What Are the Characteristics of a ‘Non-Transferable’ or ‘Soulbound’ Token?

A non-transferable token, often called a Soulbound Token (SBT), is a unique digital asset permanently linked to a specific wallet address and cannot be sold or transferred to another user. These tokens are used to represent non-financial attributes like identity, reputation, or credentials, such as a proof of governance participation or a verified PoP status.

Their non-transferability makes them effective tools for anti-Sybil measures and preventing the sale of governance influence, as the token cannot be used in a vote-buying scheme.