#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 potential
Don'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 project
The 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.
● PANDORA
Price: $22,500
FDV: $220M
The '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 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.
Dynamic rarity
ERC-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-404
While 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
SWPRS
DEFROGS
NPC
YES
COSMIC
ANONS
GHOST
ERC-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 more
This 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.