What Is ERC-404? The Experimental ‘Semi-Fungible’ Ethereum Token Standard
The experimental ERC-404 token standard combines elements of fungible and non-fungible tokens into a single "semi-fungible" digital asset.

Established token standards for Ethereum include fungible ERC-20 tokens and non-fungible ERC-721 tokens (NFTs). Now an experimental and unofficial new token standard, ERC-404, aims to combine elements of both into a single "semi-fungible" digital asset.
What is ERC-404?
ERC-404 is a new token standard for digital assets on the Ethereum blockchain developed by pseudonymous creators "ctrl" and "Acme."
Token standards are formal sets of rules and protocols that determine the behavior of tokens on blockchain networks such as Ethereum.
The ERC-404 token standard combines features of ERC-20 and ERC-721, enabling the creation of "semi-fungible" tokens that employ features from fungible and non-fungible tokens.
How does ERC-404 work?
NFTs are non-fungible, meaning that they are unique and indivisible; you can't own fractions of an NFT.
ERC-404 circumvents this limitation by using token mint and burn mechanics to enable fractional transfers of an NFT.
Issued tokens are linked to an NFT. If you buy a full token, the linked NFT is minted to your wallet. If you sell a fraction of the token, the linked NFT is burned. If a wallet holding fractions of a token purchases enough fractions to hold a complete token, a new NFT is minted automatically.
What's so special about it?
The ERC-404 token standard enables native fractionalization of NFTs, creating new primitives and new mechanics built atop them. This, in turn, allows for experimentation with NFTs and the trading of them.
The token standard's creators suggest that the goal is to create an NFT with "native fractionalization, liquidity and encourages some aspects of trading/engagement to farm unique trait sets."
The team behind Pandora, a project using ERC-404, claims that it effectively enables NFTs built using the standard to "effectively have a token price that reflects a floor price in real-time" because it allows for "actual native liquidity." Rather than needing a single counterparty to buy their NFT, holders of ERC-404 tokens can sell at a time of their choosing if there's a liquidity pool.
Furthermore, instead of having to lock up or wrap NFTs and issue shares against them, fractionalization of NFTs can be achieved natively without relying on third-party protocols and solutions.
Another possible use case suggested by the Pandora team is gaming NFTs that incorporate randomization into the destroying and reminting of NFTs.
ERC-404 projects
Pandora: Pandora is one of the first projects to employ the ERC-404 token standard. It comprises 10,000 PANDORA ERC-20 tokens and 10,000 linked "Replicant" NFTs. A Replicant NFT is minted to your wallet if you purchase a PANDORA token on an exchange.DeFrogs: DeFrogs is a collection of 10,000 Pepe the Frog-themed NFTs using a variant of the ERC-404 token standard, billed as the first ERC-404 PFP collection, which its creators claim is deflationary.Monkees: Another PFP collection using the ERC-404 token standard, Monkees consists of 100 NFTs with ten attributes and six traits.
The future of ERC-404
Unlike the popular ERC-20 and ERC-721 token standards, ERC-404 is "experimental" and unofficial. That means it hasn't been submitted for review as an Ethereum Improvement Proposal (EIP) or undergone a full external audit. This means it could have undiscovered flaws, introducing a significant risk to token holders.
The team states that, "While these two standards are not designed to be mixed, this implementation strives to do so in as robust a manner as possible while minimizing tradeoffs," though they concede it is a "non-standard" implementation of ERC-721.
Because ERC-404 is an unofficial token standard, many NFT platforms and marketplaces do not support it by default
The team behind the token standard plan to submit it as an official Ethereum Improvement Proposal, a potentially lengthy process. However, their decision to circumvent the standard approval process for token standards could encourage other projects to do the same—which could lead to more unaudited token standards going to market, with the attendant risks to users that entails.

#ERC404

Unlocking the Potential of ERC-404: A Leap Forward in Tokenization
What is ERC-404?
ERC-404 is an experimental token standard that aims to bridge fungible tokens and #NFTs to enable liquidity and fractionalization.
In the dynamic realm of blockchain innovation, the ERC-404 token standard emerges as a beacon of potential, sparking discussions on whether it's a revolutionary opportunity or a fleeting pump and dump. This experimental standard aims to seamlessly bridge fungible tokens and non-fungible tokens (NFTs), paving the way for enhanced liquidity and fractionalization.
