What is ERC-404?

ERC-404 is an experimental token standard built on the Ethereum blockchain that aims to combine the functionality of ERC-20 tokens (fungible tokens) and ERC-721 tokens (nonfungible tokens, or NFTs) into one standard. This means that ERC-404 tokens can be both fungible and non-fungible, depending on the specific implementation.

In short, ERC-404 is a new way to define digital assets such as tokens or collectibles on the internet or NFTs.

🔥How does ERC-404 work?
One NFT from the base project is given to a wallet that holds complete ERC-404 tokens. When tokens are sold, NFTs are automatically burned. Tokens and NFTs can be traded independently.

🔥Key features of ERC-404:

- Hybrid functionality: ERC-404 tokens can represent both fungible and non-fungible assets, offering flexibility for a variety of use cases.

- Native liquidity: Unlike traditional NFTs, ERC-404 tokens have built-in liquidity mechanisms, allowing for easier trading and fractional ownership.

- Programmable scarcity: The supply of ERC-404 tokens can be dynamically adjusted through code, enabling an innovative tokenomics model.

🔥The project uses the ERC-404 token standard:

- Pandora and DeFrogs are two projects that have implemented the ERC-404 token standard.

🔥At its core, ERC-404 redefines the concept of digital assets by providing a flexible framework for token creation and management.

In conclusion, ERC-404 symbolizes a paradigm shift in token standards, opening up new possibilities for tokenization and decentralization of finance. As Ethereum evolves, the adoption of innovative protocols like ERC-404 marks a future defined by increased functionality, liquidity, and utility in the digital asset landscape.

And !️keep in mind

ERC-404 is still an experimental standard that does not yet have an official review or traditional Ethereum Improvement Proposal (EIP) process. This means that it requires careful application and use.

Hope it is useful
Didi chanel