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 asset…
Let me explain…
Ethereum Blockchain Token Standard includes
• Erc20 = Crypto currency (fungible tokens)
• Erc721 = Crypto collectibles (non-fungible tokens)
You can't trade both on same platform…
You trade collectibles on opensea and use dexes for fungible tokens…
This is where ERC404 comes in…
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 platform…
Instead of using opensea you can easily trade your NFTs on dexes…
But there's a twist…
For every ERC404 token you buy
an NFT is minted and when you sell your token an NFT is burned…
...also you don't get an NFT if you buy less than a full token…
For instance…
if you buy 0.9 tokens you don't get any NFT…
but you'd get your NFT once you
top up with 0.1 to get a full token…
Here's more…
For each NFT minted or burned
there's a new trait combinations…
Keep an eye on the NFTs that comes with your tokens…
You might get a rare NFT worth
more than the price of the token
cause of the continuous burn and mint process…
and you could make more profit selling your rare NFTs on opensea…
Don't get confused here…
Your tokens and NFTs are linked…
so if you sell a token the NFT gets
burned or you sell an NFT you loose the token…
Since you don't know what NFT
gets burned when you sell your tokens…
It's better to use the NFT market
place for selling off especially if you have a rare NFT…
so you don't sell your rare collection for peanuts…
Please note...
ERC404 is just an experiment and
yet to be an official #ETH Token Standard…
but the amazing thing is...
it has already attracted thousands
of developers and investors!
Thanks for reading 🙏
