--- title: Fungible Token url: "https://www.unknowngravity.com/en/glosario/token-fungible" site: Unknown Gravity published: "2025-06-07T15:16:18+00:00" modified: "2026-07-30T15:43:02+00:00" language: en-US description: "A fungible token is a type of digital asset issued on blockchain, whose units are interchangeable, divisible and homogeneous, that is, each token has the same value, properties and function as…" section: "Home > Fungible Token" --- # Fungible Token GLOSSARY · BLOCKCHAIN & WEB3 A token that can be exchanged for an identical token, used as a currency or as a representation of assets. WHAT IS IT? · FOR DUMMIES A **fungible token** is like a **digital currency**: they are all worth the same and you can swap one for another without noticing any difference. If you have 1 token and someone else gives you another one just like it, it's as if nothing changed. They are used for payments, exchanges or representing value, just like physical coins or banknotes. WHAT IS IT? · PRO A **fungible token** is a type of **digital asset issued on blockchain**, whose units are **interchangeable, divisible and homogeneous**, that is, each token has the **same value, properties and function as another of the same type**. This feature makes it the ideal representation for coins, points, credits, stablecoins and digitized financial assets, allowing its use in payments, exchanges, governance and internal functions of Web3 protocols. Fungibility is essential so that tokens can be used as **efficient medium of exchange**, since there is no need to distinguish between individual tokens. For example, an ERC-20 token such as USDT, DAI, or LINK allows a user to transfer any unit without worrying about its specific origin or history. Technically, fungible tokens are usually implemented using standards such as: - **ERC-20** on compatible Ethereum and EVM. - **BEP-20** on BNB Chain. - **SPL** at Solana.\ These standards define functions such as `Transfer`, `Balance of`, `Approve` and `TransferFrom`, which guarantees its interoperability with wallets, exchanges, DeFi platforms and smart contracts. In addition, fungible tokens can represent: - **Cryptocurrencies owned by a network** (e.g. ETH, MATIC, SOL). - **Stablecoins linked to real assets** (e.g. USDC, EURC). - **Rights of Use or Participation**, such as governance tokens. - **Tokenized assets**, such as gold, energy or fractional business shares. Its design must take into account principles of **Tokenomics**, **legal regulation**, **liquidity**, and **usage model within the ecosystem**, since their behavior can directly affect the viability of a decentralized protocol or product. ## 01 / Key points - Represents digital units that are the same and replaceable with each other - Ideal for payments, rewards, coins, stablecoins or governance tokens - Compatible with standards such as ERC-20 (Ethereum), BEP-20 (BNB Chain), SPL (Solana) - All units have the same value and functionality - Easily integrates with DeFi, dApps, exchanges and wallets ## 02 / Advantages - **High liquidity and ease of exchange** - **Extensive and well-supported standards by the Web3 industry** - **Ideal for representing economic value, participation or use within platforms** - **Divisibility**, allowing fractions of use or investment - **Compatible with automation mechanisms and smart contracts** ## 03 / Disadvantages - **It does not allow you to identify unique assets**, as is the case with NFTs - **Higher exposure to market manipulation if you don't have solid backup** - **May require regulatory compliance if used as a financial security** - **It does not provide visual or narrative differentiation between units** - **It can generate oversupply and loss of value if its issuance is not well managed** RELATED CONCEPTS [Token](/en/glosario/token) [ERC-20](/en/glosario/erc-20) [Cryptocurrency](/en/glosario/criptomoneda) [Security Token](/en/glosario/security-token) KEEP LEARNING [Tokenomics that work: How to design an economy that doesn't collapse in 6 months](/en/articulos/tokenomics-que-funcionan-como-disenar-una-economia-que-no-se-derrumbe-en-6-meses) [What assets can you (really) tokenize? From theory to real cases](/en/articulos/que-activos-puedes-tokenizar-de-verdad-de-la-teoria-a-los-casos-reales) [How to create your own blockchain-based cryptocurrency](/en/articulos/crear-tu-propia-criptomoneda-blockchain) [Comparison of smart contracts programming languages](/en/articulos/lenguajes-programacion-smart-contracts) [What Do Blockchain Developers Do?](/en/articulos/que-hacen-los-desarrolladores-blockchain) RELATED SERVICES [Token development](/en/servicios/desarrollo-de-tokens) [Token issuance](/en/servicios/emision-de-tokens) [Tokenomics](/en/servicios/tokenomics) [Web3 Development](/en/servicios/desarrollo-web3) [Cryptocurrency development](/en/servicios/desarrollo-de-criptomonedas) [Full glossary](/en/glosario) This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).