6.0 Smart AI Core Mechanics and Platform Features

6.1 AI Interactive NFTs - Intelligent Interaction and Self-Evolution

On the platform, NFTs are no longer just static digital artworks, but intelligent digital assets that can "learn" and "grow." Users can "train" their NFTs by inputting personalized data, allowing them to gradually develop specific styles and skills. The following detailed example explains this gameplay:

1. Intelligent Interaction - How to "Train" Your NFT?

① Personalized Data Input

Users can provide various forms of personalized data to their NFTs, such as:

Text Descriptions:

Write down the style, characteristics, or background story you want your NFT to have. For example: "I hope this NFT looks futuristic with a touch of retro style."

Images or Artworks:

Upload artwork or color combinations you like, allowing the system to learn these visual styles.

Sound or Video Clips:

If you want your NFT to mimic certain voice styles or dynamic effects, you can upload relevant materials.

② AI Model Training

The platform's built-in AI models will read the data you provide, similar to training a virtual pet. The models analyze this data, understand the style and skills you want, and then "teach" the NFT how to embody these characteristics in its image, animation, or even behavior.

Style Transfer: For example, the system can incorporate your artistic style into the NFT's appearance through style transfer technology.

Dynamic Behavior: If voice or video materials are inputted, the NFT may also acquire corresponding dynamic effects or voice styles, becoming more vivid and interactive.

2. Self-Evolution - Real-time Feedback and Evolution

The training process is interactive and dynamic. Users can preview changes to their NFT in real-time during the training process:

Interactive Adjustment: If you're not satisfied with a certain change in your NFT, you can continue to provide more data or adjust descriptions, allowing the AI model to continuously optimize until the desired effect is achieved.

Long-term Evolution: Over time, NFTs will continuously "evolve" based on users' ongoing interactions and data feedback, gradually developing unique personalities and skills.

Conversation Capabilities: NFTs can achieve real-time conversations with users by integrating natural language processing and generative AI models. For instance, users can ask questions, communicate, or issue commands to their NFTs, and the NFTs will respond and interact like virtual assistants, enhancing the user experience.

Task Interaction Capabilities: Users can set tasks or challenges for their NFTs, such as participating in game missions, completing specific interactions, or even participating in community activities. The NFT responds according to task requirements and may receive rewards or unlock new abilities after completing tasks, similar to a character in an interactive game where user participation directly influences the NFT's behavior and functionality.

Self-Evolution Capabilities: By continuously collecting user input and interaction data, AI models can "train" NFTs, allowing them to gradually improve and update their appearance, behavior, or skills. This means that with time and continued interaction, NFTs will "evolve" into more personalized digital assets that better meet user needs, much like a virtual pet becoming smarter with care and training.

Multiple Role Functions:

a. Virtual Assistant: Providing information queries, reminders, and service support for users in daily life;

b. Game Character: Participating in competitions, missions, or adventures as a player's companion or opponent in games;

c. Digital Identity: Serving as a user's digital identity proof in the Web3 ecosystem, showcasing unique personality and reputation.

3. Why Can This Gameplay Attract More Users?

Easy to Understand: Just like raising a virtual pet, users can "cultivate" unique digital assets through simple data input. Even new users unfamiliar with NFTs can quickly experience this interactive fun.

Personalized Customization: Each user's input data is unique, making the trained NFT also unique, increasing the appeal for collection and trading.

Dynamic Value: Traditional NFTs remain static, while AI-trained NFTs can continuously evolve. As interactions and task completions increase, their market and collection value also gradually increase.

Cross-domain Applications: Trained NFTs are not only suitable for art collections but can also play roles in virtual social interactions, game interactions, and even as digital identities and financial tools, greatly expanding the application scenarios of NFTs.

6.2 Competition and Task Systems

The NFT competition and task systems are one of the core gameplay mechanics designed by Smart AI to empower NFTs, enhance their interactivity, and increase their long-term appreciation potential. This system transforms NFTs into dynamic digital assets with competitive and task-based functionalities. Through competitive battles and task challenges, it not only enhances user engagement but also endows NFTs with practical and social value. The following details various aspects of this gameplay:

1. NFT Competition System

The NFT competition system resembles a virtual arena where users can place their AI-trained NFTs with specific skills and attributes to engage in real-time battles. Competitive battles not only test the NFT's "combat power" (ability values obtained after AI model training) but also score in real-time based on the NFT's historical performance, interaction records, and user-customized strategies.

Core Gameplay

① Competitive Battles:

- Matching Mechanism: The system automatically matches opponents based on the NFT's capability parameters (such as attack, defense, speed, etc.) and user-defined battle strategies, ensuring fair competition.

- Real-time Battles: During battles, NFTs can automatically make decisions through pre-set behavior models, such as launching attacks, defending, or using special skills.

- Spectating and Live Streaming: Battle processes support real-time streaming, allowing users to watch competitive matches and even participate in predictions and interactions, enhancing the social experience.

② Reward Mechanism:

- Battle winners can receive Token rewards as well as potentially limited edition or upgraded NFT rewards.

- The system features leaderboards and competitive points; NFTs and their users ranking at the top will receive additional Token dividends and platform governance rights.

③ Capability Enhancement:

- Arena battle results are fed back to the NFT; through a data-driven "learning" process, the NFT's skills and attributes can gradually improve during battles, forming a self-evolution mechanism.

2. Task System

The task system is designed as a series of interactive challenges aimed at encouraging users to participate in platform ecosystem building and further activating the dynamic value of NFTs. Tasks are divided into three main categories: daily tasks, periodic challenges, and special events, each with clear objectives and reward mechanisms.

Core Gameplay

Daily Tasks:

- Task content covers simple activities such as daily check-ins, NFT interactions, participation in community discussions, watching live streams, etc., helping new users familiarize themselves with the platform while accumulating small Token rewards.

- After completing daily tasks, users can receive Token rewards to exchange for special items or upgrade NFT capabilities.

Periodic Challenges:

- Weekly or monthly themed tasks, such as "Best NFT Battle" or "Most Creative NFT Training Plan," encourage users to showcase personalized NFTs and their growth trajectories.

- Users who successfully complete challenges not only receive substantial Token rewards but may also obtain limited edition NFTs or exclusive interaction rights.

Special Events:

- The platform regularly hosts large-scale events such as NFT competitive tournaments, virtual exhibitions, cross-chain leagues, etc., attracting global users through special tasks and challenges.

- These events are typically accompanied by high-value rewards, media exposure, and partner brand support, bringing more traffic and ecosystem expansion opportunities to the platform.

Task Feedback and Upgrades:

- After completing tasks, the platform records data on the NFT's performance as an important reference for NFT evolution, further influencing the NFT's capabilities and market value.

- Users can continuously unlock new skills and special effects for their NFTs by completing more high-difficulty tasks, forming a continuous upgrade incentive loop.

3. User Value and Ecosystem Effects

User Value

- Interactive Experience: Through competition and task systems, users not only enjoy the interactive fun of NFTs but also experience the sense of achievement from participating in competitions and unlocking achievements.

- Asset Appreciation: Participating in competitive battles and task challenges helps enhance the NFT's capabilities and scarcity, increasing its trading value in the secondary market.

- Economic Incentives: Task and competition rewards bring Token income to users, forming long-term economic returns for participation, attracting more users to remain active on the platform.

Ecosystem Effects

- Promoting User Growth: Through diversified tasks and competitive gameplay, the platform attracts users from different backgrounds (including NFT investors, gaming enthusiasts, and digital art creators), forming a diverse user base.

- Enhancing Community Participation: The task system and competitive tournaments stimulate autonomous user participation and community interaction, enhancing platform stickiness.

- Increasing Platform Value: As users continue to participate and NFTs evolve, the overall ecosystem value of the platform continuously increases, creating more business opportunities and growth dividends for investors and partners.

6.3 NFT Marketplace

Building on the foundation of AI Interactive NFTs and the competition and task systems, the NFT marketplace is the core of the platform's economic system, ensuring the circulation and value growth of NFT assets. Below are detailed marketplace functions, rules, mechanisms, and user experience descriptions.

1. Core Marketplace Functions

Function	Description	User Value
NFT Listing	Users can list NFTs at fixed prices, auctions, or in liquidity pools	Enables NFTs to enter the market, increasing liquidity
NFT Purchase	Users can directly purchase or bid on NFTs	Allows users to acquire desired NFTs at appropriate prices
Smart Valuation	AI provides reasonable pricing based on market data, historical transactions, and interaction metrics	Helps users understand the market value of NFTs
P2P Trading	Users can conduct peer-to-peer NFT trades, bypassing marketplace fees	Increases trading freedom
Batch Buying/Selling	Buying or selling multiple NFTs in a single transaction to improve efficiency	Reduces costs for large-volume transactions
NFT Collateralization	Users can stake NFTs to obtain liquidity funds, with the option to redeem at any time	Provides additional monetization methods for NFTs
NFT Rental	Allows users to rent NFTs for specific purposes (such as gaming, social interactions)	Makes NFT assets more practical

2. NFT Trading Models

Fixed Price Trading (Buy It Now):

- Sellers set a fixed price, buyers directly pay with SAT to purchase the NFT, and the transaction completes instantly.

Auction Model:

- Sellers set a starting price + auction duration, and the highest bidder wins the NFT.

- Special feature: If a new bid is placed within the last 5 minutes of the auction, the time is automatically extended by 5 minutes, preventing "auction sniping."

Liquidity Pools (AMM Trading):

- Similar to the AMM mechanism of decentralized exchanges (DEX), NFTs are deposited into liquidity pools, and buyers purchase according to pricing curves.

- Advantage: Improves liquidity, users don't need to wait for buyers, and can sell at any time.

NFT Rental (NFTFi):

- Rental process: Users pay SAT to rent NFTs, which are automatically returned after a certain period.

- Use cases: Rent high-level NFT characters for competitions, rent high-yield NFTs for staking

NFT Staking Trading:

- Users can stake NFTs to obtain Token liquidity. The NFT remains owned by the user but must be unstaked before trading.

- Special rewards: Holders of high-value NFTs can receive additional SAT airdrops from the platform.

AI Smart Valuation System (NFT Pricing Mechanism):

- To address the issues of high price volatility and lack of standards in NFT trading markets, the platform introduces an AI valuation system that calculates NFT prices through the following data:

Valuation Dimension	Description
Historical Transaction Data	References past transaction prices and number of bids for the NFT
Market Supply and Demand	Analyzes market circulation volume and trading activity of similar NFTs
Interaction Data	Evaluates the NFT’s active performance in task systems and competition systems
Social Influence	Considers the on-chain credit score of the NFT holder and the NFT’s propagation rate

Core Functions of AI Valuation:

- Prevent price manipulation (preventing malicious price inflation or suppression)

- Provide basis for buying and selling decisions (helping users set reasonable prices)

- Adjust market liquidity (optimizing NFT trading depth based on supply and demand)

Economic Incentive Mechanisms for the Marketplace:

Mechanism	Description	User Benefits
Trading Mining	For each NFT transaction, users can receive SAT rewards (e.g., 0.5% of the transaction amount)	Encourages users to trade, increasing market activity
Referral Rewards	When inviting new users to purchase NFTs, users can receive 1% SAT commission	Increases user viral promotion
Liquidity Rewards	Providing NFTs to liquidity pools earns 0.3% of transaction fees	Encourages NFT holders to increase market depth
NFT Staking Mining	Staking NFTs can earn additional SAT income	Adds extra value to NFT assets
Task System Integration	Trading NFTs can unlock specific tasks, completing them earns Tokens	Makes NFT trading more interactive

Decentralized Governance of the Trading Marketplace:

To ensure fairness and transparency in the NFT marketplace, the platform adopts a DAO governance model where community members holding governance Tokens can vote on:

- Transaction fee adjustments (default 2%, DEP ecosystem users can reduce to 1%)

- NFT listing rules (e.g., whether AI-generated NFTs require review)

- Recommended NFT mechanisms (how quality NFTs can gain more exposure)

- Blacklist management (preventing malicious trading and false pricing behaviors)

6.4 DAO Governance and Credit System Solution

By introducing decentralized governance and an on-chain credit scoring system, the platform achieves fair distribution of governance rights and incentives for ecosystem participation. The DAO mechanism ensures that all core decisions are transparent, while the credit scoring system dynamically adjusts governance and economic weight based on users' actual behavior. This not only enhances the effectiveness and security of platform governance but also encourages users to continuously participate in ecosystem building, forming a spontaneous, healthy, and sustainably developing Web3 digital asset ecosystem. This integration of governance and credit systems is one of the platform's key competitive advantages over traditional NFT platforms, providing investors and users with long-term, stable return expectations and participation confidence.

