SFT Assets: New Opportunities and Innovative Strategies in a Bull Run

The popularity of Move smart inscriptions has sparked people's attention to SFT (Semi-Fungible Token). As a combination of NFT and FT, SFT has unique characteristics and great potential, expected to experience a surge in the upcoming bull run. This article will explore the concept of SFT, its advantages, and the innovative opportunities it may bring in various fields.

The Essence and Advantages of SFT

SFT originates from the ERC-3525 standard of Ethereum and officially became a new token standard on Ethereum in September 2022. It combines the characteristics of NFTs and FTs, allowing for splitting and combining, while possessing the properties of a "container" and cash flow programming capabilities. These features make SFT particularly suitable for complex fields such as finance and gaming.

SFT Applications in Move Inscription

The container capability of SFT is fully reflected in Move inscriptions. Each time an inscription is minted, an equivalent amount of SUI is locked, and users can burn the inscription at any time to retrieve their principal. This mechanism reduces the risk for participants while also creating a certain deflationary effect.

Potential Innovative Gameplay of SFT

1. Fully Automated Dividend Agreement: By leveraging the cash flow programming capabilities of SFT, project parties can sell future portions of their revenue in advance to finance and achieve shared risk. Smart contracts can automatically distribute earnings based on held shares.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure for the SocialFi track. Multiple types of "NFT" can be issued within a single contract, enabling collaboration and benefit distribution among different creators.

3. New DAO Governance Model: Based on fair sale of inscriptions and automatic dividend distribution mechanism, a brand new DAO governance structure may emerge to resolve conflicts in benefit distribution.

4. Asset Nested Combinations: Utilizing the "container" feature of SFT, multi-layer asset nesting can be achieved, such as embedding ETH within SFT, or SFT within SFT, providing more possibilities for asset management.

SFT Ecosystem Status

Currently, SFT has shown application potential in multiple fields:

• Real World: Collaborate with multiple central banks to promote the implementation of Web3 technology in practical applications.
• DeFi: Solv has become a leader in the decentralized asset management track, with asset issuance scale exceeding 100 million USD.
• GameFi: Combining AI to achieve asset interaction between NPCs and players, enabling points sharing across multiple game types.
• DePIN and SocialFi: Multiple projects leverage the advantages of ERC-3525 to enhance competitiveness.
• Modern Cryptography: The combination of SFT and modern cryptography has generated new application possibilities.

Conclusion

SFT, as an innovative asset type, may become an important focus in the upcoming bull run. It not only brings new innovative space to various fields but also provides new ideas for solving existing problems. As the market's demand for innovation and new narratives increases, the SFT sector is worth the close attention of investors and developers.