Ethereum

2024

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DN-404 developers aim to solve gas complications inherent in ERC-404 but still regard the effort as a “gimmick” with user demand. 
A new, unofficial Ethereum-based cryptocurrency design dubbed ERC-404 emerged on Feb. 2 from a group of pseudonymous developers seeking to combine crypto and NFTs. Pandora, the first token under this standard, surged over 12,000% in less than a week and increased from $250 to over $30,000 before <a href="https://crypto.news/erc-404-sector-collapses-by-33-after-rapid-surge/" target="_blank" rel="noreferrer noopener">plummeting</a>.&nbsp; 
The experimental effort sought to revolutionize fractionalized NFTs and improve liquidity for digital collectibles represented by virtual currencies. 
However, ERC-404 arrived with issues primarily around gas optimization, with reports of Ethereum transaction fees skyrocketing the same week as Pandora’s debut. The <a href="https://crypto.news/trader-turns-1-eth-to-59k-in-hours-with-new-erc-404-token/" target="_blank" rel="noreferrer noopener">ERC-404</a> creators hinted at updates and improvements, but a group of developers launched their iteration to address concerns. 
 You might also like: <a href="https://crypto.news/erc-404-sector-collapses-by-33-after-rapid-surge/"> ERC-404 sector collapses by 33% after rapid surge </a> 
<h2 class="wp-block-heading" id="dn-404-versus-erc-404">DN-404 versus ERC-404</h2> 
DN-404 was created to fix inefficiencies with ERC-404 by splitting the token and NFT elements into two separate contracts. Developers said DN-404 also slashes transaction costs by 20%. 
The design leverages the ERC-20 token code at its center and a mirror ERC-721 structure for NFT functionality, whereas ERC-404 mixed both sides in a single contract. ERC-404 created a possibility of an NFT being split apart and returning differently from its original state. 
<blockquote class="wp-block-quote"> 
 Our end goal was to create a token standard that could act as an NFT with native fractionalization built in. This was a unique unlock of ERC-404 that allowed users to trade portions of NFTs without any middleman. <cite><a href="https://x.com/0xCygaar/status/1757136657286119916?s=20" target="_blank" rel="noreferrer noopener">Cygaar</a>, DN-404 developer</cite>
</blockquote> 
One of the pseudonymous developers, Cygaar, emphasized the DN-404 is a standard for protocols to build rather than a project itself. The open-source <a href="https://github.com/Vectorized/dn404" target="_blank" rel="noreferrer noopener">GitHub</a> repository is in its alpha stage and has not yet been audited.&nbsp; 
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 Read more: <a href="https://crypto.news/new-ethereum-standard-erc-404-gains-steam-first-token-skyrockets-12000-in-days/"> New Ethereum standard ERC-404 gains steam, first token skyrockets 12,000% in days </a>

Experimental Ethereum ERC-404 standard spurs competitor

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