What is a Soulbound Token?
Soulbound tokens (SBTs) are non-transferable tokens representing a person’s identity using blockchain technology. This could include medical records, work history, and any type of information that makes up a person or entity.
People could have multiple wallets representing different parts of their lives. For example, someone could have a “Credentials Soul” for their work history and a “Medical Soul” for their health records or why not an “Impact Soul” for the impact/donations they’ve made. This allows people to build a verifiable, digital Web3 reputation based on their past actions and experiences.
SBTs aim to turn the NFT concept into something beyond money and bragging rights, a token that is both one-of-a-kind and non-transferable. While NFTs represent assets and property, an SBT represents a person or entity’s reputation.
An Impact use case:
In Wooy we created the concept of Proof of Donations, giving a purposeful use to NFTs. This works as an excellent tool for people to** track their donations and impact**; with the PODs, we register all the transaction information in the metadata such as who donated, when, how much, and to whom. Being able to record and allow users to see the transaction from “user to use” adding transparency to donations.
We are also giving different utilities to the PODs. By working with companies we can give the holders benefits from our sponsors and partners. For example, we can make a campaign with a streaming platform where together we invite the winners to be an extra in the next season of their top series, but everyone who receives a POD can access a free month of their platform. In this way, we give extra benefits for the holders and give an impactful way to acquire new users.
By making our PODs a Soulbound token we can use them as badges for users to show the initiatives they are supporting and as a way of really tracking who is making the donation. Allowing us to strengthen our community and give them additional benefits along the way, such as voting on which nonprofits they want to help next or which types of prizes they want.
This is an excellent use case for companies and individuals who want to build a reputation and show impact as part of their core values. Companies can show the initiatives they support, improving in this way their ESG performance and showing their customers their sustainable side. For individuals, having a POD is a constant reminder of the causes they have been helping and being able to show others what causes they could also help.
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Learn More About SBTs