The Potential and Innovative Applications of SFT Assets in a Bull Run

With the popularity of Move smart inscriptions, the semi-homogeneous asset (SFT) track is gaining widespread attention. SFT, as a combination of NFT and FT, not only has the ability to be split and combined but also offers greater innovation space and combinability. Its "container" characteristics and cash flow programming capabilities make it particularly suitable for the finance and gaming sectors.

The successful demonstration of Move Smart Inscription showcases the potential of SFT. Each inscription locks an equivalent amount of SUI as a minting fee, which can be burned and reclaimed at any time. This mechanism reduces the risk for participants while also offering the potential for high returns.

Currently, the SFT ecosystem has made progress in multiple fields. In terms of real-world applications, there are projects that have adopted the ERC-3525 standard in collaboration with the central banks of three countries. In the cryptocurrency sector, Solv has become a leader in the decentralized asset management space, with a issuance scale surpassing 100 million USD. The GameFi field has also seen some innovative applications, such as AI-driven NPC interactions with player assets, and a points-sharing system across multiple game types.

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

1. Fully Automated Dividend Agreement: Utilizing the cash flow programming capabilities of SFT, project parties can sell future cash flow earnings in advance for financing, achieving shared risk. This model is similar to the "drip financing" in traditional finance, but its implementation on the blockchain offers greater advantages, with everything executed automatically by smart contracts.

2. Web3 Fan/Creator Economy: SFT provides a flexible asset structure that better realizes the tokenization of fan relationships. It allows for the issuance of multiple types of "NFT" within a single contract, facilitating collaboration and benefit distribution among different creators, and achieving an "open loyalty" program.

3. New DAO Governance Model: Based on fair sale of inscriptions and automatic dividend mechanisms, a brand new DAO governance structure may emerge. Early members can decide the initial profit distribution based on their investment amount and design mechanisms to incentivize future contributors.

4. Asset Nested Combination: The "container" feature of SFT allows for multi-layer asset nesting, such as embedding ETH within an SFT, or embedding another SFT within an SFT, and even designing complex structures that require specific SFT burning to unlock.

In this bull run, the SFT track has demonstrated great potential for innovation and imagination. From both a technical perspective and application prospects, SFT deserves close attention. With the emergence of more innovative ideas, SFT is expected to become an important force driving the development of Web3.