Understanding ERC-404: A Bridge Between Fungible and Non-Fungible
At its core, ERC-404 represents a groundbreaking attempt to merge ERC-20 tokens and ERC-721 NFTs. The result is a hybrid token that possesses both the tradable qualities of a token and the uniqueness of an NFT. The simplicity of ERC-404 lies in its combination of an ERC-20 token with an NFT, creating a versatile asset with various functionalities.
Operational Dynamics of ERC-404: A Token with Dual Faces
The operational dynamics of ERC-404 are intriguing and offer a glimpse into its potential. If you hold less than one ERC-404, it functions as a standard ERC-20 token, tradable on platforms like Uniswap. In contrast, possessing more than one ERC-404 transforms it into a combination of an ERC-20 token and an NFT, making the NFT tradable on Opensea.
The flexibility of ERC-404 is further highlighted in its transactional operations:
- Holding 1 ERC-404 and selling 0.5 ERC-404 results in burning the associated NFT.
- Holding 0.5 ERC-404 and buying another 0.5 ERC-404 leads to the minting of a new NFT.
- Holding 1 ERC-404 and selling the NFT corresponds to selling the entire ERC-404.
Examples of ERC-404 Tokens: Navigating the Uncharted Territory
Venturing into the realm of ERC-404 tokens, a few notable examples have emerged:
1. PANDORA (Market Cap: $197.5 Million)
2. DEFROGS (Market Cap: $15.6 Million)
3. RUG (Market Cap: $2.82 Million)
4. TADPOLE (Market Cap: $1.49 Million)
However, it's crucial to emphasize that ERC-404 is an experimental token standard, lacking formal audits. The market capitalization of ERC-404 tokens remains relatively small, signaling high-risk potential. As a reminder, this information is not financial advice, and thorough research is paramount before making any investment decisions.
[ ERC404 ] - The Hybrid Token Standard: Navigating the Landscape
In the thread initiated by @degen, a comprehensive exploration of ERC-404 unfolds. This section focuses on the ERC404 Token Standard, delving into novel technological advancements and spotlighting pioneers such as Pandora and DeFrogs.
To delve into the historical roots of ERC-404, enthusiasts are directed to the insightful discussions by @Pandora_ERC404. For a more detailed analysis, @blocmatesdotcom offers a comprehensive write-up, shedding light on everything known about Pandora so far.
Acknowledging the early contributions of visionaries like , the narrative surrounding ERC-404 gains credibility. The insightful contributions of these early adopters are recognized, urging followers to stay informed.
Pandora - ERC404's Vanguard: An Exploration
Pandora, crafted by @maybectrlfreak alongside emerges as the first token/NFT built on ERC-404. This groundbreaking project comprises a collection of 10,000 NFTs known as Replicants. The essence of ERC-404 lies in its amalgamation of ERC20 tokens and ERC721 NFTs, setting it apart as both a token and an NFT appreciating in value.
The transformative nature of ERC-404 is vividly portrayed by the fact that NFTs can now be traded on centralized exchanges, ensuring unparalleled liquidity. The concept of fractional ownership of illiquid blue-chip NFTs, now tradable on Tier 1 CEX, opens avenues for a new economy, innovative ideas, and tools within the blockchain space.
Operational Insights into Pandora + ERC404: A Harmonious Ecosystem
Understanding how Pandora and ERC-404 function is essential for potential investors:
1. Buying:
- Utilize to navigate potential MEV issues.
- Purchasing Pandora from the Uniswap LP rewards you with a Pandora NFT, automatically minted to your wallet in whole units.
2. Selling:
- Selling your token into the Uniswap LP triggers the automatic burning of your NFT in your wallet. Selling the NFT preserves it, while the token departs with the NFT.
3. Transferring:
- Transferring your token to another wallet initiates a process where the NFT is burned, and a new one is minted – essentially re-rolling.
The tradable NFTs retain rarity, scarcity, and unique traits, providing a multifaceted market dynamic.
Predictions and Future Outlook: Navigating the Uncharted Territory
Drawing parallels with historical narratives, the trajectory of the ERC-404 narrative on Ethereum mirrors the patterns witnessed with innovations on Bitcoin. With Pandora leading the way, forming partnerships, and witnessing continuous developments, the ERC-404 narrative is poised for rapid ascension to the billion-dollar mark.
In the journey of ERC-404, the second token ever launched on this groundbreaking standard, the first-ever PFP on ERC-404, marks yet another milestone in the evolution of decentralized technology.
