Semi-Fungible Tokens (SFTs) on MultiversX

What Are SFTs?

How SFTs Work

• Dual Nature: SFTs can initially act as fungible tokens, meaning different tokens are interchangeable with each other. However, after a certain event or use—such as the conclusion of an in-game tournament or redemption for a reward—the tokens can become non-fungible, each now unique and individualized.
• Use Cases: SFTs are great for items like game assets, event tickets, digital certificates, or loyalty points—where a group of tokens is initially identical, but individual tokens may later need unique identity or metadata attached13.
• Protocol Integration: The MultiversX network’s ESDT standard manages SFTs with native protocol support, allowing fast, cost-efficient transactions and direct token storage under user accounts without smart contract complexity123.

SFTs vs. Meta ESDTs

• Meta ESDTs: A subset of SFTs called Meta ESDTs exists on MultiversX. Meta ESDTs are standard ESDTs with special properties (such as time-locking), similar to token extensions on other platforms like Solana. The key technical difference is that SFTs include a Uniform Resource Identifier (URI), supporting metadata and unique identification, while Meta ESDTs do not43.

Unique Characteristics on MultiversX

• Efficient Sharding: SFTs (as ESDTs) are seamlessly integrated with MultiversX's adaptive sharding, making them efficient to use, with reduced transaction costs1.
• Secure Ownership: User accounts can natively hold multiple types of SFTs (along with fungible tokens and NFTs) securely and efficiently, preserving direct control and storage at the protocol level12.

Conclusion