Is the ERC404 behind Pandora’s surge currently suitable for deployment?

Source: Daoshuo Blockchain

In the past two days, a newly proposed Ethereum token standard has suddenly become popular: ERC-404.

With the proposal of this standard, the author also issued Pandora, the first experimental token of this token standard.

What scenario does this token standard describe?

It combines two completely different token standards, ERC-20 and ERC-721. We can understand it as tokens issued under this standard have two token attributes at the same time: non-fungible tokens (NFT) and fungible tokens (ERC-20).

We take Pandora as an example, which specifically exhibits the following two typical characteristics:

A total of 10,000 NFTs were issued for this token (we call it Pandora-NFT ), which is exactly the same as the Ethereum NFT we usually see. These 10,000 NFTs can be traded on any NFT platform (such as OpenSea, Blur, etc.)

But at the same time, it has 10,000 ERC-20 tokens (Pandora-ERC20). The ERC-20 tokens here are the same as the ERC-20 tokens we trade on Uniswap. These 10,000 ERC-20 tokens can be traded on any DEX.

This way of constructing the token means that once the token is issued, it will also have the liquidity of an ERC-20 token and can be conveniently traded like any ERC-20 token.

The liquidity of NFT is innately formed during the construction stage.

When a user purchases a complete Pandora-ERC20 token on Uniswap, the user can not only get the Pandora-ERC20 in his wallet, but also automatically get a Pandora-NFT. The attributes of this Pandora-NFT are random. It may be a common model or a rare model.

This unique liquidity and transaction feature is unprecedented in current NFTs and ERC-20 tokens.

Some of the features I have listed here are just a very simplified description of this token. In fact, there are a lot of details worth savoring. You can search for articles on this topic online.

If we delve into these details, we will find many more interesting phenomena and operations. These phenomena and operations bring a very broad imagination to the usage scenarios and business models of this token.

This is why this coin has become so popular in the past two days.

What is also interesting is that the sale of this Pandora token also adopts a fair sale method, and everyone has the opportunity to participate. From the comments of some early participants on the Internet, we can find that when this token was first released, there was a long period of time when the sale was not progressing quickly. Moreover, the price was not too high for a period of time after the token sale.

However, such a time window passed almost instantly. Soon more and more people realized the value of this token, and its price quickly increased.

I think the biggest feature of this standard is that it naturally unlocks the liquidity of NFT, making it almost equivalent to ERC-20, which greatly enhances and facilitates NFT transactions.

The significance of this agreement to NFT applications is undoubtedly great, but I think the improvement of NFT application value fundamentally lies in the innovation and change of the application itself.

This is like Uniswap greatly releasing the liquidity of ERC-20, but whether the ERC-20 token is valuable fundamentally depends on whether the project itself is valuable.

However, it is conceivable that a large number of imitation and popular projects may appear in the short term, injecting a lot of heat into the NFT market.

In addition, to apply some of my personal experience:

A truly disruptive protocol is rarely recognized by everyone as soon as it comes out. "dreamlike.

Bitcoin, Ethereum, Uniswap, Inscription... Isn't this the case.

Even the AI ​​that everyone knows today has only reached this turning point after decades of development.

As soon as it came out, many people realized how "subversive" and "dreamy" the agreement was. Either its subsequent effect was far less than what everyone originally expected; or it was proved to be truly "subversive" afterwards. The "dream" place is not the scene that everyone originally expected, but a corner that is out of reach.

To put it aside, do you still remember Loot, which became a hit as soon as it came out two years ago?

The price of Pandora has now reached 10 Ethereum. At this price, I think it's a bit too high in the short term, and I won't buy it for the time being.

Tomorrow is New Year’s Eve. We wish all readers good health and all the best in the Year of the Dragon.

See you next year.