Competitor spurred by groundbreaking Ethereum ERC-404 standard
A group of developers known as DN-404 are working to address the gas complications associated with ERC-404, an Ethereum-based cryptocurrency design. While some view this effort as a “gimmick,” there is a demand from users to solve these issues.
ERC-404, which combines crypto and NFTs, was introduced on February 2. The first token under this standard, Pandora, experienced a massive surge of over 12,000% in less than a week, going from $250 to over $30,000 before experiencing a sharp decline.
The goal of ERC-404 was to revolutionize fractionalized NFTs and enhance liquidity for digital collectibles represented by virtual currencies. However, it faced challenges related to gas optimization, as Ethereum transaction fees skyrocketed during the same week as Pandora’s debut. The creators of ERC-404 hinted at updates and improvements, but a group of developers launched DN-404 to address these concerns.
DN-404 was specifically designed to address the inefficiencies of ERC-404 by separating the token and NFT elements into two distinct contracts. The developers claim that DN-404 also reduces transaction costs by 20%. This design leverages the ERC-20 token code as its core, along with a mirror ERC-721 structure for NFT functionality. In contrast, ERC-404 combined both aspects in a single contract, which created the possibility of an NFT being split apart and returning in a different state.
One of the developers, known as Cygaar, emphasized that DN-404 is a standard for protocols to build upon, rather than a standalone project. The open-source GitHub repository for DN-404 is currently in its alpha stage and has not yet undergone an audit.
In summary, the developers of DN-404 are working to solve the gas issues associated with ERC-404, an Ethereum-based cryptocurrency design. This effort is driven by user demand, although some still view it as a “gimmick.” DN-404 separates the token and NFT elements into separate contracts, reducing transaction costs by 20%. The developers aim to create a standard for protocols to build upon, and the project is currently in its alpha stage on GitHub.
