, reaching over one hundred million statements industry-wide. Low-fee Layer 2 networks and batch signing tools have made it easier for projects to bring qualifications and reputation on-chain.

Over the past year, Gitcoin Passport has been increasingly used as an anti-sybil and weighted distribution tool by more applications, with active addresses on the rise. This trend is driven by greater emphasis on “quality participation” in airdrop and testnet events rather than just task quantity.

At the same time, identity standards and best practices are maturing. Simplified standards for non-transferable NFTs are widely adopted; on the privacy front, more issuers now support revocation/updating and minimal disclosure to alleviate concerns about permanent binding of sensitive data.

How Are Soulbound Tokens Different from NFTs?

NFTs are transferable; Soulbound Tokens are not.

NFTs function like “tradable collectible cards,” focusing on ownership and liquidity. In contrast, Soulbound Tokens resemble “personal credentials/certificates,” emphasizing qualification and reputation—they cannot be transferred or speculated upon.

The application focus also differs: NFTs are used for art collectibles, in-game assets, and ticketing; Soulbound Tokens serve for identity verification, access control, governance weighting, and risk management. Their value logic differs—Soulbound Tokens are not priced by markets but derive value from issuer-defined qualifications.

Related Terms

• Soulbound Token: A non-transferable token permanently tied to a specific wallet address, used to record identity, achievements, or qualifications.
• Smart Contract: Self-executing code on a blockchain that enforces agreement terms without intermediaries.
• Wallet Address: A unique identifier on the blockchain for receiving, storing, and sending digital assets.
• NFT: Non-Fungible Token—a unique digital asset representing ownership with indivisible and irreplaceable properties.
• On-Chain Identity: Blockchain-based digital credentials that verify user attributes and historical actions.

FAQ

Can Soulbound Tokens Be Transferred to Another Person?

No. The defining feature of a Soulbound Token is its non-transferability—it becomes permanently bound to your wallet address once minted. This is fundamentally different from regular NFTs or tokens that can be freely bought or sold. Non-transferability ensures the authenticity and uniqueness of your identity and achievements. As such, Soulbound Tokens are primarily used for recording personal accomplishments rather than as tradable assets.

What Happens if I Lose My Wallet Private Key—Will My Soulbound Tokens Disappear?

Yes. Since Soulbound Tokens are tightly linked to your wallet address, losing access means you cannot recover them. This highlights a key risk: while SBTs reinforce address uniqueness, they require careful private key management. It’s recommended to use secure storage solutions like hardware wallets for accounts containing Soulbound Tokens.

What Are the Uses of Soulbound Tokens?

Soulbound Tokens are mainly used for identity verification, achievement tracking, and building creditworthiness. They can prove you’ve completed educational programs, participated in specific projects, or acquired certain skills—applicable in educational certification, work history documentation, community contribution proofs, etc. In the future, SBTs may also be leveraged in lending protocols as credit indicators to help users secure better financing terms.

How Do Soulbound Tokens Differ from Traditional Digital Certificates?

Soulbound Tokens leverage blockchain technology for transparency, decentralization, and tamper-resistance. Traditional digital certificates depend on centralized authorities; in contrast, SBTs are enforced via smart contracts and can be independently verified on-chain by anyone. SBTs also enable the creation of comprehensive verifiable on-chain profiles for individuals’ digital identities.

Can I Manage Soulbound Tokens on Gate?

Soulbound Tokens are primarily minted and managed on public blockchains like Ethereum or Polygon through official project platforms or compatible Web3 wallets. Gate does not provide trading functions for SBTs (since they are non-transferable), but you can view related project information after connecting your wallet on Gate. For direct management of SBTs, wallets like MetaMask are recommended.