Simplified interpretation
Pandora is an NFT fragmentation project launched on February 2. Its core technology is the ERC 404 token standard. Users can purchase the projects token of the same name PANDORA on Uniswap V3 to obtain ERC 404 tokens, which is equivalent to holding its NFT in fragments - Pandora Replicants. In addition, users can also purchase Pandora Replicants directly on OpenSea. The current price of PANDORA is US$2,375.76, with a 24-hour trading volume of US$5.365 million; Pandora Replicants’ trading volume is 48 ETH.
Note: This article was first published on 2024-02-05 inhttps://first.vip. The price of $PANDORA was 2376 at the time of publication.
Introduction to fundamentals
team:PandoraDeveloped by an anonymous team with an unknown number of team members. Currently, three developers can be found from public information: Acme, ctrl and Searn. Acme is the GitHub[1] operator of the Pandora project. Judging from his social account[2], he is an engineer at Coinbase. Another developer, whose screen name is ctrl[3], is one of the investors of Syndicate and runs his own Web3 community. Another developer, Searn[4], has less public information.
funds:The Pandora project does not disclose financing information.
business mechanism
fragmentation mechanism
Pandora is an NFT fragmented project, the core of which isERC 404 Token standard, which is an experimental token standard between ERC 20 and ERC 721. ERC 404 tokens can be traded on platforms like Uniswap, similar to fungible tokens. At the same time, 1 ERC 404 token can correspond to 1 NFT (called Replicant NFT). The mathematical relationship between them is as follows:
nReplicant NFT = [nERC 404 ]
Where nReplicant NFT represents the number of Replicant NFT, nERC 404 represents the number of ERC 404 tokens, and [n] represents the largest integer not greater than this number.
Simply put, you can hold an NFT by collecting a whole token. For example, the user holds 0.5 tokens and he owns 0 NFT; the user holds 1 token and he owns 1 NFT; the user holds 1.5 tokens and he owns 1 NFT; the user holds 2 tokens. If the user holds 2.5 tokens, he owns 2 NFTs, and so on.
In the case of the Pandora project, its ERC 404 token is PANDORA and its Replicant NFTs are Pandora Replicants. Users can first use ETH and other tokens to exchange for PANDORA tokens on Uniswap V3. Holding PANDORA tokens is equivalent to holding fragmented Pandora NFTs (Pandora Replicants). The number of tokens held determines what the user has. The number of NFTs.
Through the ERC 404 standard, Pandora achieves an effect similar to NFT fragmentation. When optimistic about a certain NFT series, users can choose to hold a certain amount of tokens instead of complete NFTs, which is more flexible for capital allocation and also lowers the amount threshold for participating in NFT investments.
NFT burning and recasting mechanism
However, Replicant NFT is different from the common ERC 721 format NFT. Replicant NFT has a burning and recasting mechanism, which is triggered when users perform operations such as transfers or transactions on ERC 404. As mentioned earlier, the integer ERC 404 token will be bound to the Replicant NFT, so when the ERC 404 token changes, the Replicant NFT will also change. There are two situations here:
1) When a user sells ERC 404 tokens, the Replicant NFT in the users wallet will be burned (destroyed).
2) When a user transfers money, the Replicant NFT in the Sender wallet will be burned, and then a new Replicant NFT will be minted in the Receiver wallet.
With each remint, the characteristics of the Replicant NFT are refreshed and the rarity may change accordingly. Therefore, if a user is not satisfied with his NFT, he can keep transferring it to refresh the NFT until he gets an NFT he likes. If a user does not want to change his Replicant NFT (does not want to burn and recast it) and wants to sell or send it to another user, then he can sell the Replicant NFT on OpenSea or send it to another address. To put it simply, if the user wants the Replicant NFT to change, then operate the ERC 404 token; if the user does not want the Replicant NFT to change, then operate the Replicant NFT.
Pandora Replicants[ 5 ]
Pandora Replicants are Replicant NFTs of the Pandora project. They are boxes of five different colors, and the five colors represent different rarities. The official has not disclosed the specific quantity of each rarity, but the order of rarity from high to low is: red, orange, purple, blue, green. New NFTs may be released from future boxes.
business data
Pandora was launched on February 2nd, and is currentlyPANDORAcurrencyPrice $2,375.76, 24-hour trading volume $5.365 million.
Figure 1 PANDORA price, source: DEX Screener
The current floor price of Pandora Replicants is 1.2 ETH, the total trading volume is 48 ETH, and there are 670 holders.
Figure 2 Pandora Replicants transaction data, source: OpenSea
economic model
Pandora does not disclose its economic model, but you can see that the total number of PANDORA tokens and Pandora Replicants is 10,000. There are currently about 5,000 tokens in circulation. The team bought 5,000 tokens from the market in the early days of the launch for project operation team rewards and the like. In addition, the team has reserved 700 tokens for linear release using Sablier, which will be released within one month. The team used approximately 400 ETH to repurchase tokens within the first day of launch. The main reason was that they distributed liquidity at different prices on Uniswap V3 and needed to adjust their LP after the price changed.
Overview
1. Pandora achieves the effect of NFT fragmentation in the form of ERC 404, and its mechanism is relatively novel.
2. ERC 404 tokens also provide better liquidity for NFTs. Users can sell ERC 404 tokens directly on DEX instead of waiting for buyers in the NFT trading market.
