GlossaryAdvanced
Token-Bound Account
A smart contract account directly controlled by an NFT, letting the NFT itself own assets and interact with applications.
A token-bound account is a smart contract account directly controlled by ownership of a specific NFT (see Kaavon's "Non-Fungible Token" glossary definition), letting the NFT itself hold other assets and interact with applications, rather than only existing as a static, standalone item.
This means an NFT can accumulate its own transaction history, hold other tokens or NFTs, and build an on-chain identity over time — when the NFT itself is transferred to a new owner, control of its token-bound account and everything it holds transfers along with it.
Examples
- A gaming NFT with a token-bound account could directly hold in-game items or achievement tokens earned through gameplay, rather than tracking them separately.
- Transferring an NFT with a token-bound account also transfers control of everything that account holds, since the account is directly tied to NFT ownership.