Fungibility is an observable, objective market emergent phenomenon, not subject to subjective value.

Fungibility isn't some abstract theory or subjective whim. It's not a percentage of fungibility or some kind of fungible.

It's a real world observable, objective outcome where free markets generally treat units like satoshis or dollars or any other money or commodity as equal in value.

If steaks (organic, conventional, or low-quality) trade in distinct markets with different values, they’re not fungible across those markets, but within each market (like organic steaks), they are fungible if valued equally.

If they don't trade in the observed general market equally, they aren't fungible. Like 100 years ago, all ribeye steaks might have been fungible.

Organic pork bellies are fungible because they generally trade at equal value within their specific market.

For example: standardized organic pork belly futures contracts are valued the same per unit on organic commodity exchanges like the CME

There could be groups or people who don't want certain pork bellies for whatever reason or value them differently, some could be flagged, none of that means organic pork bellies aren't fungible.

Similarly, conventional pork bellies are fungible in their market (e.g., standard CME pork belly futures), where one unit trades 1:1 with another, as noted in commodity market definitions unanimously from institutions and CME Group resources.

If the market, whether for organic or conventional or both combined into one group (organic and conventional pork bellies are separately fungible, not fungible together as described above), treats each unit as interchangeable with the same price per pound, they’re fungible within that market, just like the steak example.

I'm not a meat market expert, but my guess is different ribeye steaks from different cows fetch different prices, so obviously those would not be fungible.

If they did fetch the same price on the general market place, regardless of their differences, they would be fungible. Not a certain percentage fungible, but fungible.

Currently all steaks are obviously not priced at the same price per weight so they aren't fungible.

Organic ribeye steaks, if generally traded at equal value in the particular objectively observed market, would be fungible, and conventional if treated the same would be fungible.

Fungibility’s an observable, objective market phenomenon-organic or conventional steaks may trade at different values across markets, but within each, they’re fungible if valued 1:1, per Mises and all credible economics.

Your UTXO and steak claims fail; satoshis are fungible in Bitcoin’s market despite traceable histories, just like anything else.

In another note here, I also added resources explaining why transparency strengthens fungibility and why it's important for base layer money.

In past comments I added economists, institutions and legal definitions, real applications and explanations from present day back to the inception of the term. There has always been unanimous consensus in the terms meaning.