A new non-fungible token standard, DN404, or “Divisible NFT 404,” has been introduced, challenging the ERC-404 standard with its innovative approach.
DN404, designed to integrate the functionalities of both ERC-20 and ERC-721 tokens, facilitates fractional ownership of NFTs, potentially transforming market liquidity and accessibility.
This hybrid standard is poised to enable more flexible and efficient transactions within the NFT space, allowing users to own and trade parts of an NFT, according to the developer behind DN404.
DN404 is still in its experimental phase and has not yet undergone formal auditing, potential adopters are advised to proceed with caution due to inherent risks associated with untested blockchain innovations.
“ERC404 took the crypto world by storm over the past few days, but it doesn’t follow existing standards, is inefficient, and breaks at certain edge cases,” pseudonymous developer cygaar said on X (formerly Twitter).
Ethereum gas fees have soared to an eight-month high recently due to the ERC-404 craze.
Like DN404, ERC-404 is an experimental and unofficial Ethereum token standard that has recently caught the attention of the crypto community. This standard is designed to combine the features of both fungible and non-fungible tokens (ERC-721), creating what is referred to as semi-fungible tokens.
Last week, Pandora, the first of the ERC-404 experiment, rose 12,000% in just one week, surpassing the US$32,000 mark.