After the ERC404 project plummeted across the board, the improved protocol came on the scene. Can it bring about a second value discovery?

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Original | Odaily Odaily

Author | Nan Zhi

Last week, ERC 404 became one of the hottest topics, and Ethereum Gas also remained high due to the successive launch of various ERC 404 projects. The average Swap fee during peak periods was about 40 ~ 50 USDT. However, this week, the popularity of ERC 404 began to decline rapidly. The leading project PANDORA fell by about 52% compared with its peak. The remaining ERC 404 projects experienced earlier and larger declines, and some of them almost reached zero.

Today, some projects announced the launch of an improved version of the ERC 404 protocol. Can the new iteration boost community confidence? Odaily Odaily will sort out the new protocol and sort out the recent progress of Pandora in this article.

Improved ERC 404

What are the problems with ERC 404? Among them, the most intuitive one for users is the Gas problem. Compared with conventional ERC 20 token transactions, the cost is much higher, and it is more prominent on networks with limited performance such as Ethereum. Slow Mist Cosine once said: "ERC 404 has also developed a whitelist mechanism so that some pairs/routers do not have to deal with NFT frequently. They can just handle the FT transaction. Anyway, the accounts are in the contract and cannot disappear." On the other hand, , because ERC 404 is a new mechanism and has potential security risks. Although there have been no large-scale attacks yet, it will take time to test.

Miner launches improved protocol ERC-X

Miner launched a new protocol ERC-X based on ERC 404, and also released the first token MINER based on ERC-X, with a total supply of 100,000 TOKEN/NFT. Miner said that ERC-X is an optimized experimental standard with the following features and functions:

  • Versatility : Functions from multiple standards can be used in ERC-X, including ERC 20, ERC 404, ERC 721, ERC 721 A, ERC 721 Psi, ERC 1155 and ERC 1155 Delta, etc.

  • Low Gas : ERC-X has high Gas efficiency and can be fully scalable according to the scale of the project.

(Odaily Note: Previously, ERC 404 could not be adapted to high-volume tokens, because high total volume means that the price of a single currency is not high, but ERC 404 will cause high gas per unit quantity)

  • Comprehensiveness, variability : All standard features of ERC 20 are reintroduced. With a few line changes, the token's NFT counterpart can appear as ERC 721 or ERC 1155.

The most critical improvement is its gas friendliness, which meets the high total token demand that the original ERC 404 could not adapt to. Miner said it originally planned to set the total supply of MINER at 1 million, but Metamask kept crashing because it couldn't handle buying more than 30,000 NFTs at once, so it decided to limit the supply to 100,000.

ERC 404 Plus

Bitcoin chain game project Bitcoin Cats issued a document on the X platform and proposed an optimization protocol for ERC 404 called ERC 404 Plus. ERC 404 Plus gives users more flexibility to choose between NFTs and FTs, and greatly reduces the gas required for transactions and transfers.

BitcoinCats 404 is the first asset created using the ERC 404 Plus protocol and can only be minted by bridging Ordinals’ BitcoinCats NFT before the deadline. The distribution and sale of the converted NFT will start on February 16, and the converted NFT can be traded on Uniswap, Blur, OpenSea and other platforms.

(Odaily note: BitcoinCats NFT is a BTC NFT project launched by Bitcoin Cats in early January. There is a risk of selling pressure from early holders. Readers are advised to participate with caution.)

Apart from the above information, Bitcoin Cats has not released any further feature details, but it can be seen that the core improvement direction is still to reduce transaction gas.

What is Pandora doing?

Pandora, the leading ERC 404 project, has recently done some work in maintaining token liquidity. For example, today, Pandora Labs announced that Wasabi Protocol has become its 404 ecological partner. Wasabi is an on-chain leveraged trading protocol that allows users to long or short PANDORA with a maximum three times leverage .

Yesterday, Pandora also locked a large amount of liquidity for the tokens, including 5,623 WETH and 725 PANDORA, of which the value of ETH is approximately US$14 million.

Most importantly, Pandora announced a series of improvements, including:

  • Systematically improve ERC 404 design and implementation to move closer to standardization;

  • Add a pool that supports permanent token IDs;

  • Improved branching logic to reduce gas costs in some common transfer situations;

  • Improved integration capabilities and release of external protocols;

  • Enables token licensing through support for EIP-2612.

Pandora said that after completing these improvements, it will be able to better interface with external protocols and enable more use cases.

in conclusion

Although the concept of integrating graphics and currency is not proposed by Pandora for the first time, the popularity of ERC 404 proves that its implementation idea has certain value. After solving the pain point problem of high gas, it is expected to support the secondary discovery of value through more use cases.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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