SFT Use Cases

Explore practical applications where Semi-Fungible Tokens provide unique advantages over traditional token types. Each use case includes implementation guidance specific to Klever Blockchain.

Gaming & Virtual Worlds

Game Items & In-Game Economies

What It Solves: Traditional gaming stores items in centralized databases—players don't truly own their assets. Deploying separate contracts for currencies (FT) and unique items (NFT) is expensive and complex.

How SFTs Work Here: Create multiple token IDs under one contract:

ID 1: Gold coins (supply: unlimited, fungible)
ID 2: Health potions (supply: 100,000, fungible within type)
ID 3: Epic Sword v1 (supply: 500, all identical stats)
ID 4: Epic Sword v2 (supply: 100, upgraded stats)
ID 5: Legendary Dragon Blade (supply: 1, unique)

Each player's inventory becomes a single wallet holding multiple token IDs, enabling atomic trades ("3,000 gold + Epic Sword for your Legendary item").

Klever Tips:

Use the attributes field in KDA to store stats on-chain
Set royalties (e.g., 5%) to earn from secondary market trades
Consider a KDA Fee Pool so players pay fees in your game token, not KLV

Collectible Card Games / Digital Trading Cards

What It Solves: Physical card games struggle with authentication, scarcity enforcement, and secondary market tracking.

How SFTs Work Here: Each card edition becomes a token ID:

ID 100: "Fire Dragon – Common" (supply: 10,000)
ID 101: "Fire Dragon – Rare Holographic" (supply: 500)
ID 102: "Fire Dragon – Artist Signed Edition" (supply: 50)

Business Model:

Pack Sales: Sell sealed packs as fungible SFTs; opening burns the pack and mints revealed cards
Guaranteed Rarity: Smart contracts ensure pack contents match published odds
Creator Royalties: Earn 5-10% on every secondary sale automatically

Metaverse / Virtual World Assets

How SFTs Work Here:

ID 1: "Blue Hoodie v1" (supply: 10,000, common wearable)
ID 2: "Blue Hoodie v1 – Gold Trim" (supply: 500, rare variant)
ID 3: "Land Parcel – Zone A" (supply: 100, standard plots)

Interoperability Vision: The same wearable SFT could theoretically render across multiple compatible metaverse platforms—you own the asset, not a license.

Events & Access

Event Tickets & Access Passes

What It Solves: Traditional tickets suffer from scalping, counterfeiting, and loss of value post-event.

How SFTs Work Here: Each ticket category becomes a token ID:

ID 1: "General Admission Day 1" (supply: 5,000)
ID 2: "VIP Day 1" (supply: 500)
ID 3: "Backstage Pass Day 1" (supply: 50)

The SFT Lifecycle:

Pre-event: All GA Day 1 tickets (same nonce) are fungible—swap yours for any other
Check-in: Scanning updates the token's metadata to "redeemed: true"
Post-event: Applications interpret redeemed tickets as collectibles (token type unchanged, metadata changed)

Advanced Features:

Anti-Scalping: Set maximum resale price as percentage of original
Revenue Sharing: Automatically split resale profits with venue/artist
Bundled Experiences: Attach additional SFTs (meet-and-greet, merchandise credits)

Klever Tips: Use 4-second block finality for real-time gate scanning.

Whitelists & Allowlist Tickets

How SFTs Work Here:

ID 1: "Mint Pass – Phase 1" (supply: 500, max 3 NFTs each)
ID 2: "Mint Pass – Phase 2" (supply: 2,000, max 2 NFTs each)
ID 3: "Beta Tester Invitation" (supply: 100)

Mechanics:

Holding the token grants the right
Burning/redeeming exercises the right
Unused passes can be traded on secondary markets

Loyalty & Rewards

Loyalty Points & Tiered Rewards

What It Solves: Traditional loyalty programs are siloed (can't transfer airline miles to hotel points), non-transparent, and easily manipulated.

