Layer‑1 Blockchain Launches Token Standard to Rival ERC-404

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Injec­tive, a promi­nent Lay­er 1 blockchain, recent­ly launched the CW-404 stan­dard. This inno­v­a­tive move aims to rival Ethereum’s ERC-404. 

As a mat­ter of fact, it seeks to cap­ture a por­tion of the invest­ments cur­rent­ly flow­ing into Ethereum.

How Injective Will Compete Ethereum With CW-404 Standard

Through a strate­gic part­ner­ship with decen­tral­ized exchange DojoSwap, Injec­tive has intro­duced the CW-404 stan­dard. The CW-404 stan­dard, a port of the exper­i­men­tal ERC-404, merges the capa­bil­i­ties of the CW-20 and CW-721 stan­dards. Con­se­quent­ly, it promis­es to rev­o­lu­tion­ize frac­tion­al non-fun­gi­ble token (NFT) stan­dards.

“CW404 brings the mas­sive­ly pop­u­lar ERC-404 stan­dard to the fastest blockchain with the low­est fees, scal­ing frac­tion­al NFT stan­dards to entire­ly new heights,” Injec­tive said.

Injective’s strat­e­gy aims to divert some of Ethereum’s invest­ment to its ecosys­tem. Sig­nif­i­cant­ly, the DojoSwap team has pio­neered the appli­ca­tion of CW-404 on Injec­tive. They launched the Sushi Fight­er NFT project, mark­ing a new chap­ter in tok­eniza­tion on the platform.

CW-404’s rival, the ERC-404 stan­dard on Ethereum, known for enabling mul­ti­ple wal­lets to co-own a sin­gle NFT, has been a finan­cial game-chang­er. It allows hold­ers to tok­enize spe­cif­ic expo­sures for lever­ag­ing in loans or stakes. Despite its unof­fi­cial sta­tus, it has attract­ed mil­lions of dol­lars to the Ethereum ecosystem. 

The debut of the first ERC-404 token – Pan­do­ra, wit­nessed an extra­or­di­nary 12,500% surge. This inno­v­a­tive token com­bines the fun­gi­bil­i­ty of ERC-20 tokens with the unique fea­tures of rare NFTs, herald­ing a new era of tok­eniza­tion.

Read more: ERC-404 Tokens: A Com­plete Guide

How­ev­er, the excite­ment was tem­pered by the sub­se­quent sharp decline in the val­ue of the Pan­do­ra token after reach­ing a peak at $32,836. The ERC-404 stan­dard, devel­oped by the pseu­do­ny­mous “ctrl” and “Acme,” remains exper­i­men­tal. It has not yet been sub­ject­ed to the Ethereum Improve­ment Pro­pos­al (EIP) vet­ting process.

Top ERC-404 Tokens
Top ERC-404 Tokens. Source: Coin­Mar­ket­Cap

There are con­cerns about the ERC-404 standard’s prac­ti­cal appli­ca­tion, espe­cial­ly in lend­ing pools. The risk that pro­to­col mis­match­es could allow the with­draw­al of high-val­ue NFTs rather than their fun­gi­ble frac­tions is significant. 

This high­lights the neces­si­ty for blockchain pro­to­cols to adapt care­ful­ly to new stan­dards like ERC-404 and its Injec­tive coun­ter­part, CW-404.

Dis­claimer

In adher­ence to the Trust Project guide­lines, BeIn­Cryp­to is com­mit­ted to unbi­ased, trans­par­ent report­ing. This news arti­cle aims to pro­vide accu­rate, time­ly infor­ma­tion. How­ev­er, read­ers are advised to ver­i­fy facts inde­pen­dent­ly and con­sult with a pro­fes­sion­al before mak­ing any deci­sions based on this con­tent. Please note that our Terms and Con­di­tionsPri­va­cy Pol­i­cy, and Dis­claimers have been updated.



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