The Innovative Potential and Application Prospects of SFT Assets in the Current Market Environment

With the popularity of Move smart inscriptions, the SFT( Semi-Fungible Token) semi-fungible asset track is expected to experience an explosion in the future market. As a combination of NFT and FT, SFT has greater innovation potential and versatility, making it particularly suitable for the financial and gaming sectors.

SFT originates from Ethereum's ERC-3525 standard and officially became a new token standard on Ethereum in September 2022. It has "container" properties and cash flow programming capabilities, allowing for the creation of complex structured assets. In Move inscriptions, the container capabilities of SFT are fully demonstrated, as each minting of an inscription locks up an equivalent amount of SUI, which can be burned at any time to recover costs.

Currently, the SFT ecosystem has been applied in multiple fields. In the real world, there are projects using the ERC-3525 standard in collaboration with the central banks of three countries. In the cryptocurrency sector, the DeFi project Solv utilizes SFT for on-chain fund operations, becoming a leader in the decentralized asset management space. In the GameFi sector, innovative gameplay has emerged that combines AI-driven NPCs with player asset interactions and multi-game type point sharing.

SFT still has many potential innovative applications in the future:

1. Fully Automated Dividend Agreement: Utilizing the cash flow programming capabilities of SFT, project parties can sell a portion of future cash flow revenue in advance to raise funds, achieving shared risk. Smart contracts can automatically distribute earnings according to the holders' shares.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure that allows the issuance of various types of "NFT" within a single contract, facilitating cross-creator collaboration and "Open Loyalty" programs.

3. New DAO Governance Model: Based on fair sale of inscriptions and automatic dividend mechanism, it may give rise to a brand-new governance structure, such as establishing a DAO through the issuance of smart inscriptions for fundraising and designing mechanisms to incentivize future contributors.

4. Asset Nested Combinations: The "container" feature of SFT allows for multi-layer asset nesting, such as ETH contained within SFT, or SFT contained within SFT, and even more complex combinations, providing greater possibilities for asset management.

The innovative space of SFT has yet to be fully explored. In the current market environment, the SFT track is worth the close attention of investors and developers, and is expected to become one of the important driving forces in the next bull market.