After the Move smart inscription trend, the innovation space for SFT assets is vast.

Recently, the popularity of Move smart inscriptions has sparked market interest in SFTs (Semi-Fungible Tokens). As a combination of NFTs and FT, SFTs possess unique characteristics and broad application prospects, and are expected to experience a surge in the upcoming bull market.

SFT originates from the Ethereum ERC-3525 standard and officially became a new token standard on Ethereum in September 2022. It combines the advantages of NFTs and FTs, with the ability to split and combine, while also possessing "container" properties and cash flow programming capabilities. These features make SFT particularly suitable for complex asset structures in the financial and gaming sectors.

The Move smart inscription fully demonstrates the container capability of SFT. Each inscription locks an equivalent amount of SUI tokens upon minting, which can be retrieved at any time by burning, and this mechanism reduces the risk for participants while also causing a certain deflationary effect.

The SFT ecosystem has made progress in several areas. In terms of real-world applications, there are projects that have adopted the ERC-3525 standard in collaboration with multiple central banks. In the cryptocurrency sector, on-chain fund businesses based on SFT have become leaders in the decentralized asset management track. In the GameFi sector, innovative gameplay combining AI has also emerged, such as asset interaction between NPCs and players.

There are many potential innovative applications for SFT in the future:

1. Fully Automated Dividend Agreement: Using the cash flow programming capabilities of SFT, project parties can sell a portion of future cash flow revenues in advance for financing, achieving shared risk. Smart contracts can automatically execute dividends without manual intervention.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure that helps achieve on-chain tokenization of fan relationships. Its automatic dividend feature also facilitates the distribution of benefits based on fan contribution.

3. New DAO Governance Model: Based on fair sale of inscriptions and automatic dividend mechanisms, a new DAO governance structure may emerge, designing more reasonable incentive mechanisms for early contributors and future participants.

4. Asset Nested Combos: The "container" feature of SFT makes multi-layer asset nesting possible, providing more possibilities for asset management and interaction.

As the market's demand for innovation and new narratives increases, the potential of the SFT track is gradually becoming apparent. In the upcoming bull market, SFT is expected to become one of the areas of great interest.