Hybrid Token Model

NATs can serve as dual-purpose token wrappers for non-fungible and fungible token genesis

Introducing Hybrid Tokens

NATs represent the first implementation of a Hybrid Token. A Hybrid Token is a non-fungible inscription that can be treated to represent a numeric count of fungible assets. You can treat mint inscriptions as a Unique Non-Arbitrary Token (UNAT).

Example

The following inscription could represent 10 units of the "satoshi" NAT

{ 

 "p": "tap",

 "op": "dmt-mint",

 "tick": "satoshi",

 "blk": "1"

}

Whereas the following inscription could represent 1,000 units of the "satoshi" NAT

{ 

 "p": "tap",

 "op": "dmt-mint",

 "tick": "satoshi",

 "blk": "2"

}

Minting block 1 versus block 2 are 2 unique non-fungible inscriptions (UNATs) accounting for separate units of account of the underlying fungible "satoshi" NAT.

Implication

The underlying implication is that a market can form around the non-fungible aspect of these mint inscriptions alongside the market around the fungible "satoshi" NAT. As of the deployment of Natcats, the Unique Non-Arbitrary Token (UNAT) extension to the NAT deployment format has been implemented, marking the beginning of associating non-arbitrary data to a non-fungible DMT mint.

What are UNATs?

When generating a NAT, the deployer can incorporate a data reference source that gives individual NAT mints unique properties that cover a wide spectrum of functionality. This is similar to how non-fungible tokens can be leveraged to create unique own-able digital collectibles. This makes a DMT mint inscription into UNIQUE content on chain. The Unique Non-Arbitrary Tokens (UNAT) generated through the DMT framework can now serve the purpose of non-fungibility but also share the novel token property of non-arbitrary supply rooted in pattern existence sourced through block data using the element registry.