fugoji

What is ERC-404? ERC-404 (at least the legacy version) is kind of a monster. It combines ideas from both fungible and nonfungible tokens to create something entirely different. It creates a sort of hybrid of ERC-20 and ERC-721 with special rules. In some ways, it allows fractional ownership of an NFT. Because it combines a fungible and nonfungible, the standard allows NFT collections to have fungible liquidity on a dex which has caught the attention of devs across many chains recently. kucoin.com/learn/web3/what-i… What I dislike about ERC-404: ERC-404 seems to create some unpredictable behaviors which makes me doubt its usefulness in its current state, but I think it is possible to make some really interesting products with it after a few improvements. ERC-404 annoyed me at first because it kind of destroyed the whole definition of fungible by mapping a fungible token to every NFT but the mapping is not obvious. Transferring part or all of a Pandora fungible token to another address could result in burning an NFT you own. If you have multiple NFTs, it could burn one you would rather keep. It requires shuffling your NFTs around to different wallets in order to save the rare ones and "reroll" the more common ones. The newer iterations of ERC-404 can now "bank" metadata and use a FIFO approach to assigning the next NFT to mint. I still think though that having distinct fungible and non fungible states for the collection would do a better job solving the problem of NFT fractional ownership and fungible liquidity by removing a lot of confusion. What I like about ERC-404: I like the amount of hype it has created recently. People seem excited that it allows fungible liquidity for NFTs as well as helps to set a "floor price" for the collection. I think it will be even more interesting if/when implemented for a complete unique set of NFTs. I see many opinions out there that ERC-404 allows for fractional ownership of NFTs. I suppose this is the case because if you own .1 Pandora tokens, you can add .9 more and then own a Pandora NFT; however, you don't have any guarantees on which you own so this does not seem exactly correct to me. I think fractionalized ownership using NFTs is an interesting problem to solve. In my opinion it would also be easier to build a better fractionalized ownership solution using Scrypto with my own custom logic using Radix's native resources. The one major question I have had while researching ERC-404: Why not just make distinct fungible and nonfungible behaviors/states for the tokens and create a simple smart contract that will facilitate an easy transition between these states that a user can call when it is convenient for them? IMO this is only going to be useful long term for things like RWA if we have safe and predictable behavior. I love to see innovation in the space and it has been a lot of fun researching this and building a version of it with @Scrypto_Lang . RRC-404 content to follow ASAP! 🫡 ERC-404 github.com/0xacme/ERC404 github.com/Pandora-Labs-Org/… ERC-404 v2.0 github.com/Pandora-Labs-Org/…