Recently, the ERC-404 standard has been attracting significant attention from the crypto community. The value of projects developed under this standard has been consistently growing. Among them, the Pandora project is at the forefront of this trend. So, what exactly is Pandora? Does this project bring any differences to the NFT market? Let’s explore in the article below.
Pandora is the project behind the development of the new ERC-404 standard on the Ethereum network. The ERC-404 standard combines features of both ERC-20 (tokens) and ERC-721 (NFTs) standards, addressing liquidity issues for NFT projects.
For the Pandora project, there will be a total supply of 10,000 $PANDORA (ERC-20) tokens and Pandora NFTs (ERC-721). When a user purchases 1 $PANDORA, their wallet will automatically mint 1 Pandora NFT, and vice versa, when a user purchases 1 Pandora NFT, their wallet will automatically mint 1 $PANDORA.
This system allows users to gradually accumulate tokens to acquire NFTs or to fractionally divide NFTs for sale. Fractionalization enables easier access for newcomers or those with limited capital, thereby increasing liquidity for NFTs and expanding the potential for integrating DeFi into NFTs.
In the Pandora project, the design of ERC-404 will have a total combined supply of 10,000 tokens and NFTs. When a user purchases 1 NFT, their wallet will automatically mint 1 $PANDORA token, and vice versa, when a user purchases 1 $PANDORA token, their wallet will automatically mint 1 Pandora NFT.
Example:
- Buying 1 $PANDORA token → The wallet will mint 1 Pandora NFT → The wallet will hold: 1 $PANDORA token and 1 Pandora NFT.
- Buying 0.5 $PANDORA token → The wallet will hold only 0.5 $PANDORA token and will not mint any NFT.
- Selling 1 $PANDORA token → Burns 1 Pandora NFT.
- Selling 1 Pandora NFT → Burns 1 $PANDORA token.
- Buying 1.5 $PANDORA token → The wallet will mint 1 Pandora NFT and hold 1.5 $PANDORA token.
Note: When the user’s wallet has enough $PANDORA tokens and mints a new NFT, the rarity of the newly minted NFT will have random characteristics.
Combining the features of two ERC-20 and ERC-721 standards helps the ERC-404 standard to have prominent advantages such as:
- Users can divide the value of NFTs and access them more easily.
- Facilitates instant buying and selling through token sales and increases immediate liquidity for NFTs.
- Facilitates the integration of DeFi into NFTs with features such as Swap, Derivative, Lending, etc., through tokens of the ERC-404 standard.
Overall, the ERC-404 standard effectively addresses liquidity issues in the NFT market, providing greater convenience compared to previous solutions like Fractional NFTs.
Although this standard offers many advantages, it still has significant disadvantages, including:
- Gas fees: Currently, the ERC-404 standard is not optimized for contracts, resulting in higher gas fees for buying and selling these assets compared to other standards. Typically, it consumes 45k gas, but with ERC-404, it consumes 100k gas, twice as much as other standards.
- Risk of losing NFTs: It’s easy to lose an NFT if you don’t hold at least one token. If you sell a token without noticing and the balance you hold falls below one token, your NFT will automatically be burned.
- Experimental nature: The standard is still in the testing phase and has not been officially released, so there are potential risks of hacking or attacks.
There are some basic information about the $PANDORA/NFT Pandora token:
- Token name/NFT name: Pandora
- Token ticker: PANDORA
- Blockchain: Ethereum
- Contract: 0x9e9fbde7c7a83c43913bddc8779158f1368f0413
- Total token/NFT supply: 10,000
Currently, the PANDORA token of the project only represents the new standard developed by the project and does not have any specific applications at the current stage.
Above is not all the information about this project, Wanna know more about this trend? Read at Theblock101.com!
Disclaimer: This article is for informational purposes only, not financial advice. Join the Bigcoinchat chat group to update the latest information about the market.
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