Potential Opportunities and Innovative Approaches in the SFT Asset Track

With the explosive popularity of Move smart inscriptions, the semi-homogeneous asset (SFT) track may experience a surge in the upcoming bull market. As a hybrid of NFT and FT, SFT has greater innovative potential and combinability, while also possessing "container" characteristics and cash flow programming capabilities.

SFT originates from the ERC-3525 standard on Ethereum and officially became a new token standard on Ethereum in September 2022. Despite its inception during a bear market, its immense potential has yet to be fully realized. SFT is particularly suitable for the financial and gaming sectors, allowing for the construction of complex asset structures.

The Move inscription fully demonstrates the container capabilities of SFT. Each time an inscription is minted, an equivalent amount of SUI is locked as the minting fee, which can be retrieved at any time by burning it, while also causing a certain level of deflation. This mechanism ensures that first-level participants almost never incur losses, only needing to pay a small gas fee for the chance to obtain high returns.

Currently, the SFT ecosystem has made progress in multiple areas:

1. Real-world applications: Collaborating with the central banks of three countries to promote the application of Web3 technology in practical scenarios.
2. DeFi Sector: On-chain fund business is developing rapidly, with asset issuance scale surpassing 100 million USD.
3. GameFi Field: Combining AI to enable interaction between NPCs and player assets, facilitating points sharing across multiple game genres.
4. DePIN and SocialFi fields: Several projects leverage the advantages of ERC-3525 to enhance competitiveness.
5. Modern Cryptography: The combination of SFT and modern cryptography has created new possibilities.

There are more potential innovative gameplay for SFT in the future:

1. Fully Automated Dividend Agreement: By utilizing the cash flow programming capabilities of SFT, project parties can sell a portion of future cash flow earnings in advance for financing, achieving risk sharing. Smart contracts can automatically execute dividends without the need to pay attention to the circulation of shares.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure for the SocialFi sector. Multiple types of "NFT" can be issued within a single contract, enabling interaction and benefit distribution between different creators/rooms, and building an "Open Loyalty" ecosystem.

3. New DAO Governance Model: Based on fair issuance of inscriptions and automatic dividend mechanisms, it may give rise to a brand new DAO governance structure. Early members determine the initial profit distribution based on their contributions and design mechanisms to incentivize future contributors.

4. Asset Nesting Combination: The "container" feature of SFT enables multi-layer asset nesting, such as SFT containing ETH, SFT nested within SFT, etc., providing new ideas for asset management and interaction.

The innovative potential of the SFT track is enormous and worth close attention in the upcoming bull market. It can not only bring new innovative space to various fields but may also become an important force driving the development of the entire crypto market.