Some minor formatting changes and a better explanation of the split ID bits strategy.

EIPS/eip-1155.md

@@ -652,25 +652,37 @@ ERC-1155 contracts must therefore carefully emit `TransferSingle` or `TransferBa
 
 ### Non-Fungible Tokens
 
-The following strategy is an example of how to mix fungible and non-fungible tokens together in the same contract. The top 128 bits of the uint256 `_id` parameter in any ERC-1155 function could represent the base token ID, while the bottom 128 bits might be used for any extra data passed to the contract.
+The following strategies are examples of how you MAY mix fungible and non-fungible tokens together in the same contract. The standard does NOT mandate how an implementation must do this. 
 
-Non-fungible tokens can be interacted with using an index based accessor into the contract/token data set. Therefore to access a particular token set within a mixed data contract and particular NFT within that set, `_id` could be passed as `<uint128: base token id><uint128: index of NFT>`.
+##### Split ID bits
 
-Inside the contract code the two pieces of data needed to access the individual NFT can be extracted with uint128(~0) and the same mask shifted by 128.
+The top 128 bits of the uint256 `_id` parameter in any ERC-1155 function MAY represent the base token ID, while the bottom 128 bits MAY represent the index of the non-fungible to make it unique.
 
-### Example of split ID bits
+Non-fungible tokens can be interacted with using an index based accessor into the contract/token data set. Therefore to access a particular token set within a mixed data contract and a particular non-fungible within that set, `_id` could be passed as `<uint128: base token id><uint128: index of non-fungible>`.
+
+To identify a non-fungible set/category as a whole (or a fungible) you COULD just pass in the base id via the `_id` argument as `<uint128: base token id><uint128: zero>`. If your implementation uses this technique this naturally means the index of a non-fungible SHOULD be 1-based.
+
+Inside the contract code the two pieces of data needed to access the individual non-fungible can be extracted with uint128(~0) and the same mask shifted by 128.
 
 ```solidity
-uint256 baseToken = 12345 << 128;
-uint128 index = 50;
+uint256 baseTokenNFT = 12345 << 128;
+uint128 indexNFT = 50;
+
+uint256 baseTokenFT = 54321 << 128;
 
-balanceOf(baseToken, msg.sender); // Get balance of the base token
-balanceOf(baseToken + index, msg.sender); // Get balance of the non-fungible token index
+balanceOf(baseTokenNFT, msg.sender); // Get balance of the base token for non-fungible set 12345 (this MAY be used to get balance of the user for all of this token set if the implementation wishes as a convenience).
+balanceOf(baseTokenNFT + indexNFT, msg.sender); // Get balance of the token at index 50 for non-fungible set 12345 (should be 1 if user owns the individual non-fungible token or 0 if they do not).
+balanceOf(baseTokenFT, msg.sender); // Get balance of the fungible base token 54321.
 ```
 
-### Natural Non-Fungible tokens
+Note that 128 is an arbitrary number, an implementation MAY choose how they would like this split to occur as suitable for their use case. An observer of the contract would simply see events showing balance transfers and mints happening and MAY track the balances using that information alone.
+For an observer to be able to determine type (non-fungible or fungible) from an ID alone they would have to know the split ID bits format on a implementation by implementation basis.
+
+The [ERC-1155 Reference Implementation](https://github.com/enjin/erc-1155) is an example of the split ID bits strategy.
+
+##### Natural Non-Fungible tokens
 
-Another simple way to represent NFTs is to allow a maximum value of 1 for each non-fungible token. This would naturally mirror the real world, where unique items have a quantity of 1, and fungible items have a quantity greater than 1.
+Another simple way to represent non-fungibles is to allow a maximum value of 1 for each non-fungible token. This would naturally mirror the real world, where unique items have a quantity of 1 and fungible items have a quantity greater than 1.
 
 ## References