SFT Semi-Homogeneous Assets: Innovative Opportunities in a Bull Run

After the Move smart inscriptions have attracted widespread attention, the SFT (Semi-Fungible Token) sector is expected to experience a surge in the upcoming bull run. As a combination of NFT and FT, SFT not only possesses greater innovation potential and combinability but also has unique "container" attributes and cash flow programming capabilities.

SFT originates from Ethereum's ERC-3525 standard and officially became a new token standard for Ethereum in September 2022. Although it was born in a bear market, its potential is immense, especially suitable for the finance and gaming sectors. The container capability of SFT is fully reflected in the Move inscription, where an equivalent amount of SUI is locked with each minting, which can be burned at any time to retrieve it, greatly reducing the risk for participants.

Currently, the SFT ecosystem has made progress in multiple fields. In terms of real-world applications, projects have already collaborated with the central banks of three countries. In the cryptocurrency sector, the decentralized asset management platform Solv has become a leader, with issuance scale exceeding 100 million USD. In the GameFi sector, innovative applications have emerged, including AI-integrated NPC interactions and multi-game point sharing.

Looking ahead, SFT has various potential innovative gameplay options:

1. Fully Automated Dividend Agreement: Utilizing the cash flow programming capabilities of SFT, project parties can sell future cash flow revenues in advance for financing, achieving shared risk. Smart contracts can automatically distribute earnings based on held shares, without needing to consider the circulation of shares.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure for the SocialFi sector. A single contract can issue multiple types of "NFTs", enabling collaboration between different creators and the distribution of fan benefits, creating an "Open Loyalty" ecosystem.

3. Innovative DAO Governance Model: Based on fair sale of inscriptions and automatic dividend distribution mechanism, it may give rise to a new type of DAO governance structure. Early members determine the initial profit distribution based on their contributions, while designing mechanisms to incentivize future contributors.

4. Asset Nested Combinations: The "container" feature 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 infinite possibilities for asset management.

The innovative potential of SFT has yet to be fully explored. In the context where the current bull run is generally perceived to lack innovation and narrative, the SFT sector undoubtedly deserves close attention. However, investors should remain cautious and make decisions after thorough research. Looking forward to the emergence of more innovative ideas to jointly promote the development of the SFT ecosystem.