As enthusiasts navigate this uncharted territory, it's imperative to approach ERC-404 with caution, recognizing its experimental nature and the associated risks. As with any investment, thorough research remains paramount, and this information does not constitute financial advice. The unfolding narrative of ERC-404 invites participants to explore the potential of a transformative hybrid token standard in the blockchain space.
#ERC404 #Write2Earn #TrendingTopic #PANDORA

- Introduction of ERC-404 standard brings forth "semi-fungible" NFTs, adding a new dimension to the NFT landscape.
- Ethereum gas fees experience an 8-month high attributed to the surge in popularity of ERC-404.
- Rapid decline in ERC-404 market cap, witnessing a significant 31% drop within a single day.
- Major tokens associated with ERC-404 also face a downturn, with some plummeting by as much as 31%.
- The sudden market decline raises questions about the potential for recovery in the near future or the possibility of a prolonged downturn.
As time progresses, the Ethereum ecosystem undergoes continuous evolution, marked by various innovations. One such recent addition is the experimental ERC-404 standard, which initially garnered significant attention and investment influx upon its launch. However, the excitement quickly turned into concern as the Ethereum network grappled with soaring gas fees, resulting in a downturn in the ERC-404 market.
So, what exactly is ERC-404, and why is its emergence causing strain on the Ethereum network? ERC-404 stands as a novel token standard, distinct from the popular ERC-20 and ERC-721 standards. While ERC-20 tokens maintain fungibility, and ERC-721 tokens introduce non-fungibility through NFTs, ERC-404 introduces a concept of "semi-fungibility," enabling NFTs to be subdivided into smaller, tradable units. This innovation, spearheaded by developers "ctrl" and "Acme," presents promising possibilities for NFT trading and storage.
However, the introduction of ERC-404 coincided with a surge in Ethereum network congestion, particularly evident in skyrocketing gas fees. This surge, reaching an eight-month high on February 9th, indicated a correlation with the ERC-404's popularity. The influx of traders seeking early access to this new standard likely contributed to the network congestion and subsequent fee escalation.
The rise and subsequent correction of the ERC-404 market exemplify the volatility inherent in cryptocurrency markets. Following its meteoric growth since the launch of the Pandora project, the ERC-404 market experienced a substantial decline, reflected in a 31% drop in total market capitalization. Major tokens within this niche, such as PANDORA, DEFROG, and RUG, also witnessed significant declines, indicative of a shift in investor sentiment towards bearishness.
Despite the current market downturn, there remains optimism within the blockchain community regarding the potential of ERC-404. Visionary founders, like Yash Dahekar of DODAS, highlight groundbreaking developments, such as the world's first Multichain ERC404 Indexer with API. Such advancements underscore the ongoing innovation within the blockchain space, despite the challenges posed by market volatility and network congestion.
It's essential to recognize the inherent risks associated with cryptocurrency investments and conduct thorough research before making financial decisions. While Voice of Crypto strives to provide accurate information, readers should exercise caution and make informed choices in navigating this dynamic and volatile market landscape.

#ERC404 #NFT #Ethereum #ETH #Crypto2024
$ETH

#ERC404 the hot new narrative that's already skyrocketing over 7,000%.- What is ERC-404- How ERC404 works- Airdrops & Strategies to capitalisations- Eco-System Projects with over 100x potentialDon't late, while it's still very early like as in previous years BRC20 (Ordinals), NFTs, Metaverse, Web3, DeFi etc... ! WHAT IS ERC-404? ERC-404 - A new standard that combines the benefits of ERC-20 and NFT ERC-721 tokens, which was introduced just a few days ago.ERC-404 assets have both fungible and non-fungible properties:➜ ERC-20 tokens are fungible units, much like dollars.➜ ERC-721 tokens represent non-fungible properties, such as NFT PFPs.This brings together the best aspects of both assets, overshadowing any negative aspects they may have.Basically, ERC-404 introduces two major functionalities: Liquidity and fractionalization. The fungibility of the bound ERC-20 token acts as a price floor for the NFT and allows shared ownership of the unique asset. This solves liquidity by letting you easily buy and sell fractions of the NFT on a decentralized exchange.HOW ERC-404 WORKS..? It may sound complicated, but here it is super simplified criteria of description is:- Suppose the project's total supply is 5,000 TOKEN, using ERC-404 standard.- If you buy exactly 1 TOKEN (not 0.97 or 0.5), then 1 NFT will be minted to your wallet.- Decide to sell the token? The associated NFT will be burned.