ERC404 Token Standard!
A new meta... Or buzzword
Let's find out...
Token Standards are formal set of
rules and protocols that determine the way a
token is created and functions on a blockchain...
Erc404 Token Standard combines
the elements Erc20 & Erc721 tokens into a single digital assetâŠ
Let me explainâŠ
Ethereum Blockchain Token Standard includes
âą Erc20 = Crypto currency (fungible tokens)
âą Erc721 = Crypto collectibles (non-fungible tokens)
You can't trade both on same platformâŠ
You trade collectibles on opensea and use dexes for fungible tokensâŠ
This is where ERC404 comes inâŠ
to bring a common ground for
fungible and non fungible tokens...
It tends to unite ERC20 & ERC721
so you can easily trade both on same platformâŠ
Instead of using opensea you can easily trade your NFTs on dexesâŠ
But there's a twistâŠ
For every ERC404 token you buy
an NFT is minted and when you sell your token an NFT is burnedâŠ
...also you don't get an NFT if you buy less than a full tokenâŠ
For instanceâŠ
if you buy 0.9 tokens you don't get any NFTâŠ
but you'd get your NFT once you
top up with 0.1 to get a full tokenâŠ
Here's moreâŠ
For each NFT minted or burned
there's a new trait combinationsâŠ
Keep an eye on the NFTs that comes with your tokensâŠ
You might get a rare NFT worth
more than the price of the token
cause of the continuous burn and mint processâŠ
and you could make more profit selling your rare NFTs on openseaâŠ
Don't get confused hereâŠ
Your tokens and NFTs are linkedâŠ
so if you sell a token the NFT gets
burned or you sell an NFT you loose the tokenâŠ
Since you don't know what NFT
gets burned when you sell your tokensâŠ
It's better to use the NFT market
place for selling off especially if you have a rare NFTâŠ
so you don't sell your rare collection for peanutsâŠ
Please note...
ERC404 is just an experiment and
yet to be an official #ETH Token StandardâŠ
but the amazing thing is...
it has already attracted thousands
of developers and investors!
Thanks for reading đ
