Today we continue to talk about two very popular projects recently, which is the concept of mixing graphics and coins (even NFT-ERC721 is also an ordinary FT-ERC20). The current leading project is Pandora, which was $200 when it was launched on February 6. It is currently worth US$200 million, which has increased 100 times, and its current market value is US$160 million. We are talking about two projects today, one is this Pandora, and the other is the graph-token hybrid NUTS on the SOL chain. Let's see if there's any chance.
background
In fact, this concept was previously a token standard developed by a team called Emerald. In order to solve the liquidity problem of NFT, an improved version of the token standard was launched, which directly built liquidity on Uniswap. When you buy on Uniswap Input 1 $EMERAID, and you will get 1 token at the same time. 1 NFT = 1 $EMERAID token (ERC-20). However, due to the vulnerability of the contract being attacked, the token contract has been replaced many times, and the team is still stepping up its efforts. Development fixes.
Pandora was inspired by Emerald. Its three founders optimized the Emerald contract into the current ERC-404 token standard. ERC-404 attempts to solve the gap between the two traditional standards of ERC-20 and ERC-721. Through a creative coding method, the two achieve unprecedented symbiosis.
fragmentation mechanism
Pandora is an NFT fragmented project, the core of which is the ERC404 token standard, which is an experimental token standard between ERC20 and ERC721. ERC404 tokens can be traded on platforms such as Uniswap, similar to fungible tokens. At the same time, one ERC404 token can correspond to one NFT (called Replicant NFT). The mathematical relationship between them is as follows:
nReplicant NFT = [nERC404]
Where nReplicant NFT represents the number of Replicant NFT, nERC404 represents the number of ERC404 tokens, and [n] represents the largest integer not greater than this number.
To put it simply, you can hold an NFT by collecting a whole token. For example, the user holds 0.5 tokens and he owns 0 NFT; the user holds 1 token and he owns 1 NFT; the user holds 1.5 tokens and he owns 1 NFT; the user holds 2 tokens. If the user holds 2.5 tokens, he owns 2 NFTs, and so on.
In the Pandora project, its ERC404 token is PANDORA, and its ReplicantNFT is Pandora Replicants. Users can first use ETH and other tokens to exchange for PANDORA tokens on Uniswap V3. The user’s holding of PANDORA tokens is equivalent to holding fragmented Pandora’s NFTs (Pandora Replicants). The number of tokens held determines what the user owns. The number of NFTs.
Through the ERC404 standard, Pandora achieves an effect similar to NFT fragmentation. When optimistic about a certain NFT series, users can choose to hold a certain amount of tokens instead of the complete NFT, which is more flexible for capital allocation and also lowers the amount threshold for participating in NFT investment.
NFT burning and re-minting mechanism
However, Replicant NFT is different from the common ERC721 format NFT. Replicant NFT has a burning and recasting mechanism, which is triggered when the user performs operations such as transfer or transaction on ERC404. As mentioned earlier, the integer ERC404 token will be bound to the Replicant NFT, so when the ERC404 token changes, the Replicant NFT will also change. There are two situations here:
1) When a user sells ERC404 tokens, the Replicant NFT in the user's wallet will be burned (destroyed).
2) When a user transfers money, the Replicant NFT in the Sender wallet will be burned, and then a new Replicant NFT will be minted in the Receiver wallet.
Each time it is reminted, the characteristics of the Replicant NFT will be refreshed, and the rarity may also change accordingly. Therefore, if the user is not satisfied with his NFT, he can continuously transfer it to refresh the NFT until he gets the NFT he likes. If a user does not want to change his Replicant NFT (does not want to burn and recast it) and wants to sell or send it to another user, then he can sell the Replicant NFT on OpenSea or send it to another address. To put it simply, if the user wants the Replicant NFT to change, then operate the ERC404 token; if the user does not want the Replicant NFT to change, then operate the Replicant NFT.
This not only greatly improves the liquidity of NFT itself, but also stimulates unlimited trading creativity. Users can even DIY which NFTs to burn or keep first.
Of course, as an experimental standard, ERC-404 still has some technical flaws at this stage, mainly reflected in the fact that the object cannot be clearly specified when destroying NFT (for example, if you have two NFTs of different types of rarity in your wallet, the one you destroyed will It is impossible to prioritize NFTs with low rarity to be destroyed first), but this can be resolved through some Tokenomics designs such as adding a new rarity mechanism.
