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"Pandora's Box" surges nearly 30 times, is ERC-404 an innovative paradigm for NFTs?

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My picture, my token, will live and die together.

ERC-404 is a project that is easily overlooked at first glance.

For example, when we see the first project "Pandora's Box" of ERC-404, if we think "Isn't it just another blue box? Besides blue boxes, there are mountains of trash boxes", then it's game over...

For example, when most people talk about it as "coin and chart integration", if we think it's just another Solana peanut, but on Ethereum, then we're out of luck again...

We must have enough curiosity and patience for new projects, like Yang Zongwei carefully examining each project layer by layer to uncover the heart of the onion, in order to accurately distinguish whether it is spinning in existing and repetitive value logic or has a completely new perspective.

NFT Liquidity Greatly Optimized, And more

Actually, I personally believe that ERC-404 is the most interesting and liquidity optimization solution that has added the most possibilities to the NFT series so far, and it can even be said to be a paradigm innovation for NFT. Let's take the Pandora's Box as an example to quickly understand the mechanism of ERC-404:

The total amount of $PANDORA, an ERC-20 Token of Pandora's Box, is only 10,000. For every 1 $PANDORA purchased, you will automatically receive 1 Pandora's Box NFT. Of course, if you sell and hold less than 1 $PANDORA (such as selling 0.5 $PANDORA), the corresponding Pandora's Box NFT will be automatically burned.

Therefore, the maximum supply limit of ERC-20 coins is theoretically also the maximum supply limit of ERC-721 small images. However, this is only "theoretically" because it is almost impossible to reach the distribution where exactly 10,000 holders each hold 1 $PANDORA (correspondingly, there is also another theoretical limit situation where everyone's $PANDORA quantity is less than 1, and then there will be no NFTs appearing). Currently, the actual inventory of Pandora's Box is over 4,000.

This actually completely subverts the issuance and operation logic of an NFT series. First, deploying an LP is equivalent to opening the Mint link. Secondly, how many pictures will be minted in a 10K series, and how many will be left behind? For the former question, the gameplay of meme Token + small pictures is now becoming more and more common, with many possibilities. As for the latter question, ERC-404 actually decentralizes the curation rights to users - we optimistically expect that more popular or rarer pictures will be traded on OpenSea/Blur in the form of small pictures at a premium above ERC-20 Tokens, and sellers who receive the premium small pictures will continue to buy Tokens to try their luck with new pictures.

Users can also transfer their own ERC-20 Tokens between small accounts for Reroll. You may ask, why am I so excited about ERC-404 when the previous NFTfi application also supports this?

The original fragmented direction was completely opposite and destructive to NFT, which is logically unreasonable. For example, it's very simple. I pick one of the 10,000 paintings and lock it in a safe, and then everyone collects fragments of the safe key to open it. This is the previous fragmented logic. But what's the point? Holding the safe key (buying Token) is like a security guard without job security (if series one falls, I fall too), and there is no right to enjoy any benefits. The painting itself feels like it's being torn apart and downgraded piece by piece, not to mention that the liquidity of NFT itself is low, and only one of the series is put into the pool. How much water can there be in this pool?

ERC-404 directly shapes a "coin-graph symbiotic relationship", which can be traded on CEX and is also a subversion of existing NFTfi products. As long as an oracle is introduced, leveraging native NFTs based on ERC-404 is also easy (directly opening long and short positions on ERC-20 Tokens), and direct lending is also easy. It is no longer a matter of storing small images at a specified address, but can be operated directly based on ERC-20 Tokens.

From the perspective of NFT, interesting new gameplay can be expected in various fields such as games and art. For example, if I write a novel called "I am the Boss in the Crypto World", with 100 ERC-20 Tokens representing 100 chapters, is there a way to unlock all the chapters? Or will it be a novel that can never be completed because it is too expensive to read to the end?