Dynamic Digital Assets (DDAs) on the Avenge blockchain are implemented as a hybrid token standard that integrates fungible, non-fungible, and composable properties within a resource-oriented framework, optimized for gaming in AZTEQ Metaverse. Built on the Avenge Virtual Machine (AVM), DDAs leverage WebAssembly compilation for execution, allowing assets to be nested with unlimited depth. This structure enables an asset like an Azimal in Life to hold child tokens (e.g., traits or equipment), represented as

$D = (ID, Type, Children)$

where Children is a set

$C = \{(ChildID, Quantity, Properties)\}$

facilitating hierarchical ownership without separate contracts. Creation of DDAs occurs through smart contracts written in Avenge Assembler, which enforces linear types for resource safety—ensuring assets can't be duplicated or lost. A DDA mint transaction allocates a Data Keeping Unit (DKU) of 512kb, costing 1 AZTEQ, to store metadata. For example, a guaranteed DDA (immutable core) might store base breed data in ROM, while persistent or volatile types allow RAM updates for traits like agility in districts such as Mocinno. The equation for storage allocation is

$Size = base + n \cdot 512kb$

where n is the number of linked DKUs for larger composites. Merging and unmerging are core operations, handled by the token management system. Merging two compatible DDAs

$D_1$

and

$D_2$

results in

$D_m = D_1 \oplus D_2$

aggregating quantities and properties via union rules, with conflicts resolved by precedence (e.g., immutable over mutable). This is executed in parallel by Avenge Web Validators (AWVs) using WebGPU shaders, reducing latency to sub-second finality through the Avenge Byzantine Frustum (ABF) consensus, which requires 2/3 validator agreement in phases: pre-prepare, prepare, commit. The Avenge Game State (AGS) timestamps DDA updates cryptographically, creating a verifiable sequence

$S_t = H(S_{t-1} || Tx)$

where H is a quantum-resistant hash, ensuring immutability for gaming provenance. Volatile DDAs, suitable for temporary items in Xolo arcs, can self-destruct after lifecycle expiry, while persistent ones support upgrades via executable DKUs running code for behaviors like trait evolution in Pokeverse battles. Interoperability with ARC-20 (fungible) and ARC-721 (non-fungible) tokens allows DDAs to wrap standards, enabling seamless integration. For instance, an ARC-721 Azimal NFT becomes a DDA child via mapping, inheriting mutable layers for gameplay. Propagation across the network uses AWVs and lightweight Avenge Tribe Validators (ATVs) for rapid dissemination, with sharding dividing state into manageable shards processed in parallel, achieving 97K TPS. Storage in DKUs supports folder-like linking for hierarchical files, where a parent DKU references children as

$Parent \to \{Child_1, Child_2, \dots\}$

ideal for composite assets in venues like the Great Academy. Executable DKUs embed scripts for autonomous logic, such as auto-updating a Life Title's yield based on visitor count, integrated with Infinity SDK for external calls. Validation with dual-layers ensure security: AWVs perform heavy checks with WebGPU parallelism, while ATVs provide supplementary script-based verification, flagging discrepancies in the Avenge Pool before block inclusion. This mitigates attacks, with optimistic concurrency allowing cross-shard transactions without locks, formalized as

$Commit = Verify(Shard_i \cap Shard_j)$

In AZTEQ Metaverse, DDA implementation on Avenge transforms static assets into dynamic entities, enabling real-time evolution in Life while maintaining scalability and security. This architecture supports intricate gaming mechanics, from merging rewards in Alderaan to layered customizations in Virtua, all processed efficiently for immersive play.