DN404 NFT Standard Emerges After ERC-404; Magic Eden and Deadfellaz Announce Major Updates

Top NFT news for February 13, 2024: Following the introduction of ERC-404, a new divisible NFT format known as DN404 has launched. Additionally, Magic Eden announced the launch of its Ethereum marketplace, and Deadfellaz creators released 10,000 Bitcoin Ordinals.

NFT Market Data

Non-fungible token (NFT) sales volume currently stands at $36,917,776, representing a 0.19% increase over the past 24 hours.

During the same period, the number of buyers, sellers, and transactions increased by 5%, 1%, and 7%, respectively.

Regarding the top 10 collections by sales volume over the last day, Pandora retains the first position with $6,560,152 in volume, despite a 16% decline.

Art Blocks experienced the largest daily increase, surging 444% to $843,870. Conversely, Doodles saw the steepest drop, falling 47.47% to $855,826, according to CryptoSlam.

Key NFT developments today include the revelation of a new experimental blend of ERC-20 and ERC-721 standards by a team of developers, the upcoming launch of Magic Eden’s Ethereum marketplace, and the release of 10,000 Bitcoin Ordinals by Deadfellaz creators, DFZ Labs.

Following ERC-404, Here Comes DN404

Following the recent launch of the unofficial Ethereum standard ERC-404, a different team of developers announced the launch of the “Divisible NFT” standard, known as DN404.

Developer “cygaar” announced the launch of DN404, describing it as “a hybrid ERC20/721 token.” According to GitHub, it is an implementation of a co-joined ERC-20 and ERC-721 pair.

The team includes vectorized.eth, quit, 0xjustadev.eth, michaelamadi.eth, and Pop Punk.

Some may argue that these hybrid tokens are nothing more than ERC1155s with extra flair.

I argue that having NFTs that can trade on NFT exchanges as well as DEXes is a new unlock that we haven’t seen before. Native fractionalization adds more liquidity to NFT projects.

— cygaar (@0xCygaar) February 12, 2024

Pandora’s ERC-404 combines the popular ERC-20 (token standard) and ERC-721 (NFT standard). “The premise of ERC404 was to create a single contract that can act as both a fungible and non-fungible token. However, this can’t be done without introducing exploits and breaking standards,” cygaar wrote.

The DN404 team’s approach utilizes two contracts: a “base” ERC-20 with a “mirror” ERC-721.

Most trading will occur on the base contract, cygaar explained. The base contract is a fully compliant ERC-20 token that tracks user balances and handles the minting and burning of the mirrored NFTs. The developer added, “You can think of these tokens as fractions of the NFTs.”

These tokens are compatible with decentralized exchanges (DEXes).

Meanwhile, the mirror contract functions as a standard ERC-721 token. All its functions are fully compliant and can be used with any protocol that supports ERC-721s.

Introducing DN404: a solution to the critical issues arising from the newly popular “ERC404” tokens.

Huge shoutout to the all-star team who has worked around the clock for days to make this a reality:@0xQuit@0xCygaar@optimizoor@0xjustadev@PopPunkOnChain@AmadiMichaels

And…

— quit () (@0xQuit) February 12, 2024

Developer Quit further noted that DN404 has not undergone the EIP process. Therefore, “we are not calling it a standard.”

Moreover, Cygaar reminded readers that DN404 is not a project, and there are no tokens for sale. The team has simply released open-source code for other projects to build hybrid tokens.

The code has not been formally audited, and the team is not liable for any exploits.

What an overwhelming amount of support on the DN404 release today.

A few things:

1) The collective team did not launch any collections. Any project that’s named DN404 is not us.
2) The DN404 repo has a few template smart contracts for you to start with. These will expand.

— Pop Punk (@PopPunkOnChain) February 13, 2024

Magic Eden Launches Ethereum Marketplace in Two Weeks

Popular NFT marketplace Magic Eden will launch its Ethereum marketplace on February 27.

The countdown has begun, the company stated.

02.27 pic.twitter.com/x33SwyNSVn

— Magic Eden (@MagicEden) February 12, 2024

Magic Eden and Yuga Labs announced the Magic Eden Ethereum Marketplace in November of last year. The two companies stated that this would become the first major Ethereum marketplace with a contractual obligation to uphold creator royalties.

The new marketplace will be powered by Payment Processor, a marketplace protocol developed by Limit Break.

“Limit Break’s dedication to pushing the boundaries of web3 technology has paved the way for us to collaborate on safeguarding creator royalties and fostering future innovation,” Magic Eden said.

We’re thrilled to announce that our upcoming Ethereum marketplace will be powered by Payment Processor: a robust marketplace protocol developed by @limitbreak. When compared to protocols like Seaport, our marketplace will reduce gas fees by at least 6% and up to 40% for many… pic.twitter.com/ewcf0M58GP

— Magic Eden (@MagicEden) February 12, 2024

The team further announced that the first mint on the Ethereum launchpad will be the Okay Dogs collection in partnership with Okay.

We’re excited to announce that the first mint on our Ethereum Launchpad will be @okay_dogs in partnership with @okayxyz.

02.27. We’re all gonna be okay. pic.twitter.com/UU3cMYbmlv

— Magic Eden (@MagicEden) February 12, 2024

Deadfellaz Creators Launch 10,000 Bitcoin Ordinals

In other NFT news, DFZ Labs, the creative studio behind the Deadfellaz NFT collection, is launching its own Bitcoin Ordinals.

On Tuesday, February 13, the team launched its unique ordinals collection on the Magic Eden marketplace. The collection, called Bits, comprises 10,000 pixel characters inscribed by Ordinals Bot.

According to a press release shared with Cryptonews, the project is “a new independent brand focused on ‘Bringing Indie Gaming to BTC.’”

“Bits sets out to build a supercharged game development incubator, utilizing a roguelite game world at its core to house curated UGC content, while rewarding collectors and players – in a way never seen before,” the press release stated.

It’s dangerous to go alone, take Bits ._. https://t.co/DcXqiHEsvH

— Bits ._. (@BitsOrdinals) February 13, 2024

Bits focuses on a ‘Build to Win, Play to Enjoy’ model, the team added. This gives the community the chance to contribute and earn rewards, while the team continues to create an expanding immersive game.

The game will be offered to a wider audience via traditional platforms, including Steam and consoles.

The Bits founding team all come from within the Deadfellaz community. They will run Bits as its own flagship BTC IP under the DFZ Labs ecosystem but as an independent brand.

Deadfellaz co-founders Betty and Psych serve as mentors and advisors. They will host a Twitter Spaces this Friday on the Bits and Deadfellaz accounts. Bits’ inscribing partner Ordinals Bot and BTC wallet Xverse will join the discussion.

Meanwhile, DFZ Labs has allocated 500 airdrops of Bits for top Deadfellaz collectors and community contributors.

In case you missed it, 500 @Deadfellaz collectors will be receiving a free @BitsOrdinals airdrop following the mint on the 13th. Here is your checklist to make sure you’re ready:

Create an @xverseApp wallet.
Ensure you’re verified in the @Deadfellaz discord.
Await…

— Deadfellaz (@Deadfellaz) February 11, 2024