jakiro
Author: teng yan, Delphi Digital NFT research supervisor; translation: 0xjs@Bit chain vision world
Pandora/ERC404 was born from running the road.
All this starts with a new token Emerald.It is mixed by conceptualization into ERC-20 (homogeneous) and ERC-721 (intangible homogeneous) tokens, but is attacked due to insufficient developers.
A firm three -person group was born from the ashes: 0xacme (former Coinbase engineers), Ctrl and SearNseele, and they are committed to turning this idea into reality.
My mother told me to open the box and be careful
They did it.Since its launch on February 2, Pandora (the first ERC404 token) has gone through rapid growth, soaring from obscurity to more than $ 100 million.
Its rise has sparked enthusiasm for the launch of the new 404 token.In just 2 weeks, we have witnessed the appearance of other 404 tokens.For example, Cygaar, a well -known developer in this field, launched DN404, which is a enhanced open -source token standard and has similar characteristics to ERC404.
But why is it so amazing?
(For simplicity, I referred to ERC404, DN404 and similar tokens as “404”.)
NFT fragmentation has failed
NFT fragmentation is nothing new.For many years, people have been fascinated by NFT fragments.
This idea is simple: Today, a Cryptopunk NFT is worth $ 150,000.Few people can afford a punk.
If you only need to spend $ 1,500 to get 1/100 of the same PUNK, what will happen?Suddenly, opportunities become easier to get.If PUNK’s value is doubled during the next NFT bull market, then $ 1,500 investment may soar to more than $ 4,500.
However, the previous fragmented attempts have always been difficult to get attention:
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NFTX has been trying to achieve this through fragmented state for many years (deposited in Punk NFT and obtained PUNK homogeneous tokens), but it has not been widely used even today.
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Flooring Lab launched a similar idea a few months ago: deposited in Azuki NFT and obtained 1,000,000 Uazuki tokens. These tokens can be traded like MEME coins.It performs well, mainly because it uses a new token FLC to motivate liquidity and guide the protocol.
With my foolish opinion, despite the best intentions, these types of protocols almost died when they appeared.
In order to start using these fragmented protocols, users need to approve multiple transactions.Each transaction costs costs.As far as spent money and the spiritual effort of every step, this adds up quickly.People have always worried that mistakes may cause valuable NFT loss.For most people, NFT Sustainable Bonds (NFTPERP or TRIBE3) may be a more effective way to gain income from NFT.
The difference is: 404 By default, each NFT fragmentation can be seamlessly combined into a whole, solving the problem of user experience related to fragmented.
Yes, this is an ancient saying in the science and technology industry: less steps = more conversion.
I considered two complementary angles of 404 potential use cases:
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Can NFT benefit from greater homogeneity?
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Can homogeneous tokens benefit from NFT?
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Govern the tokens to award the right to vote in DAO.By enabling these tokens to become NFTs with different reputation (in metadata) based on the contribution of the holder, new governance dimensions can be appeared.Imagine a governance NFT, which granted access to different levels of exclusive functions based on the historical participation of the holder in the community.This has inspired to actively participate and cultivate a more elite governance model.
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Practical tokens can provide users with a personalized experience in combination with unique features.For example, the tokens of the game platform can be bound to NFT with uniquely -based and rare uniquely -based and rare gaming assets or capabilities.This not only enhanced the community participation around the token, but also created a new utility for it.
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Memecoin (such as WIF, Doge, PEPE) is usually related to Internet culture and heat trends, and can use the NFT mechanism to better participate and develop its community.By introducing rare features and loot box mechanisms, they can use households to gamize.The NFT bull market cycle in 2021 shows our love of “altcoin with pictures”.The integration of Meme and NFT not only enhances fun, but also cultivates a stronger sense of belonging.
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Ordinals was launched in December 2022, but the inscriptions did not begin to be parabolic until 4 months later in April 2023.
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Similarly, ERC-6551 is a breakthrough standard that allows NFT to have wallets, which seems to be more and more popular after the launch of May 2023.
1. Can NFT benefit from higher homogeneity?
Lobricity occupies a dominant position in cryptocurrencies.
Fragmentation can greatly enhance liquidity by allowing investors to buy and sell NFT fragments and expand the market of potential participants.
In addition, fragmentation makes the price discovery faster.In 2023, the slow decline of many NFT stems from the lack of inherent liquidity, extending the time required for the consistent fundamentals and prices.
To explain how homogeneity increases liquidity: Just look at what happened to Pandora.99% of the transaction volume is done by homogeneous tokens instead of NFT.
@CTRL believes that by making NFT homogeneous, due to the increase in capital flow, the valuation of the NFT collection (about $ 1 billion) can be closer to the valuation of top -level coins ($ 60 billion).
This has created some interesting examples for 404 token:
1. High -value art and collectibles.These are usually very scarce and valuable.Tessera supported by Paradigm tried to do this through its fragmented platform, but because it was limited, it had to be closed last year.The key obstacle is to effectively reorganize NFT after spin -off -this process is often caught in complex DAO governance.404 token relieves this problem.
2. Real estate: With the help of the RWA trend, real estate is conducting tokenization on the blockchain.Various startups have explored different methods, from using NFT to directly represent property (ROOFSTOCK) to using homogeneous tokens to acquire property (CITADAO).404 may merge these methods.
Palette is an example: an “re -rolling” function for the use of 404 to introduce native fragments into the collection of art, and provides the “re -rolling” function for the artworks in its collection.It becomes more interesting through the new interactive layer.
2. Can homogeneous tokens benefit from NFT?
Although the focus of 404 is mainly concentrated in NFT’s greater homogeneity, there is another side: homogeneous tokens can also benefit from NFT to NFT.
The following is how various types of homogeneous tokens have obtained a major upgrade through 404:
AEVO is an option and sustainable contract DEX, a pioneer of integrating 404 token.It uses the back -end 404 mechanism to make DEFI liquidity mining more fun.When the user trades on the platform to farm the AEVO airdrop, they may obtain 100 times the plowing of farming.
What is the future of 404
The 404 community may strive to improve their token standards and solve problems such as GAS fees.Cooperate with the agreement and ensure that the exchanges and block browsers understand these standards is a key priority.Open source encouragement is more extensive participating in 404 development.
However, the emergence of real cases takes time.We have seen this story about the new token standard before:
It takes time to build a new use case and introduce the potential of 404.However, these are important steps to achieve long -term vision of 404.
But what about pandora?
Although Pandora is the founder of the first 404 token, it lacks any direct value accumulation mechanism.The use of 404 standards will not generate any costs.After all, 404 aims to be open source and can be visited by everyone.
The market is aware of this: Under the influence of speculative enthusiasm, the price of Pandora initially rose to $ 32,000, which has fallen 60% to $ 12,600.
However, in the next few days, Pandora may have two eye -catching stories:
1. Memecoin:As the first 404 token, if the 404 token is widely used, Pandora may attract widespread attention, reminiscent of the amazing market value of ORDI’s amazing $ 1.5 billion, purely because it is the first BRC-20 token.
2. “TIA”:Similar to the price growth of the TIA index promoted by the pledged COSMOS protocol airdrop, the new 404 project may allocate airdrops to PANDORA holders because their holders may be a firm supporter of 404.For example, Palette plans to make 5% tokens to PANDORA holders.
It is undeniable that the tokens that support new features are exciting.Innovation like this is what our cryptocurrency develops vigorously.
