The innovation potential of the SFT asset track in the new round of the market

Recently, the popularity of Move smart inscriptions has sparked people's attention to the semi-homogeneous asset (SFT) track. SFT, as a combination of NFT and FT, has greater room for innovation and combinability. It can not only be split and combined but also possesses "container" characteristics and cash flow programming capabilities, making it particularly suitable for the finance and gaming fields.

SFT originates from Ethereum's ERC-3525 standard and officially became a new token standard on Ethereum in September 2022. Despite being born in a bear market, its potential is immense. The container capability of SFT is fully demonstrated in Move inscriptions. Each time an inscription is minted, an equivalent amount of SUI is locked, which can be burned and retrieved at any time, reducing the risks for participants.

Currently, the SFT ecosystem has shown vitality in multiple areas. In terms of real-world applications, there are already projects in collaboration with the central banks of three countries. In the cryptocurrency sector, Solv has achieved a leading position in the decentralized asset management track. Innovative gameplay combining AI has also emerged in the GameFi field. Similarly, in the DePIN and SocialFi areas, projects are utilizing ERC-3525 to enhance competitiveness.

SFT has many potential innovative applications:

1. Fully automated dividend agreement: By leveraging the cash flow programming capabilities of SFT, project parties can sell future cash flow earnings in advance for financing, achieving shared risk. This model has been applied in traditional finance, but its on-chain implementation will offer greater advantages.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure for the SocialFi track. It allows for the issuance of various types of "NFT" within a single contract, facilitating the implementation of the "Open Loyalty" concept and promoting collaboration on loyalty programs between different organizations.

3. New DAO Governance Model: Based on fair sale of inscriptions and automatic dividend mechanisms, a brand new governance structure may emerge. For example, a DAO could be established through the issuance of smart inscriptions for fundraising, with a benefits distribution mechanism designed according to contributions.

4. Asset Nested Compositions: The "container" characteristic of SFT allows for multi-layer asset nesting, such as containing ETH within SFT, or containing SFT within SFT, and even more complex combinations, providing new ideas for asset management.

In this round of the market, the innovative potential of the SFT track cannot be ignored. It brings new possibilities to multiple fields, worthy of attention and exploration. However, investors still need to be cautious, conduct their own research, and participate rationally.