Decentralized identity is a crucial topic in today’s digital age, and it’s no wonder that conversations surrounding it continue to thrive at Consensus 2023. However, during a panel discussion on how to protect one’s identity, a consensus was reached that soulbound tokens (SBTs) were not the way forward. Decentralized identity has been explored by some of the brightest minds in the industry, including notable figures such as Jack Dorsey and Vitalik Buterin, the co-founder of Ethereum. Buterin has proposed the idea of SBTs as non-transferable non-fungible tokens (NFTs) that represent a person’s identity and achievements in Web3. However, Daniel Buchner, Block’s head of decentralized identity, expressed his strong disagreement with this approach during the panel discussion. According to Buchner, SBTs are largely a fraudulent meme that don’t add any value to decentralized identities. Buchner added that a blockchain or a token is not necessary for decentralized identities. Evin McMullen, co-founder and CEO of disco.xyz, echoed this sentiment, stating that it’s imperative not to adopt consent-free primitives that require manually hiding unwanted assets in NFT interfaces. McMullen went on to suggest the idea of rotating keys behind the scenes of DIDs to prevent the catastrophic loss of an identity profile. The third panelist, Tyrone Lobban, head of blockchain and Onyx digital assets at JPMorgan, agreed with his co-panelists and recommended developers to experiment and become familiar with verifiable credentials. The unanimous agreement among panelists that SBTs are not the way forward is noteworthy, particularly because Buterin is widely viewed as an important figure in the crypto industry. Despite this, SBTs are not gaining much support from industry leaders, and for good reason. Decentralized identities must be secure and accessible to everyone, and SBTs fail to address these needs. Instead, we need to focus on solutions that are inclusive and easy to use for all. The future of decentralized identities relies on the continued collaboration and exploration of industry experts and leaders to find the best solutions for everyone.