ERC404s are a new token standard that turns nonfungible tokens (NFTs) into semi-fungible tokens, by combining the fungibility of ERC20s, with the uniqueness of ERC721s into one contract.
In ERC404s, each NFT also has 1 ERC20 token bonded to it. So to mint an NFT, you must acquire 1 full ERC20 token. And for each whole number of ERC20 tokens you hold, you will receive 1 NFT. This creates a situation where the ERC20 tokens price is essentially equivalent to the floor price of the NFT collection.
However, unlike regular 404 smart contracts, where there are only 6 images, the $NUTS collection features unique images for every NFT, & the addition of rarity evolution.
Rarity evolution is based on the concept of dynamic rarity, which describes a situation where the rarity of each NFT in a collection can vary after each NFT is minted/burned.
This means for instance that the #1 ranked NFT currently may not always be the rarest, because the holder of the #1 rarest may sell their NUTS ERC20 token, burning that NFT & allowing another NFT to become the #1 rarest in the collection. Or, someone in the future could then mint the #1 rarest.
The economic concepts 404 smart contracts have introduced are game-changing for NFTs. With ERC404s, instead of waiting & praying for someone to buy your common NFT (99% of which will never sell), you can now sell your NFT by selling your ERC20 token instead.
And @slashd0t's $NUTS collection with unique images & dynamic rarity is the best version IMO. Show Less
