This article will summarize the recent developments of the ERC-404 protocol and Pandora, discussing the current issues faced by ERC-404 and the possible solutions.
(Table of Contents)
Improvements to ERC404
Miner introduces improved protocol ERC-X
ERC404Plus
What is Pandora doing?
Conclusion
Last week, ERC404 became one of the hottest topics, and Ethereum Gas remained high due to the successive launch of various ERC404 projects. During peak periods, the average swap fee was about 40-50 USDT.
However, this week, the popularity of ERC404 began to decline rapidly, with the leading project Pandora experiencing a decrease of about 52% from its peak. Other ERC404 projects also experienced earlier and larger declines, with some approaching zero.
Today, some projects announced the launch of an improved version of the ERC 404 protocol. Will the new iteration boost community confidence?
What are the issues with ERC404?
One of the most noticeable issues for users is the Gas problem. Compared to regular ERC20 token transactions, the cost is significantly higher, especially on networks with limited efficiency like Ethereum.
SlowMist Cosmos once stated that ERC404 has implemented a whitelist mechanism to prevent pairs/routers from frequent NFT-related issues. It only needs to handle FT transactions since the accounts are stored in the smart contracts and cannot disappear. On the other hand, because ERC404 is a new mechanism, there are potential security risks that still need to be tested over time, although there haven’t been large-scale attack incidents.
Miner has introduced a new protocol called ERC-X based on ERC404 and released the first token MINER built on ERC-X with a total supply of 100,000 TOKEN/NFT. Miner stated that ERC-X is an optimized experimental standard that includes multiple standard functions from ERC20, ERC404, ERC721, ERC721A, ERC721Psi, ERC1155, and ERC1155Delta.
Key improvements include Gas-friendliness, enabling high token supply demands that were previously incompatible with ERC404. Initially, MINER’s total supply was planned to be set at 1 million, but Metamask kept crashing as it couldn’t handle purchases of more than 30,000 NFT at once. Therefore, the supply was limited to 100,000.
Bitcoin Cats, a blockchain gaming project, proposed an optimized protocol called ERC404Plus for ERC404. ERC404Plus allows users to choose more flexibly between NFT and FT and significantly reduces the Gas required for transactions and transfers.
BitcoinCats404 is the first asset built using the ERC404Plus protocol, and it can only be minted by bridging Ordinals’ BitcoinCats NFT before the deadline. The distribution and sale of converted NFTs will start on February 16 and can be traded on platforms like Uniswap, Blur, and OpenSea.
In addition to the above information, Bitcoin Cats has not disclosed more details about the features, but it can be seen that the core improvement direction is still focused on reducing transaction Gas.
Pandora, the leading project of ERC404, has recently made efforts to maintain token liquidity. For example, today, Pandora Labs announced Wasabi Protocol as its 404 ecosystem partner. Wasabi is an on-chain leverage trading protocol that allows users to take long or short positions on PANDORA with up to 3x leverage.
Yesterday, Pandora also locked a significant amount of liquidity, including 5,623 WETH and 725 PANDORA tokens, with ETH valued at around $14 million.
Most importantly, Pandora announced a series of improvement directions, including:
– Systematic improvement of ERC404 design and implementation to be more standardized
– Increased support for pools with permanent token IDs
– Improved branching logic to reduce Gas costs for certain common transfer scenarios
– Improved integration capabilities and issuance of external protocols
– Implementation of token permissions through support for EIP-2612
Pandora stated that after completing these improvements, it will be better able to integrate with external protocols and achieve more use cases.
While the concept of a tokenized world is not new to Pandora, the explosion of ERC404 proves the value of its implementation approach. After solving the pain point of high Gas, it is expected to support the realization of value through more use cases and achieve secondary growth.
[Image]
Related Reports:
– Pandora Soars to Nearly £33,000! Official Announcement: Etherscan Will Support “ERC-404 Contract”
– $Pandora Breaks Through £31,000! Binance and OKX Rapidly List ERC-404 Market, SlowMist Warns: Token Standard is Not Yet Mature..
– Interpreting the ERC-404 Protocol Revolution through Pandora’s Popularity