The PANDORA token is part of an innovative platform for something considered impossible: the fractionalization of non-fungible tokens (NFTs). Until then, they were considered unitary, but they can be divided now.
This is only possible due to the ERC-404 standard. It works unofficially on Ethereum and makes it possible to split NFTs to trade them in fractions. Learn about this protocol and discover the difference it makes in transactions.
Trading Fractionalized NFTs
By definition, NFTs cannot be consumed, considered individualized. They have a kind of registry that identifies them as unique assets. Trading made with them is validated by smart contracts on the blockchain.
With the popularization of NFTs, the price of some has become quite inflated. To acquire original tokens, one of the solutions was to divide them into several parts, but there was a problem: the impossibility of purchasing fractionalized NFTs.
As most tokens were created based on the ERC-20 standard, while NFTs adopted the ERC-721, it was necessary to develop something that could combine the flexible standardization of the former with the registration of individuality of the latter. This gave rise to ERC-404.
ERC-404 standard
The ERC-404 standard is considered a hybrid, coming from two types of ERC protocols. The name refers to the 404 error, which occurs when users access a page that does not exist on the internet.
The idea of the standard was well received by the crypto community. Before him, non-fungible tokens were already fractionalized, but they completely depended on the original NFT and the holder. If this part of the token is burned, the entire NFT is eliminated.
Some users speculate that the PANDORA token's ERC-404 protocol is already being studied by the Ethereum development team. As it is open source, it is subject to change, without a defined standard for how it works.
PANDORA token system
The PANDORA token platform connects the NFT with digital wallets that hold fractions of the digital asset. Even if it is resold, the connection is updated for new holders, who will own a valuable share of an even more valuable NFT.
Previously, this was only possible for digital currencies. An example is Bitcoin, which can be sold in fractions, in 100 million units. The satoshi is the smallest part.
The PANDORA token system facilitates the process of fractionalizing NFTs, without running the risk of blocking the original token. From there, negotiation can be done individually. It is possible to buy and sell fractions of the digital asset like any other token.
PANDORA token
The tokenomics of the PANDORA token is different. Instead of having millions or billions of units, there are only 10,000 ERC-20 tokens, linked to 10,000 replicating NFTs.
The account works like this: if there are less than 1 PANDORA in your wallet, there will be no corresponding NFTs. However, if you purchase one of the replicating NFTs, you receive a PANDORA coin along with it.
As there is a limited quantity of the token, it is highly valued. Furthermore, due to ERC-404 technology, at launch, the price increased by more than 300%.
Learn more about cryptocurrencies
The technology behind the PANDORA token innovates by fractionalizing NFTs for trades. To keep up with the latest news on this and other tokens, as well as get investment tips, visit the NovaDAX blog!