How SFTs Work Here: Each program/tier becomes a token ID:

ID 1: "Brand X – Standard Points" (fungible within tier)
ID 2: "Brand X – Gold Member Points" (2x value)
ID 3: "Brand X – Platinum Points" (5x value)

Innovative Possibilities:

Cross-Brand Exchanges: Partner with other brands for point swaps
Expiration Transparency: Encode expiry dates; users can sell before losing value
Gamified Tiers: Automatic tier upgrades based on token holdings

Multi-Class Reward & Incentive Systems

How SFTs Work Here: Unified contract with multiple point types:

ID 1: "Referral Points" (earned by bringing new users)
ID 2: "Quest Points" (earned by completing tasks)
ID 3: "Governance Points" (earned by DAO participation)
ID 4: "Purchase Points" (earned from transactions)

Advanced Mechanics:

Cross-Type Exchanges: 100 Quest Points = 50 Purchase Points
Multiplier Stacking: Hold Gold Badge? 2x all point earnings
Leaderboards: Query top holders across categories

Achievements, Badges & Reputation

How SFTs Work Here: Each achievement is a token ID:

ID 100: "Completed Python Fundamentals" (educational)
ID 101: "100 Day Streak" (engagement)
ID 102: "Community Helper – Gold" (reputation)
ID 103: "Bug Hunter – Critical" (contribution)

Everyone who earns the same achievement receives the same token ID—creating a cohort that can be queried, rewarded, or targeted.

Soulbound Considerations: Many achievements should be non-transferable. Klever's permission system can enforce canTransfer: false.

Commerce & Coupons

Coupons, Vouchers & Gift Cards

What It Solves: Paper coupons are easily counterfeited; digital codes can be shared infinitely.

How SFTs Work Here: Each promotion becomes a token ID:

ID 1: "10% OFF – Spring 2026 Campaign" (supply: 50,000)
ID 2: "$25 Gift Card – Holiday Edition" (supply: 10,000)
ID 3: "Free Item – New Customer Welcome" (supply: 5,000)

Post-Redemption Value: Once redeemed, the coupon's metadata is updated (e.g., "redeemed: true") and serves as proof-of-purchase—valuable for warranty claims or brand engagement history. The token remains an SFT; applications interpret it differently based on its state.

Klever Tips: Mark tokens as "redeemed" via attribute update (not burn) to preserve history.

Subscriptions & Time-Bound Passes

How SFTs Work Here:

ID 1: "1-Month Basic Pass" (fungible, consumable)
ID 2: "1-Month Premium Pass" (fungible, more features)
ID 3: "Annual Basic Pass" (fungible, discounted rate)
ID 4: "Lifetime Founder Pass" (limited supply, non-expiring)

Innovative Models:

Transferable Subscriptions: Sell your remaining 6 months to another user
Rental Markets: "Rent" a premium pass for 1 week at lower cost
Fractional Access: Share a family plan via tokenized seats

Phygital Goods & Product Authentication

What It Solves: Counterfeiting costs luxury brands billions annually. Physical certificates are easily forged.

How SFTs Work Here: Each product line becomes a token ID:

ID 1: "Designer Handbag – Model X, Black" (supply: 5,000)
ID 2: "Designer Handbag – Model X, Limited Gold" (supply: 50)

The physical item contains an NFC chip or QR code linked to the specific token. Scanning verifies authenticity and displays ownership history.

Applications Beyond Luxury:

Warranties: Token proves warranty validity, transfers with resale
Wine & Spirits: Provenance tracking from vineyard to glass
Sneakers: Authentication for resale market

Finance & Ownership

Limited-Edition Digital Collectibles

What It Solves: Creating 100 individual NFTs for an art edition is expensive. Editions should be fungible within the run but distinct from other editions.

How SFTs Work Here:

ID 1: "Artwork Alpha – Edition of 100" (supply: 100, all identical)
ID 2: "Artwork Alpha – Artist Proof" (supply: 10)
ID 3: "Artwork Alpha – 1/1 Original" (supply: 1)

All 100 copies of Edition 1 are interchangeable—collectors don't care which specific copy they own, only that they own one from the edition.

Klever Tips: Use royalties aggressively (10-15%) since collectors expect creator compensation.

Real-World Asset Units (Fractional Ownership)

What It Solves: High-value assets (real estate, art, commodities) are inaccessible to small investors.

How SFTs Work Here: Each asset becomes a token ID with supply representing ownership units:

ID 1: "123 Main St – Residential Property" (supply: 1,000 shares)
ID 2: "Gold Bar #GLD-2025-001" (supply: 100 grams)
ID 3: "Picasso Print – 'Le Rêve'" (supply: 100 shares)

All shares of ID 1 are fungible—you can swap your 5% for anyone else's 5%. But ID 1 is non-fungible against ID 2.

