The SFT track may experience a surge during the bull run.

The popularity of Move smart inscriptions has sparked people's interest in SFT (Semi-Fungible Token). As a combination of NFT and FT, SFT offers greater innovative potential and flexibility, making it particularly suitable for the finance and gaming sectors.

SFT originates from the ERC-3525 standard of Ethereum and officially became a new token standard for Ethereum in September 2022. Despite being born in a bear market, its potential is immense. SFT can be understood as a super NFT that can be split and combined, possessing "container" properties and cash flow programming capabilities.

The Move smart inscription fully demonstrates the container capability of SFT. Each time an inscription is minted, an equivalent amount of SUI is locked as a minting fee, which can be burned at any time to recover the principal, while causing deflation. This mechanism ensures that participants almost never lose money, as they only need to pay a small gas cost to potentially gain high returns.

Currently, SFT has been applied in various fields. In the DeFi sector, on-chain fund operations have exceeded an asset issuance scale of over a hundred million dollars. In the GameFi sector, the characteristics of SFT have enabled AI-driven NPC and player asset interactions, as well as point sharing across multiple game types. Projects in the DePIN and SocialFi sectors have also combined with ERC-3525 to enhance competitiveness.

SFT has more potential innovative gameplay:

1. Fully Automated Dividend Agreement: Utilizing the cash flow programming capabilities of SFT, project parties can sell a portion of future cash flow revenues in advance for financing, achieving shared risk. Smart contracts can automatically distribute dividends based on the holders' shares.

2. Web3 Fan/Creator Economy: SFT provides a more flexible asset structure that allows for the issuance of various types of "NFT" within a single contract, realizing the "Open Loyalty" narrative, making it easier for different organizations to share loyalty programs.

3. New DAO Governance Paradigm: Based on fair sales of inscriptions and an automatic dividend mechanism, a completely new governance structure may emerge. Early members can determine the initial profit distribution based on their contribution amount and design mechanisms to incentivize future contributors.

4. Asset Nested Combination: Utilizing the "container" feature of SFT, multi-layer asset nesting can be achieved, such as embedding ETH within SFT, or embedding SFT within SFT, or even more complex combinations.

In the current market, which is generally considered to lack innovation and narrative, the SFT track may bring new opportunities and imaginative space for this bull run. Both investors and project teams should closely monitor the development in the SFT field and explore its potential application value.