Example of using Soul bound token (SBT) | Build the Sustainable Web3 World
Soul bound token (SBT) has attracted a lot of attention in the web3 field since it was proposed by vitalick in January this year, and the following cases have been confirmed recently:
・SBTs × GameFi = NFT Lego
・Credit System
・TokengatedCommerce
Not only can SBT curb some of the malicious speculation in the market and leverage it in the social environment, we believe it can be used to build a sustainable ecosystem.
This time, I will explain the use case of SBT and an example of using it.
In MMORPG, the following discussion of “soul bound” has been going on since 2011, so the concept of SBT as a source exists in the context of the game.
The role of SBT is not as a subject, but as an element that supports the stability and continuity of the ecosystem. The current role of SBT is to curb a certain degree of current short-term and speculative nature.
For example, if you have Doodle for 3 months, you will get one SBT as a proof that you are holder.
So this business model also satisfies people’s desire for self-expression to some extent. Even in the real world, there are business models that give discounts to customers based on their loyalty to a brand, so it is possible for SBTs to spread from the cryptocurrency market to the real world.
It is because of such characteristics that we strongly believe SBT may contribute to the progress of the cryptocurrency market ✌️
Currently, there are many activities involving the issuance of POAPs, which is to some extent the initial use of SBT.
In Japan, SBI NF and Lawson are jointly developing ticket NFTs, and there will be many cases in the future in the sense of sustainable Web3 culture.
Let’s start by looking at the success stories where SBT has been used:
① SBTs × GameFi = NFT Lego
In GameFi “Skybreach”, items/lands of each attribute can be obtained as NFT, and characters can equip skills and experience values as SBT.
・Increasing the compatibility of attributes
・Obtaining skills by upgrading
It seems that the initiative to express the elements set in RPGs so far as tokens will continue in the future as well.
We are also looking forward to how the SBT, given away by the world-renowned GameFi, will change the digital reputation system in the GameFi space once the bundled items are deployed and will serve as digital brand icons.
②Credit System
Scott Kominers advocates rebuilding the real-world reputation system by combining NFT / SBT.
Many current Web3 projects have the following problems.
Pre-distribution of tokens / No Product MarketFi / Token price drops, causing ecosystem collapse.
Such cases abound and many project owners are struggling to find more sustainable token incentive designs.
We can see that success stories have been created in projects such as Helium and Arweave where tokens are continuously available once set, but for transferable tokens and NFTs, the “selling pressure” that causes token prices to fall will be a major issue.
Scott Kominers proposes the following two reputation systems for tokens, where users, by acquiring SBTs, can facilitate feedback loops by creating mechanisms for granting tokens.
SBT：
:Used as a non-transferable credibility token
:Tokens can be earned based on the level of contribution
:Transferable tokens (FT / NFT) that are periodically distributed to SBT holders
While still in the proof-of-concept phase, we believe that the social implementation of SBT will progress as more cases are created in this reputation system design.
③TokengatedCommerce
Packy McCormick’s concept of “Tokengated Commerce” suggests that
“Web3” is an environment that creates consensus for establishing new standards. Everything is a smart contract address, everything is a tokenID, everything is a wallet address.
That’s the definition of Web3.
So far there has been a Tokengated web3 culture like Discord, which means that only people with certain NFTs are allowed to access certain channels.
However, in the future, we will consider creating further 「Tokengated Commerce」type of online shopping. As an example of 「Tokengated Commerce」, Shopify has confirmed that it will offer CoolCat NFT holders exclusive access to CoolCat hats ✌️
By connecting the retail market with “Web3” in a way that will give each company and community a new “competitive edge”, the following companies are recently working on the release of NFT.
We are confident that the proportion of SBTs used in the retail market will also expand in the future.
Tips:
Assuming the entire market is still in the stage of original IP content creation by NFT starting around February 2021, it is unknown if an ecosystem/worldview will develop in the future including the general public.
Because of the “non-transferable” nature of SBT, we believe that SBT will have a greater use in the future.
Slash Web3 Payment will further promote SBT related business in the future, so just stay tuned😤
plz check the test network of Slash Web3 Payment:
