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This SIP proposes BTNFT (Bitcoin Token Non-Fungible), an extension to the existing BTKN protocol that enables native NFT functionality on the Spark Bitcoin Layer 2 network. BTNFT extends the proven TTXO (Token Transaction Output) model and existing BTKN infrastructure to support NFT collections, individual token minting, and instant transfers while maintaining full compatibility with Spark's statechain and FROST signing mechanisms. By building on Spark's battle-tested infrastructure rather than creating a separate protocol, BTNFT provides Lightning-compatible NFTs with sub-second transfers, near-zero fees, and Bitcoin's security guarantees while preserving self-custody principles.

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