Pandora is a next-generation decentralized ecosystem based on the dual-token DEX, launch platform, and NFT. Its token has been listed on Uniswap. The protocol addresses the liquidity issue of NFTs and can be used for developing star card games and staking tokens for rewards. This article, sourced from rick awsb on X platform, was compiled, translated, and written by BlockBeast.
Table of Contents:
Project Analysis
1. Pandora is a 10k NFT project.
2. The ERC404 protocol solves an important issue of NFTs: liquidity.
3. Pandora has been released for less than a week, and its current liquidity has reached $9 million.
4. The ERC404 protocol is completely open-source.
5. Developers have brainstormed various gameplay options.
This may be the most significant NFT protocol innovation on Ethereum in the past two years. Pandora, a dual-token project on Ethereum developed by a former Coinbase engineer, @Pandora_ERC404, is gaining popularity in the market. It is somewhat similar to the project by @deeznuts_solana on Solana, but unlike Nuts, Pandora’s tokens were listed on Uniswap from the beginning. It corresponds to 10k Pandora ERC20 tokens. It is the first project developed based on the ERC404 protocol.
a. Buying a $Pandora token means an NFT is minted and automatically appears in the wallet. Selling the token means the NFT is burned. Transferring the token is also a process of burning and reminting the NFT. However, transferring the NFT itself does not result in burning.
This means you can sell your NFT to the liquidity pool on Uniswap without having to list it and wait.
b. This also means that when purchasing tokens, you can see the rarity of the NFT. If you want to exchange for a rarer NFT, you can transfer the tokens to a new wallet, effectively re-drawing to obtain a rarer NFT. Therefore, continually consuming Gas Fees can help get rarer NFTs.
Does this mean that during the early stages of NFT opening, continuously flipping NFTs at high gas fees for rare attributes is possible? At the same time, selling NFTs with rare attributes, buying tokens to buy back floor NFTs, and then mining rare attributes could become an arbitrage mechanism. Can GameFi projects interact with such a mechanism and in-game mechanics?
c. The project has not yet released any graphics. Unlike any other liquidity fragmentation methods, ERC404 combines the tokens into one but can still be bought and sold separately.
The project was co-founded by @maybectrlfreak and @0xacme, a former Coinbase engineer. It had a fair launch and currently has a fully diluted valuation of $26 million. Developers can use the protocol to release their own projects or develop the protocol further based on existing protocols.
a. Some developers have suggested developing star card games based on this mechanism, where collectors can use continuous token transfers to obtain new star cards and the first player to collect a complete set wins the game.
b. Other developers have suggested allowing token holders to stake their tokens for rewards, especially for those who do not hold enough tokens to obtain NFTs. By staking, they can acquire NFTs in the future, which can reduce dumping pressure.
Personally, I believe that the combination of native tokens and asset gameplay adds another dimension instantly. We may soon see more creativity in the future, regardless of investment. It is worth paying attention to innovation.
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