✓ It's important to note that NFTs can be traded on NFT platforms, and some of them are already available for purchase on platforms like #Blur or @Opensea As an practical Example-Imagine a scenario where 1000 apartments in a residential area have been tokenized.You understand that the price of these properties will likely increase over time, but purchasing an entire apartment is prohibitively expensive.However, with ERC404, you can now buy just a fraction (1/10000) of a tokenized asset.This means you have the opportunity to invest in a portion of the property and also have the flexibility to sell your share at any time.What are the limitations of current token standards?Existing ERC standards like ERC-20 and ERC-721 cater to either purely fungible assets like currencies or entirely unique collectibles like digital art. This division makes it difficult to enable shared ownership or fluid exchange of distinctive digital items.Understanding ERC-404 through the Pandora projectThe Pandora project represents the first real-world application of the novel ERC-404 token standard. ERC-404 aims to introduce “semi-fungibility” by bundling interchangeable ERC-20 tokens with unique ERC-721 NFTs.Pandora issued 10,000 ERC-404 tokens tied to 10,000 colored box NFTs called Replicants. These NFT boxes appear in one of five colors denoting varying levels of rarity, with common green boxes and rare red boxes. When an ERC-404 PANDORA token is purchased, a random box NFT is generated and bound to that token.Also, PANDORA holders have the odds to receive Airdrops from various other ERC-404 projects. ● PANDORAPrice: $22,500FDV: $220MThe 'X' handler "wehavenohandle" - was the first project to confirm airdrop for holders.What does this actually enable?ERC-404 introduces two major functionalities:Liquidity and fractionalizationThe fungibility of the bound ERC-20 token acts as a price floor for the NFT and allows shared ownership of the unique asset. This solves liquidity by letting you easily buy and sell fractions of the NFT on a decentralized exchange.Dynamic rarityERC-404 allows collectors to influence the rarity of their NFTs post-acquisition. Upon purchasing these tokens, collectors can initially assess the rarity of the NFT they have minted. For enthusiasts aiming to enhance the rarity of their collectibles, there is an innovative option available: transferring the ERC-404 token to a new wallet. This action serves as a mechanism to “re-roll” the NFT’s traits, potentially elevating its rarity.The experimental status of ERC-404While pioneering in its conceptualization, ERC-404 currently remains an experimental token standard. The “ERC” designation implies a standardized protocol that has undergone rigorous peer review and testing through Ethereum’s formal governance processes.However, ERC-404 has not officially passed through the Ethereum Improvement Proposal (EIP) or finalized Ethereum Request for Comments (ERC) stages. Without this formal assessment, the standard lacks the assurance and security auditing of established specifications like ERC-20 and ERC-721.HOW CAPITALIZE ON IT - Currently, ERC-404 is really a degen play.It's important to acknowledge that some projects may result in a total loss.The strategy is straightforward: Invest a portion of your funds into multiple projects, only risking what you're comfortable with.Statistically, 1-2 out of every 10 projects gain incredible results, outweighing any losses incurred.Ideally, if you can withdraw your initial investment after any growth, you eliminate further risk and have the opportunity to benefit from significant growth while weathering potential downturns.ERC-404 Eco-System Projects-Some of the best projects, those already given too much growth and many many are undergoing for projection this year 2024 to boost up market into new style Likewise previously year into Ordinals growth. PANDORA RUG SWPRSDEFROGSNPCYESCOSMICANONSGHOSTERC-404 Benefits-Instead of focusing solely on NFTs, the use of ERC404 allows for the creation of a wide range of unique digital assets, such as:◦ Tokenized RWAs◦ GameFi◦ Collectibles◦ and much moreThis approach ensures access to high-value assets without being solely reliant on the sometimes less liquid NFT market.What's the Risks.? It's important to note that ERC-404 has not undergone the formal Ethereum Improvement Proposal (EIP) and Ethereum Request for Comments (ERC) processes.This lack of community vetting raises concerns about potential security flaws. Therefore, adopting ERC-404 could establish a risky precedent and potentially expose users to unforeseen exploits.DISCLAIMER-All Contents & images are collected from Internet to educate people's about latest projects with educational materials and not intend to breakout anyone's copyright laws, so keep it as an education purpose. Also Investments & Trade in Crypto with self assessment of your funds after Do Your Own Research Completely. #TrendingTopic #TrendingArticle #Write2Earn