Based thread by Bankless
— Developed by the team Pandora_ERC404
ERC-404 is a new, unofficial token standard that aims to bridge the gap between regular tokens and NFTs.
It is unofficial because ERC-404 skipped the formal Ethereum Improvement Process (EIP) and Eth Request for Comments (ERC) processes, thus has not been vetted by the community for security vulnerabilities, so its adoption may introduce security risks.
HOW IT WORKS?
— ERC-404 creatively mixes elements of the ERC-20 and ERC-721 standards, which are not traditionally intended for fractional interoperability
— The new standard is different from ERC-721, where NFTs are traditionally minted and burned for fractional transfers, and different from NFT fractionation protocols, where you can lock up an NFT and issue shares against it.
It is intended for native fractionation immediately within NFT projects using this standard.
This opens up new opportunities for experimentation and trading.
— First project Pandora, built on the ERC-404 standard, issued 10k ERC-20 tokens and 10k associated Replicant NFTs. If you buy one full $PANDORA token at stock exchange, one will be issued to your wallet NFT Replicant.
If you are selling a token, its associated NFTs burnt
https://dexscreener.com/ethereum/0x1df4c6e36d61416813b42fe32724ef11e363eddc
https://blur.io/collection/pandora-replicants
- Since ERC-404 is experimental, many platforms will not automatically support the standard.
— Pandora has already taken off, there is no way to catch this train. There are more collections ahead experimenting with ERC-404, and more platforms that could potentially integrate this technology
- On the latter front there is some adoption of ERC-404 by projects such as wasabi_protocol And Peapods.
Also on the radar Froggy And No Handle
- ERC-404 is currently untested and means it may have potential vulnerabilities that have not yet been discovered!
