The Innovative Potential of SFT Assets and Their Opportunities in the New Bull Run

Recently, the popularity of Move smart inscriptions has attracted industry attention to semi-fungible tokens (SFTs). As a combination of NFTs and FTs, SFTs have unique advantages and significant innovation potential, and are expected to become one of the important tracks in the upcoming bull run.

The Essence and Advantages of SFT

SFT is derived from Ethereum's ERC-3525 standard and officially became Ethereum's new token standard in September 2022. As a super NFT, SFT can not only be split and combined but also has "container" properties and cash flow programming capabilities. These features make it particularly suitable for the design of complex asset structures in the financial and gaming sectors.

The Move inscription protocol fully demonstrates the container capability of SFT. Each time an inscription is minted, an equivalent amount of SUI tokens is locked. Users can burn inscriptions at any time to retrieve their principal, while also creating a deflationary effect. This mechanism greatly reduces the risk for participants, allowing them to obtain potentially high returns by paying only a small gas fee.

Innovative Application Scenarios of SFT

1. Fully Automated Dividend Agreement: The cash flow programming capability of SFT makes it an ideal automatic dividend distribution tool. Project parties can sell a portion of future cash flow revenue in advance for financing, achieving shared risk. Smart contracts can automatically distribute profits based on shareholding without manual intervention.

2. Web3 fan/creator economy: SFT provides a more flexible asset structure for the SocialFi track. A single contract can issue multiple types of "NFTs", simplifying the technical difficulty of cross-creator collaboration and fan benefit distribution. At the same time, its automatic dividend feature facilitates the distribution of benefits based on fan contribution.

3. Innovative DAO Governance Model: Based on a fair sale and automatic dividend mechanism using smart inscriptions, a new type of DAO governance structure may emerge. For example, by issuing smart inscriptions to raise funds for the establishment of a DAO, the initial benefit distribution can be determined by the financial contributions of early members, and incentive mechanisms can be designed to attract future contributors.

4. Asset Nested Portfolio: The "container" feature of SFT supports multi-layer asset nesting, such as embedding ETH within SFT or embedding another SFT within SFT. This flexible combination method brings infinite possibilities for asset management and trading.

Current Status of the SFT Ecosystem

In terms of real-world applications, there are already projects collaborating with multiple central banks to promote the application of Web3 technology in practical scenarios. In the cryptocurrency field, Solv has become a leader in the decentralized asset management space, with issuance scale exceeding 100 million USD.

The GameFi sector has also seen some innovative applications, such as using SFT features to enable AI-driven NPC and player asset interactions, as well as cross-game point-sharing systems. In addition, projects in the DePIN and SocialFi fields have begun to explore the potential of SFT, generating some interesting applications combined with modern cryptography.

Conclusion

The innovative potential of SFT has yet to be fully tapped. In the context where the market generally believes that this bull run lacks innovation and narratives, the SFT track is undoubtedly worth close attention. It not only brings new innovation space to various fields but is also expected to become an important force in driving the development of Web3 technology.