Pandora NFT Token (ERC404): Your Questions Answered
Important Information
Ensure your transactions occur on the official platform Pandora Labs to avoid scams. Use only verified platforms for safety.
What is ERC404?
ERC404 is an experimental token standard that merges the features of ERC20 (used for fungible tokens, like cryptocurrencies) and ERC721 (used for non-fungible tokens, or NFTs). This innovative approach enables both liquidity and fractionalization within a single token standard, opening up new possibilities in the DeFi and NFT sectors.
How Does Pandora Utilize ERC404?
Pandora is the first project built on the ERC404 standard, offering a unique combination of 10,000 ERC-20 tokens and 10,000 associated “Replicant” NFTs. When you purchase a full PANDORA token, a Replicant NFT is minted to your wallet. Conversely, selling a PANDORA token results in the connected NFT being burned.
What Happens When You Transfer NFTs?
Transferring an NFT in the context of Pandora and ERC404 does not alter the NFT; it merely changes its ownership. However, when you sell or transfer a PANDORA token, the linked NFT is destroyed. A new NFT is minted only if the receiver ends up with a whole token, introducing different details from any NFT created before.
Can You Explain the Rarity and Trading Aspects?
Every time a Replicant NFT is minted, it appears with a unique rarity, ranging from common (green) to extremely rare (red). This system allows for the “reroll” of rarities through trading PANDORA tokens.
Engaging in transactions through platforms like Pandora Labs adds an intriguing dimension for both traders and collectors.
What are the Risks and Considerations?
Given that ERC404 is experimental and Pandora being its first implementation, potential investors should be aware of the risks. The standard itself is unaudited, which means there might be undiscovered flaws. Moreover, the dynamic nature of minting and burning NFTs tied to token transactions requires careful consideration to avoid unintended losses.
