SNFT ERC 404
Is it a Coin or is it an NFT? It is both!
Last updated
Is it a Coin or is it an NFT? It is both!
Last updated
ERC404s are a new and experimental token standard that developers launched on Ethereum in early February 2024. The standard combines the fungibility of ERC20s with the uniqueness of ERC721 NFTs.
The ERC-404 token standard is an experimental Ethereum token standard that aims to combine the characteristics of fungible tokens (ERC-20) and non-fungible tokens (ERC-721). It introduces a hybrid model that allows for both fungibility and non-fungibility within a single token standard, making it possible to fractionalize NFTs directly within the Ethereum network.
Key Features of ERC-404: Hybrid Token Model: ERC-404 merges features from ERC-20 and ERC-721, enabling tokens to act as both currency (fungible) and unique assets (non-fungible) depending on their use and ownership. Fractional Ownership: Unlike traditional NFTs, which must be sold in whole units, ERC-404 allows NFTs to be divided into fractional shares. This is managed through a "mint-and-burn" mechanism where fractional tokens can be created and destroyed based on ownership changes. Improved Liquidity: By enabling fractional ownership, ERC-404 makes it easier to trade NFTs, increasing their market liquidity. This means users can buy and sell fractions of high-value NFTs, making these assets more accessible. No Third-Party Trust Issues: ERC-404 eliminates the need for third-party protocols to manage fractionalization, reducing the risks associated with trusting external entities to secure NFTs. Applications: Digital Art and Collectibles: Fractionalizing high-value digital art and collectibles makes it possible for more people to own and trade pieces of valuable assets. Decentralized Finance (DeFi): By integrating fractional NFTs into DeFi protocols, ERC-404 can facilitate new financial applications such as using NFTs as collateral for loans or participating in yield farming. Gaming: In-game assets can be represented as ERC-404 tokens, allowing players to trade fractional shares of rare items, enhancing gameplay and monetization options. Challenges: Experimental Status: ERC-404 is not yet an official Ethereum token standard and is still undergoing development and testing. This means there are potential security risks and technical challenges that need to be addressed. Market Adoption: Being a new and experimental standard, ERC-404 has limited adoption compared to established standards like ERC-20 and ERC-721. Its long-term success will depend on wider acceptance and integration by the community and platforms. Gas Fees: The advanced communication procedures required for managing both fungible and non-fungible aspects can lead to higher transaction costs on the Ethereum network.
On the comparative range, the ERC-404 has a number of unique technical features that make it stand out against the originals it was developed based on, such as:
EIP (Ethereum Improvement Proposal) – In terms of EIP, ERC-404 lacks any, while both ERC-20 and ERC-721 have proposals for adoption through the EIP-20 and EIP-721, respectively.
Asset class – As an asset class, the ERC-404 is a fractionalized digital asset, while ERC-20 is a specific type of fungible digital asset, and the ERC-721 is a class of unique digital assets.
Token IDs – There are no known token IDs for ERC-404 at this stage, just like for the ERC-20, which has none, while the ERC-721 boasts a unique token ID for each asset.
Since the ERC-404 is still under development and is classified as an experimental asset type, the technical limitations it can face in the future upon large scale application are still to be discovered.
ERC721 + ERC20 = ERC404 ,
Same contract with fixed supply
You can trade it in any DEX with any other ERC20 token, or add liquidity
You can buy or sell part of a token, but: You will only get an ERC721 NFT token when you buy a full token
For example: buy 1 ERC20 get ERC721, if you buy 0.99 ERC20 you will not get NFT token but get tokens value,
The token is burned when you sell and the token is minted when you buy, what changes is the token ID but the supply remains the same
You can trade the NFT token in markets like opensea as well
To help our community and users learn about these features, We minted our ERC404 test token "S4" and another ERC20 token "P4: to add to uniswap liquidity pool,
P4 Tokens has been added to our faucet to allow users to get it for free and try trading the new ERC404 token :
Step1: Go to P4 Faucet and claim 3000 P4 for free
Step2: Go to Uniswap DEX and swap your P4 for SNFT-404 "S4", Price 1000 P4/S4, We recommend purchasing at least a full S4 token to try receiving your NFT token also
Step3: Try buying and selling parts of S4 Token. And add some liquidity to our pool
Step4: list your S4 token in opensea and trade it.
Note!! that there is no actual value to this token, it is merely experimental. don't trade it with real money.
