DN-404: Solving Gas Complications and Enhancing User Demand
A group of pseudonymous developers recently introduced an unofficial Ethereum-based cryptocurrency called ERC-404, aiming to merge crypto and NFTs. The initial token under this standard, Pandora, experienced a remarkable surge of over 12,000% in less than a week before plummeting.
Despite its potential to revolutionize fractionalized NFTs and enhance liquidity for digital collectibles represented by virtual currencies, ERC-404 faced challenges related to gas optimization. During Pandora’s debut, Ethereum transaction fees skyrocketed.
In response to these issues, a team of developers created DN-404 as an improvement over ERC-404. This new design splits the token and NFT elements into two separate contracts and reduces transaction costs by 20%. By leveraging the ERC-20 token code at its core and incorporating a mirror ERC-721 structure for NFT functionality, DN-404 offers a more efficient and reliable solution.
DN-404: A Standard for Protocols
DN-404 is not a project itself but rather a standard for protocols to build upon. Developed by Cygaar and other pseudonymous individuals, this open-source initiative is currently in its alpha stage and has not undergone auditing.
Cygaar explained that the goal of DN-404 was to create a token standard that could function as an NFT with built-in fractionalization. This unique feature allows users to trade portions of NFTs without the need for intermediaries.
To learn more about how DN-404 works, you can refer to Cygaar’s Twitter thread here.
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