# 📜 What is DN-404

DN-404 refers to an open source implementation that allows creating a hybrid ERC-20/ERC-721 token.

Key points:

* It uses two contracts - an ERC-20 "base" token and a "mirror" ERC-721 NFT.
* The ERC-20 handles most trading and tracks balances. It mints/burns the ERC-721s based on thresholds.
* The ERC-721 acts as a standard NFT, compatible with existing protocols.
* This allows fractional trading of NFTs natively on DEXes via the ERC-20, while still being able to use the ERC-721 on NFT marketplaces.
* Provides native fractionalization and increased liquidity for NFT projects.

In summary, it's an innovative implementation to create hybrid fractional NFTs with liquidity on both DEXes and NFT platforms.

[https://twitter.com/0xCygaar/status/1757136657286119916](https://twitter.com/0xCygaar/status/1757136657286119916)
