๐ Benefits of DN-404
Key advantages of the DN-404 implementation over a plain ERC-404 token:
Optimized code: The DN-404 code has been heavily optimized by experts like optimizoor, the creator of efficient standards like ERC-721A. This makes it cheaper and faster to mint and trade the tokens.
Modular approach: DN-404 uses separate ERC-20 and ERC-721 contracts that interact, rather than a single contract. This modular architecture follows best practices and reduces exploitation risks.
Retains ERC-721 compatibility: The mirrored ERC-721 contract in DN-404 remains fully ERC-721 compliant. This means it can still be used seamlessly with existing NFT platforms and protocols.
Fractions unlock liquidity: The fungible ERC-20 fractions can trade on decentralized exchanges. This provides built-in liquidity for NFT trades, addressing a major limitation of NFTs.
Novel fractionalization method: DN-404 enforces fractions by minting/burning ERC-721s algorithmically. This approach is more gas efficient than external fractionalization protocols.
In summary, the DN-404 implementation builds on the core innovation of ERC-404 but improves security, compatibility and liquidity. The modular architecture, optimized code and novel fractionalization method unlock additional benefits over a basic ERC-404 token.
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