SOL - NFTs Get Divided: New Standard Promises Fractional Ownership | Benzinga
With the launch of the experimental hybrid token Pandora on Feb. 2, a new and unaudited mixed ERC20/ERC721 implementation has taken the non-fungible token (NFT) world by storm.
Called the ERC-404 standard, this unofficial Ethereum standard mixes two well-established Ethereum standards to introduce fractional ownership to NFTs and potentially solve the liquidity problem facing NFTs today.
In essence, Pandora's ERC-404 combines the fungibility of the ERC-20 standard that governs token issuance on the Ethereum blockchain, with the uniqueness afforded by the ERC-721 standard to provide a new standard for creating semi-fungible tokens that support NFT fractionalization.
As a result, this ERC-404 standard could potentially spur the financialization of NFTs in the future, especially if existing ERC-721 NFT collections can be wrapped into ERC-404 interchangeable wrapped tokens.
The Promise Of Semi-Fungibility: The Pandora project that has led to the creation of a new class of ERC-404 tokens in turn uses two assets: the ERC-20 token (PANDORA) and an ERC-721 token representing unique NFTs in the Replicants collection.
For every PANDORA ERC-404 token purchased, buyers automatically receives a Replicants NFT in their wallet, with each NFT also having a rarity depicted by the color of the NFT box (red being most rare and green being most common).
When the PANDORA token is sold, the ...