Goals and Significance:

Enhance Platform Transparency and Fairness:

Through decentralized governance, all core participants (users, developers, investors) can participate in platform decision-making, avoiding excessive concentration of power.

Incentivize Quality Ecosystem Participation:

Combined with on-chain credit scoring, incentivize users with high activity and contribution to gain more governance rights and economic rewards, thereby promoting community self-management and long-term stable development.

Strengthen User Trust:

The transparent governance process and credit scoring system help users develop trust in the platform's decision-making process and inspire continued participation in ecosystem building.

DAO Governance System:

1. Mechanism Design

- Governance Token: The platform uses Token as a governance token. The amount of Token held by users directly affects their voting weight, but an on-chain credit score is also introduced to adjust voting rights, ensuring that governance is not dominated solely by users holding large amounts of tokens.

- Governance Proposals and Voting: All key decisions (such as product iterations, fee adjustments, ecosystem incentive plans, etc.) are made through the DAO mechanism. Users can submit proposals, and after community discussion, voting is executed through smart contracts, ensuring that results are transparent and tamper-proof.

- Multi-signature and Layered Governance: Some major matters adopt a multi-signature mechanism, jointly confirmed by core users, technical experts, and the DAO committee, preventing abuse of power by a single group. At the same time, governance rights are stratified according to user credit scores, with high-credit users having higher weight in decision-making.

2. Implementation Steps

① Phase One: Basic Governance Platform Launch

- Deploy basic DAO smart contracts supporting proposal submission, voting, and dividend mechanisms.

- Initially open governance permissions to early users, core developers, and ecosystem partners for decision-making.

② Phase Two: Credit Weight Integration

- Introduce on-chain credit scoring modules, collecting data on user transactions, interactions, task completion, staking, etc., to calculate each user's credit score.

- Combine credit scores with governance tokens to adjust voting weights, allowing high-credit users to have greater influence in decision-making.

③ Phase Three: Full Decentralized Governance

- As the community scales, gradually open governance rights to all users, achieving completely decentralized platform decision-making.

- Regularly optimize and adjust the governance mechanism through DAO proposals, ensuring the governance system upgrades synchronously with ecosystem development.

On-chain Credit Scoring System:

1. Scoring Basis

- Transaction History: Including NFT transaction frequency, transaction amount, holding duration, and other data, reflecting user activity and stability in the market.

- Interaction Records: Recording user interaction behaviors on the platform (such as participating in tasks, training NFTs, engaging in competitive battles, etc.), measuring user contributions to the ecosystem.

- Staking and Promotion Activities: User participation in staking, referral, and promotion activities will also be incorporated into the scoring system, encouraging long-term token holding and active promotion.

- Community Governance Participation: User voting, proposal, and discussion participation in the DAO, reflecting their contribution and influence on platform governance.

2. Scoring Mechanism

- Data Collection and Analysis: Real-time recording of user on-chain behaviors through smart contracts and backend databases, with data cleaning and standardization using machine learning algorithms.

- Scoring Model: Combining deep learning and multidimensional data analysis to build a user credit scoring model, converting various indicators into a credit score ranging from 0 to 1000.

- Dynamic Updates: Credit scores are updated in real-time, automatically adjusting with changes in user behavior, reflecting the user's current activity level and contribution value.

3. Application Scenarios

- Governance Voting Weight: A user's credit score combined with their governance tokens determines their final voting weight, ensuring high-credit users have greater influence in decision-making.

- Transaction Fee Discounts: High-credit users enjoy lower fees in NFT transactions and priority participation in specific activities, incentivizing users to continuously improve their credit scores.

- Reward Distribution: Users with high credit scores receive more Token dividends in ecosystem incentives and task rewards, forming a positive incentive loop.

To enhance user activity and attractiveness of the Smart AI platform, the following is a detailed promotion task and incentive mechanism plan, aimed at encouraging user participation and contribution to the platform ecosystem.