Written by Pablo Gómez
Founder & CEO at Metlabs · Reviewed on October 11, 2026
Balances are expressed as quantities rather than individually identified units. Permissions, decimals and transfer rules depend on the contract.
In ERC-20, the contract records a balance for each address and supports transfers and spending approvals. Decimals describe how quantities are displayed; they do not turn a unit into a legal fraction of an asset. Two tokens with the same symbol can belong to different contracts.
A fungible token can represent payment units, access or shares. It differs from an NFT in the technical equivalence of units within the issuance. Restrictions, blocklists and issuer rights need separate assessment.
Sources
Also known as
- Fungible token
