What is Pandora? Innovation in Fractionalized NFT tokens

1. What is Pandora?

Pandora is the project behind the development of the new ERC-404 standard on the Ethereum network. The ERC-404 standard combines features of both ERC-20 (tokens) and ERC-721 (NFTs) standards, addressing liquidity issues for NFT projects.

For the Pandora project, there will be a total supply of 10,000 $PANDORA (ERC-20) tokens and Pandora NFTs (ERC-721). When a user purchases 1 $PANDORA, their wallet will automatically mint 1 Pandora NFT, and vice versa, when a user purchases 1 Pandora NFT, their wallet will automatically mint 1 $PANDORA.

This system allows users to gradually accumulate tokens to acquire NFTs or to fractionally divide NFTs for sale. Fractionalization enables easier access for newcomers or those with limited capital, thereby increasing liquidity for NFTs and expanding the potential for integrating DeFi into NFTs.

2. ERC-404 mechanism

In the Pandora project, the design of ERC-404 will have a total combined supply of 10,000 tokens and NFTs. When a user purchases 1 NFT, their wallet will automatically mint 1 $PANDORA token, and vice versa, when a user purchases 1 $PANDORA token, their wallet will automatically mint 1 Pandora NFT.

Example:

Buying 1 $PANDORA token → The wallet will mint 1 Pandora NFT → The wallet will hold: 1 $PANDORA token and 1 Pandora NFT.
Buying 0.5 $PANDORA token → The wallet will hold only 0.5 $PANDORA token and will not mint any NFT.
Selling 1 $PANDORA token → Burns 1 Pandora NFT.
Selling 1 Pandora NFT → Burns 1 $PANDORA token.
Buying 1.5 $PANDORA token → The wallet will mint 1 Pandora NFT and hold 1.5 $PANDORA token.

Note: When the user's wallet has enough $PANDORA tokens and mints a new NFT, the rarity of the newly minted NFT will have random characteristics.

3. Pros and cons of ERC-404

3.1. Pros

Combining the features of two ERC-20 and ERC-721 standards helps the ERC-404 standard to have prominent advantages such as:

Users can divide the value of NFTs and access them more easily.
Facilitates instant buying and selling through token sales and increases immediate liquidity for NFTs.
Facilitates the integration of DeFi into NFTs with features such as Swap, Derivative, Lending, etc., through tokens of the ERC-404 standard.

Overall, the ERC-404 standard effectively addresses liquidity issues in the NFT market, providing greater convenience compared to previous solutions like Fractional NFTs.

3.2. Cons

Although this standard offers many advantages, it still has significant disadvantages, including:

Gas fees: Currently, the ERC-404 standard is not optimized for contracts, resulting in higher gas fees for buying and selling these assets compared to other standards. Typically, it consumes 45k gas, but with ERC-404, it consumes 100k gas, twice as much as other standards.
Risk of losing NFTs: It's easy to lose an NFT if you don't hold at least one token. If you sell a token without noticing and the balance you hold falls below one token, your NFT will automatically be burned.
Experimental nature: The standard is still in the testing phase and has not been officially released, so there are potential risks of hacking or attacks.

4. Tokenomic

There are some basic information about the $PANDORA/NFT Pandora token:

Token name/NFT name: Pandora
Token ticker: PANDORA
Blockchain: Ethereum
Contract: 0x9e9fbde7c7a83c43913bddc8779158f1368f0413
Total token/NFT supply: 10,000

Currently, the PANDORA token of the project only represents the new standard developed by the project and does not have any specific applications at the current stage.

5. Development Team

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6. Partners and Investors

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7. Roadmap

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8. Conclusion

Pandora is the project behind the development of the new ERC-404 standard on the Ethereum network. This new token standard aims to effectively address the liquidity issues of NFTs and make it easier to apply DeFi to NFTs. However, being a new standard in the testing phase and not yet officially audited, it still has potential risks.

Although only a trial product, Pandora is the first project to bring the latest solution, opening up possibilities for NFT projects, especially high-value PFP NFTs. This helps increase liquidity and accessibility for users with smaller capital or without a deep understanding of NFTs.

Currently, Pandora leads the way with the best liquidity, but there are other projects applying the ERC-404 standard that have yet to gain much traction. Therefore, if you intend to invest, careful consideration is advised.

The above is all the information about the Pandora project. If you have further inquiries, you can join the Bigcoin Vietnam group to explore better investment opportunities.

Basic information about the Pandora project: