The \u201cdivisible NFT\u201d standard aims to be an NFT with native fractionalization built in.<\/p>\n
Another day brings another experimental Ethereum token standard.<\/p>\n
After the unexpected launch \u2013 and hype \u2013 of the ERC-404 token standard, a team of Ethereum <\/a>developers launched DN-404 today, which aims to fix the former\u2019s inefficiencies.<\/p>\n \u201cOur end goal was to create a token standard that could act as an NFT with native fractionalization built in,\u201d wrote<\/a> pseudonymous developer Cygaar, who appears to have led the team of six developers.<\/p>\n Cygaar wrote a lengthy thread today revealing what the team considers to be ERC-404\u2019s flaws and how their new token standard addresses them.<\/p>\n <\/p>\n Building on ERC-404\u2019s ability to allow users to swap portions of their NFTs<\/a> without a middleman, DN-404 uses two contracts: a \u201cbase\u201d ERC-20 token and a \u201cmirror\u201d ERC-721.<\/p>\n According to Cygaar, most trading will take place on the base token. Traders can think of these as fractions of the NFTs, with their main selling point being that they will enable immediate trading on DEXs like Uniswap. When a user has at least one base unit (10^18) of tokens, they will automatically receive an NFT, a \u201cmirror\u201d ERC-721.<\/p>\n Instant trading on NFT exchanges and decentralized exchanges adds liquidity to NFT projects, transforming DN-404 into \u201can unlock we have never seen before,\u201d said Cygaar.<\/p>\n