Legal Considerations: Tokens typically represent ownership in a legal entity (LLC/SPV), not direct property title. Requires securities compliance.

Tiered Crowdfunding / Fundraising Perks

How SFTs Work Here:

ID 1: "Bronze Backer" (supply: 1,000, basic rewards)
ID 2: "Silver Backer" (supply: 500, enhanced rewards)
ID 3: "Gold Backer" (supply: 100, premium rewards)
ID 4: "Founding Patron" (supply: 10, exclusive access)

Beyond Initial Funding:

Ongoing Perks: Gold Backers get perpetual discounts
Governance Rights: Higher tiers have more DAO votes
Upgrade Paths: Trade 3 Bronze for 1 Silver

Intellectual Property & Royalty Rights

How SFTs Work Here: Fractional royalty ownership:

ID 1: "Song X – Master Recording Rights" (supply: 1,000 shares)
ID 2: "Song X – Publishing Rights" (supply: 1,000 shares)

Holding 10 shares of ID 1 entitles you to 1% of master recording royalties.

DAO Governance & Voting Rights

How SFTs Work Here: Multiple governance token classes:

ID 1: "Standard Voting Token" (1 token = 1 vote)
ID 2: "Council Seat" (supply: 7, enhanced voting power)
ID 3: "Proposal Creation Right" (supply: 100)
ID 4: "Veto Power Token" (supply: 3, emergency use only)

Advanced Governance:

Time-Weighted Voting: Longer holders get multiplied votes
Delegation: Transfer voting power without transferring tokens
Quadratic Voting: Implemented via smart contract logic

Insurance & Risk Tokenization

How SFTs Work Here:

ID 1: "Flight Delay Insurance – Route NYC-LAX" (parametric)
ID 2: "Crop Insurance – Corn, Iowa 2025" (agricultural)
ID 3: "DeFi Protocol Coverage – Lending Pool X" (crypto-native)

Parametric Model:

User purchases insurance SFT (pays premium)
Oracle monitors trigger conditions
If triggered, smart contract automatically pays out
No claims process, no human approval needed

Supply Chain & Enterprise

Batch-Based Supply Chain Tokens

What It Solves: Supply chain tracking relies on paper certificates and centralized databases—easily falsified, impossible to verify independently.

How SFTs Work Here: Each production batch becomes a token ID:

ID 2025-A-001: "Coffee Beans – Batch A, January 2025" (supply: 10,000 kg)
ID 2025-A-002: "Coffee Beans – Batch B, January 2025" (supply: 8,500 kg)

All units within Batch A are fungible (any 1kg is equivalent), but Batch A is distinct from Batch B (different harvest dates, quality scores).

Applications:

Food & Beverage: Wine vintages, olive oil harvests, specialty coffee
Pharmaceuticals: Drug batches with expiration and recall capability
Luxury Goods: Leather lots, gemstone parcels
Agriculture: Grain lots, livestock cohorts

Healthcare Records & Credentials

How SFTs Work Here:

ID 1: "COVID-19 Vaccination Record" (patient-specific)
ID 2: "Board Certification – Cardiology" (physician credential)
ID 3: "Medical License – State of California" (provider credential)

Privacy Considerations:

Store hashes, not raw personal data
Use zero-knowledge proofs for verification
Patient controls access via token permissions

Carbon Credits & Environmental Assets

What It Solves: Carbon credit markets are opaque, prone to double-counting, and inaccessible to small participants.

How SFTs Work Here: Each verified carbon project becomes a token ID:

ID 1: "Amazon Reforestation Project 2025" (supply: 100,000 tonnes)
ID 2: "Solar Farm Kenya – Credits 2025" (supply: 50,000 tonnes)

All credits from the same project are fungible, but different projects are non-fungible (different verification standards, locations).

Market Mechanics:

Retirement: Burning a credit permanently removes it from circulation
Fractional: Own 0.5 tonnes for personal offsetting

Summary

SFTs shine when you need:

Multiple asset types in one collection - Gaming, loyalty, governance
Edition-based scarcity - Collectibles, tickets, credentials
Metadata-driven state changes - Pre-event to post-event, unused to redeemed
Batch efficiency - Supply chain, bulk distributions
Fractional ownership - Real estate, IP rights, carbon credits
Both "which type" and "how many" - Track nonce + balance together

Semi-Fungible Tokens Overview
Token Comparison
Application Guide - Build your own SFT application