What is Ethereum’s DN-404 standard and how does it connect tokens and NFTs?
DN-404 is an experimental Ethereum token standard that aims to enhance the efficiency, scalability, and interoperability of tokenized assets, building upon its predecessor, ERC-404.
Developed as “Divisible NFT-404,” DN-404 was created to address the challenges faced by ERC-404, such as high transaction fees and limited scalability. This new standard leverages innovative consensus mechanisms and smart contract protocols to improve scalability, reduce costs, and enhance governance mechanisms for decision-making.
Unlike ERC-404, DN-404 enables seamless interoperability across different blockchain networks, facilitating frictionless asset transfers and cross-chain transactions. It prioritizes security and transparency through rigorous auditing protocols and introduces standardized tokenomics parameters for easier token creation and management.
The technical implementation of DN-404 involves two distinct contracts: a base ERC-20 token and a mirrored ERC-721 token. This dual-contract approach allows for efficient management of both fungible and non-fungible assets, expanding possibilities for DeFi, digital asset management, and blockchain applications.
The Bonsai Token (BONSAI) is an example of the DN-404 standard, designed to operate within the Lens Protocol ecosystem. This token functions as a hybrid of ERC-20 and ERC-721, allowing for the fractionalization of NFTs and providing new opportunities for content creators and users on social platforms.
While DN-404 offers advanced features and potential benefits, it remains experimental and has not undergone formal auditing. Interested parties are encouraged to proceed with caution and monitor its development for continued refinement and community support.
In conclusion, DN-404 represents a significant advancement in the tokenization of digital assets, offering a more efficient and versatile framework compared to its predecessor, ERC-404. By addressing limitations and introducing new capabilities, DN-404 has the potential to revolutionize the management and trading of tokenized assets in decentralized ecosystems.
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