Original | Odaily Planet Daily

Author | Nan Zhi

Last week, ERC404 became one of the hottest topics, and the Ethereum Gas remained high due to the successive launch of various ERC404 projects, with an average swap fee of about 40-50 USDT during peak periods. However, this week, the heat of ERC404 began to decline rapidly. The leading project PANDORA fell by about 52% from its peak, while other ERC404 projects experienced earlier and larger declines, with some almost approaching zero.

Today, some projects announced the launch of an improved version of the ERC404 protocol. Will the new iteration boost community confidence? Odaily Planet Daily will organize the new protocol in this article and summarize the recent progress of Pandora.

Improvement of ERC404

What are the problems with ERC404? The most intuitive problem for users is the Gas issue. Compared with the conventional ERC20 token transactions, the fees are much higher, especially on networks with limited performance such as Ethereum. SlowMist Cosine once stated, "ERC404 also introduced a whitelist mechanism to allow some pairs/routers to handle FT transactions without the need to frequently deal with NFT. As long as the account is in the contract, it will not disappear." On the other hand, because ERC404 is a new mechanism, there are potential security risks. Although there have been no large-scale attack incidents so far, it remains to be tested over time.

Miner introduces the improved protocol ERC-X

Miner has launched a new protocol ERC-X based on ERC404, and also 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 with the following features and functions:

• Versatility: Multiple standard functions can be used in ERC-X, including ERC20, ERC404, ERC721, ERC721A, ERC721Psi, ERC1155, and ERC1155Delta.

• Low Gas: ERC-X has high Gas efficiency and can be fully expanded according to the project's scale.

_ (Odaily note: Previously, ERC404 could not adapt to high total token demand because high total supply means that the price of a single coin is not high, but ERC404 will cause high Gas on a per-unit basis.)_

• Comprehensiveness and variability: All standard functions of ERC20 are reintroduced. With a few changes, the NFT corresponding item of the token can be displayed as ERC721 or ERC1155.

The most crucial improvement is its Gas friendliness, which achieves the high token total demand that ERC404 could not adapt to originally. Miner stated that the initial plan was to set the total supply of MINER at 1 million, but Metamask kept crashing because it could not handle a purchase of more than 30,000 NFTs at once, so the decision was made to limit the supply to 100,000.

ERC404Plus

The Bitcoin chain game project Bitcoin Cats stated on X platform that it has proposed an optimized protocol for ERC404, named ERC404Plus. ERC404Plus allows users to flexibly choose between NFT and FT, and significantly reduces the Gas required for transactions and transfers.

BitcoinCats404 is the first asset created using the ERC404Plus protocol and can only be minted by bridging Ordinals' BitcoinCats NFT before the deadline. The converted NFT distribution and sale will start on February 16, and the converted NFT can be traded on platforms such as Uniswap, Blur, and OpenSea.

_ (Odaily note: BitcoinCats NFT is a BTC NFT project released by Bitcoin Cats in early January, and there is a risk of early holders selling off. Readers are advised to participate cautiously.)_

In addition to the above information, Bitcoin Cats has not disclosed more detailed feature details, but the core improvement direction is still to reduce transaction Gas.

What is the leading project Pandora doing?

The leading project Pandora of ERC404 has recently made certain efforts in maintaining token liquidity. For example, today, Pandora Labs announced that Wasabi Protocol has become its 404 ecological partner. Wasabi is an on-chain leverage trading protocol that allows users to long or short PANDORA with up to three times leverage.

Yesterday, Pandora also locked a large amount of liquidity for tokens, including 5623 WETH and 725 PANDORA, with the value of ETH being approximately $14 million.

Most importantly, Pandora announced a series of improvement directions, including:

• Systematic improvement of ERC404 design and implementation to be closer to standardization;

• Addition of support for permanent token IDs in pools;

• Improved branching logic to reduce Gas fees for certain common transfer scenarios;

• Improved aggregation function 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.

Conclusion

Although the concept of a token and coin integrated system is not new to Pandora, the popularity of ERC404 proves that its implementation approach has certain value. After solving the pain point of high Gas, it is expected to support the discovery of value through more use cases.

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