ERC-404 Pandora_ERC404's logic is completely different from Solana's. Although at first glance, many people in the group just said "Isn't it just Solana peanuts?", using the words "unification of graphics and currency" is a huge misunderstanding of the actual effect achieved by ERC-404.
Essentially, ERC-404 is by far the most interesting liquidity optimization solution that adds the most possibilities to the NFT family. To understand this is very simple, just look at the mechanism a little bit. Let's take Pandora's Box as an example:
1. The total amount of Pandora’s Box ERC-20 Token $PANDORA is 10,000. For every $PANDORA we buy, we will automatically get 1 Pandora’s Box NFT. Of course, if the sale results in less than 1 $PANDORA in hand (for example, I sell 0.5 $PANDORA), the box I hold will be automatically burned.
2. Therefore, the maximum supply limit of ERC-20 coins is theoretically also the maximum supply limit of ERC-721 small pictures, but this is only "theoretical" because it is almost impossible to reach exactly 10,000 holders with 1 coin each $ Distribution of PANDORA coins. As it stands now, the actual inventory of Pandora's Box is over 4,000.
3. Continuing from the previous point, this actually completely subverts the issuance and even operating logic of an NFT series. First of all, this is simpler in some ways. For example, you only need to deploy one LP, which is actually equivalent to opening the Mint link. Curation rights are partially devolved into the hands of users - we optimistically expect this arbitrage scenario - more popular or rarer images will continue to change hands in the form of images on OpenSea/Blur at a premium over ERC-20 coins , and the picture sellers who got the premium continued to try their luck by buying coins and opening pictures.
At this point, I think everyone can understand that ERC-404 is a complete innovation for NFT, while Solana Peanut is more about solving the problem of Solana network rental fees. Although they all seem to have pictures and coins, the things they are actually trying to solve are completely different.
ERC-404 is the only NFTfi solution that interests me so far, or that would be inaccurate because it is really just a complete “coin-in-one”. The original fragmentation direction is completely opposite and destroys NFT. It is very logically unreasonable - for example, it is very simple. Let me say this, pick one of the 10,000 paintings and lock it in a safe, and then everyone collects the safe. Key fragments, this is the fragmentation logic of the past.But what's the point? Holding the key to the safe (buying coins) is equivalent to a security guard whose salary is not guaranteed (when the series goes down, I will also go down). I don’t have any rights and interests. The painting itself feels like it has been torn into pieces and is downgraded, not to mention the series. The liquidity itself is low, and there is only one open pool in the series. How much water can be in this pool? All affectionate security guards.
And ERC-404 is "art or currency, you choose for yourself, if you like to speculate in coins, just keep doing it, don't expect to see any chicken bar pictures." And with this mechanism, native NFT leverage is also very easy (directly open long and short on the currency), direct lending is also very easy, and various NFTfi tools will probably tremble...
From a picture perspective, it will be quite fun in terms of games and art. For example, if I write an article called Rebirth: I am the boss in the currency circle, 100 coins means 100 chapters. Is there really a way to publish all the chapters? Or will this be a novel that will never be finished because it is too expensive to read?
So let’s summarize again. The current ERC-404 is an innovation of NFT. Basically, the UniSwap pool is seamlessly connected to OpenSea/Blur, and smooth transactions can be performed on CEX (instead of the previous fragmented pool, which is very small and almost impossible. Seen on CEX), unpredictable rerolling of the map (in the past, existing maps were put back into the vault for exchange, now it is decided whether a map can be released and survive), simpler and even fair startup method ( If you can guard against sniper bots), there will be a better combination of finance and art and infinite fun possibilities.
