Term of the Moment

data exchange format

Look Up Another Term

Redirected from: NFT voting token

Definition: fungible token

A representation of an asset on a blockchain that is interchangeable. Cryptocurrencies are the prime example of fungible tokens because each coin has the same value as any other coin of the same type at any given moment. In contrast, an NFT (non-fungible token) represents a very specific item such as a work of art (see NFT).

Fungible vs. Non-Fungible Voting
A voting token is fungible when a blockchain-based governance system allows members with more tokens to have more votes. Such governance rules are defined in a decentralized autonomous organization (see DAO).

In contrast, a blockchain-based voting system for electing government officials would use non-fungible tokens (NFTs) because only one vote is allowed per person, and each qualified voter would have one voter NFT. Many believe such systems should be created because every transaction would be transparent and constantly validated. Hackable in any manner? One hopes not. "Trust the algorithm" is the motto of the crypto world. See governance token and DAO.