I've been wanting to do this kind of font for ages, think of it as a soft square or a hard circle. Since it's been so long, I can't really remember the exact source of inspiration, but I do remember it had something to do with kix and his work.
The ability to kern now has obviously made the spacing better than it would have been otherwise. Thanks, Rob.
The design was inspired by Josef Albers Kombinationschrift alphabet. A modular typeface built using a limited number of basic shapes. Need a condensed stencil typeface? Look no further! Little Tittle was created for those tight spaces. A condensed set width paired with short ascending and descending strokes allows for tight spacing vertically as well. Little Tittle is exclusively lowercase; however, it does have a stencil and solid version so you can mix and match styles for more typographic variety.
An old updated idea: overlapping glyphs, and 3D simulation with colours. See also zupra eYe/FS.