Web3 Gaming & GameFi
On-Chain Items and Token Standards · 1/2

Fungible vs. non-fungible in-game assets

In-game currencies (gold, gems) are usually fungible tokens, every unit is identical and interchangeable, similar to how every dollar bill is worth the same as any other. In-game items (a unique sword, a rare skin) are usually non-fungible tokens (NFTs), each one distinct, even if they look similar.

This distinction matters for game design: fungible tokens power an economy's currency layer, while NFTs represent the unique items, characters, or land players actually collect and show off.