DN-404: Advancing Beyond ERC-404

As ERC-404's popularity soared, a critical challenge emerged: Ethereum blockchain operations became prohibitively expensive, highlighting the standard's inefficiency. Despite Ethereum's status as a frontrunner for on-chain operations and innovative standards, its Achilles' heel has been the limited opportunities for lower-capital users.

DN-404 (Divisible NFT-404) is basically a similar type of token to ERC-404, combining fungible and non-fungible tokens. It is claimed to be a more efficient implementation of co-joined tokens with full compliance to the original ERC-20 and ERC-721 standards.

DN-404 vs. ERC-404: Unveiling the Enhancements

DN-404 emerges as the refined version of co-joined tokens, boasting several advancements for greater efficiency and scalability:

• ERC-404 Framework: Utilizes a singular smart contract for both fungible and non-fungible token operations.

• DN-404 Innovation: Deploys dual smart contracts—a foundational contract for fungible tokens and a corresponding mirror contract for NFTs—streamlining transactions and integration with Decentralized Exchanges (DEXes). This structure not only facilitates seamless trading and minting/burning of mirrored NFTs but also ensures compliance with all NFT protocols, enhancing the trading experience.

Per insights from 0xCygaar, DN-404's ambition is to enable fractionalized NFT trading directly, eliminating the need for intermediaries.

Is There a Future Behind The New Standards?

Currently, ERC-404 and DN-404 dominate discussions within the Ethereum community, yet they await formal endorsement through future Ethereum Improvement Proposals (EIPs). Official recognition could catapult these standards to unprecedented prominence.

In their present state, these standards may resemble memecoins more than enduring innovations. Nonetheless, the trajectory of many NFT collections—from niche to community-centric success stories—suggests a promising horizon. Should co-joined tokens gain traction, early adopters could well reap rewards and airdrops from subsequent projects.