Everything you want to know about ERC404 and Pandora is here!
Interview & Editing: Karen, Foresight News
The ERC404 token standard is considered a paradigm innovation for NFTs. In yesterday’s post “ ERC404 Behind Pandora’s Surge, What Chances Are There? 》In this article, we introduced the background, introduction and potential opportunities of Pandora and ERC404 standards, which have attracted much attention this month.
Today, Foresight News interviewed a core member of the Pandora team to further discuss the reasons why ERC404 is named 404, Pandora’s economic model, future plans, and the areas in which ERC404 has potential.
Question: Are Pandora and ERC404 the same team? How many people are there in the team?
Pandora and ERC404 are from the same team. Our team is growing every day, and the core team consists of 4 people including myself, Acme, and Searn. Many programmers have also volunteered to join us to build and improve the code. The ERC404 V1 code was independently completed by @0xacme (Acme), a former software engineer at Coinbase, and the team is currently improving it.
Question: What inspired you to do this project? Do you have any stories behind it that you can share?
This is a rather dramatic story. In short, a previous project called Emerald, Rug, claimed to have similar functionality. We thought the concept had great potential, so we invested a lot of money, but it turned out to be a big price to pay. After digging deeper, we gradually discovered that the project was not only full of loopholes in the contract design, but also had many problems in implementation. We tried to explain our vision to the developer, hoping that he could improve the project, but unfortunately, he failed to understand our expectations and did not take any remedial measures. We didn't want our idea to go to waste, so we implemented it ourselves.
Question: Why is ERC404 named after the number 404?
404 is a common error message that means "Not Found" on an application or website. We think 404 is very appropriate because the whole project is very experimental. ERC404 mixes the functionality of ERC721 and ERC20.
Question: For the team, would you prefer to define Pandora as an NFT or a Token?
We treat these two parts as two separate parts of a whole and call them SFTs. If you forced me to choose one, maybe I would say NFT. But technically speaking, they are "semi-fungible tokens."
Question: What key problems can ERC404 solve? What new imagination space can it bring to the NFT market or the entire crypto market?
There are many, the most obvious being native liquidity and fragmentation of NFTs.
Question: What other innovations and gameplay can ERC404 bring about?
There are many use cases, but we are particularly optimistic about its potential in the gaming sector. Ticketing is also an area with great potential.
Question: Regarding the so-called "solving the pain point of NFT liquidity", some fragmented protocols such as NFTFi have made many attempts before, but all of them ended in failure. What is the root cause of failure? What is the qualitative difference of the new solution proposed by ERC404?
At its root, these solutions often have problems such as excessive friction and complex operations, resulting in poor user experience. More importantly, these solutions usually require the original NFT to be encapsulated, which naturally arouses collectors' disgust and limits the widespread adoption of these solutions. In contrast, ERC404 has these features by default and does not rely on confusing third-party protocols and solutions.
Question: What help can the new protocol provide for those NFT projects that have already fallen a lot?
Honestly, the reality is that too much focus on immutability is one of the challenges facing blockchain technology. New projects benefit from new technologies, while older projects often become stagnant or disappear due to poor implementation. From a realistic perspective, if we encapsulate the old ERC721 collections, they will face the same adoption issues we outlined above. We believe that for the foreseeable future, the focus will be on new ERC404 projects, which will benefit the most from this innovation.
Question: Can you explain Pandora's destruction mechanism in detail? If a person buys 0.1 Pandora tokens, how will the corresponding NFT be destroyed and transferred?
If someone buys 0.1 tokens, no transfer will occur. If the wallet has a balance of more than 1 token, an NFT will be minted to their wallet. If tokens are transferred from another user's wallet, the NFT will also be transferred.
Question: At what price did Pandora initially launch its album?
After the team injected liquidity into the pool, Pandora’s initial price was around $200.
Question: What is Pandora’s economic model?
There are 10,000 in total, and currently, only 7% has been allocated to the team and early contributors. The rest of the supply held by the team is mostly unallocated and can be used to inject additional liquidity to meet demand. It is expected that some will be made available to our market makers and exchanges interested in integrating ERC404, many of which have already contacted us.
Question: The Pandora team bought 5,000 coins from the market at the beginning of the launch. How will they be distributed later?
We plan to carefully limit the circulating supply to match the scale of adoption. This is another unique possibility brought by ERC404. Usually, projects have to limit their supply at launch to ensure that if they don't have a large community of users, they can mint them all. If they grow and become larger, the supply can no longer be changed. With ERC404, the team can simply reserve tokens to meet demand and expand, from a 3000 supply set to 10,000 or even more.
Question: In your opinion, what will ERC404 look like in the future?
I believe that once we submit a formal EIP, ERC404 will soon be accepted by more projects and protocols and built on top of it. These projects and protocols will be used for a variety of novel and practical use cases.
Question: What do you want to achieve in the future? Can you share what is in your plan?
There are a lot of plans, and we know how to seize opportunities. Our biggest goal at the moment is to build DApps and tools at the protocol level, support ERC404, and use these products to create value for Pandora holders.
Question: What other opportunities are there for ordinary users?
Like all technology, I think regular users can enjoy the benefits and improved user experience that developers and creators provide as a result of this new token standard. After all, liquidity and fragmentation benefit regular users more than anyone else in the ecosystem. That’s equality.