Pandora Replicants
Pandora Replicants are Replicant NFTs of the Pandora project. They are boxes of five different colors, and the five colors represent different rarities. The official has not disclosed the specific quantity of each rarity, but the order of rarity from high to low is: red, orange, purple, blue, green. New NFTs may be released from the box in the future. The current floor price is 10 Ethereum.
Token economy
There are 10,000 tokens in total, and currently, only 7% are allocated to the team and early contributors. Then when the project was launched, the team bought 5,000 units. However, CMC shows that there are only 8,000 coins in actual circulation.
The current official website of the project is a very simple one-page picture, there is no discord, there are about 30,000 followers on twitter, and the team is also anonymous, which is a risk point. Then we look at the second project, Deez nuts (peanuts) on the Sol chain. On the SOL chain, it is not ERC404, but a technology called Tiny SPL. In fact, this technology appeared earlier than ERC404. It was already out of the circle in early January. At that time, Deez nuts (peanuts) were free mint. , and now it has increased to 0.12 SOL, which is almost 13u.
Technical features
1. State compression
Unlike Ethereum, Solana charges accounts on its network a fee, known as rent, for storing data state. If an account cannot pay rent, the system will delete the account to reduce storage costs for data that is no longer maintained. As SOL prices rise rapidly, rental costs are becoming more and more expensive. Tiny SPL leverages state compression on Solana to allow users to own tokens without paying rent.
Compression is a fundamental need for Solana, and “state compression” is also a technical hotspot in the Solana ecosystem in 2023. Therefore, the Tiny SPL protocol is an improvement at the "standard level" and has similar historical significance to Ordinals and Stacks.
2. Reduce the cost of deploying NFT
Through the Tiny SPL protocol, the cost of deploying NFT on Solana is greatly reduced, or even negligible, which can perfectly realize the maximum cost savings of NFT fragmentation and meme airdrops.
For example, @wenwencoin WEN needs to airdrop one million users. Direct airdrop will waste tens of thousands of fees, so WEN chooses to let users apply for it. However, if the Tiny SPL protocol is used, the airdrop cost is almost zero.
3. For the first time, the two-way free flow of cNFT (compressed non-fungible token) and Token is realized (NFT<->FT)
Now, through the Tiny SPL protocol, peanut tokens ($NUTS) and cNFT (DEEZ NUTS) can be exchanged at equal prices. On the newly opened AMM swap (the founder did not use traditional dex such as Ray/Orca/etc.), if you observe from the chain, you will find that when you sell peanut cNFT, it will enter the pool through routing mint peanut token and exchange it for sol . When you buy peanuts through his dex, the token in the pool will be automatically destroyed, and a cNFT of the same number of peanuts will be mint to you.
Value analysis of $NUTS
$NUTS is the first token of the Tiny SPL protocol. The official launched the swap function on January 27th to set up a liquidity pool and AMM to automatically make markets.
The start uses fair and random distribution of freemint, random function mint, 100-1000, emphasizing randomness and fairness.
The total supply of $NUTS is 21 million, the current price is $1.2, and the market value is about $25 million. Compared with the market value of Pandora just mentioned, it is much lower, but compared with the US$1.3 billion of ORDI, the leader of the previously popular BRC20 sector, it still has room for 40-50 times.
Finally, let’s summarize these two projects. Both are leaders in the concept of graph-to-coin mixing. One is on the Ethereum chain and the other is on the Sol chain. Although they have increased many times, they are currently a new narrative. , there is still a certain space. What is different from the previous BRC20 is that this technology does have application scenarios and can increase the liquidity of NFT. Nuts’ Tiny SPL also has the ability to compress states, which are all just needed functions, so these The project should have a higher market value than ORDI. But there are risks in the same way, because it has indeed risen a lot, so there is still a certain risk at this point, because after all, ERC404 has not entered the EIP of Ethereum, and it is still an unorthodox protocol. Secondly, these projects currently Neither the official website nor the operations are very perfect, and they are still speculating on concepts, so we must pay attention to risk control. As the saying goes, risks and benefits are directly proportional.#内容挖矿 #图币互换