Help me understand the NFT-721 Tag

Ardana recently launched its DANA token and people noticed it was tagged as an NFT. When asked about it, one of the Ardana team members said it was done to ensure no more DANA tokens could be minted in the future.

Does someone want to take on the challenge of explaining this minting policy to a small brain? Maybe using ETH NFT minting as a counter example?

NFT stands for non-fungible token. It is intended to be a unique token as in one and only one ever will be minted and no other token is then comparably equivalent to it. The 721 tag is a throwback to Ethereum ERC-721 standard regarding the type and format of meta data a NFT should have.

From a cursory search of Ardana and the DANA token it should be a fungible token for governance, liquidity, etc if they are planning on making a stable coin based defi platform. This could be more comparable to an ERC-20 token for example. There would be no logical reason to use the 721 meta data label in this case. Arguably there is no logical reason to use an Ethereum standard meta data label in Cardano ever but that ship sailed some time ago.

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Thank you, this was very helpful! When asked for elaboration they didn’t say much except to assure me the token was fungible. Does this sound more like an error being spun as a feature to you?