A group of crypto developers have released their alternative implementation of the experimental ERC-404 token standard in an attempt to achieve the same results in a more efficient manner.
The ERC-404 token standard was launched on February 2 by the Pandora team, with the aim of combining ERC-20 tokens and NFTs. The broad idea was to provide native fractionalization of NFTs, by allowing them to be split apart and put back together at will, although this leads to some potentially interesting side effects, such as that the recurring NFT may be different is.
However, the tokens had a significant impact on Ethereum’s transaction fees, causing them to rise across the board. In response, this rival group of developers thought they could create a more efficient implementation, one that would have less impact.
Meet DN-404
On February 12, the developers released their version, called DN-404, which they estimation results in a 20% reduction in the impact of transaction costs.
“The premise of ERC-404 was to create a single contract that can act as both a fungible and non-fungible token. However, this cannot be done without introducing exploits and violating standards,” said one of the developers, who is pseudonymous. known as cygar. “Our approach instead uses two contracts: a ‘base’ ERC-20 with a ‘mirror’ ER-C721.”
Breaking the two elements into separate, more standard contracts can reduce problems. “The result is that everything returns to the way it should be. The ERC-721 and ERC-20 contracts both exist and both function as standalone products, but under the hood they run on shared 404 rails.” added stopanother pseudonymous developer behind the project.
The developers noted that the code is unverified and therefore poses some risk. Unlike the ERC-404 initiative, they did not launch their token-NFT hybrid with this code.
“I want to be clear: while I had a lot of fun building this, I still see 404 as more of a gimmick than anything else. However, the space has shown a desire to continue using it, and so we decided it was worth creating an implementation that was efficient and safe to use,” said Quit.
