Coinfeeds Daily → Ethereum Devs Unveil DN-404 As Response To ERC-404 Sending Fees Surging

Ethereum Devs Unveil DN-404 As Response To ERC-404 Sending Fees Surging

Published: Feb 14, 2024 | Last Updated: Mar 17, 2024
Howard Kane
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New token DN-404 aims to reduce gas costs, leveraging ERC-20 and ERC-721 standards for efficient NFT shared ownership.

As the Ethereum network continues to evolve, developers are actively seeking solutions to improve its efficiency and cost-effectiveness. A recent development in this ongoing effort is the creation of a new token called DN-404, which has emerged in response to the challenges posed by the ERC-404 tokens. These tokens have been at the center of a significant increase in Ethereum's network fees, leading to a call for innovation.

Understanding the ERC-404 Phenomenon

ERC-404 tokens gained popularity due to their unique feature that allows multiple wallets to own a single non-fungible token (NFT). However, this innovation came with a downside: a surge in the network's gas fees. The congestion caused by these tokens has led to transaction fees reaching eight-month highs, which has been a cause for concern among users and developers alike.

Introducing DN-404: A Dual Contract Solution

To combat the issues associated with ERC-404 tokens, Ethereum developers have designed DN-404. This new token utilizes a dual contract structure that is based on the established ERC-20 and ERC-721 standards. The goal of DN-404 is to offer the benefits of ERC-404 tokens—such as shared ownership of NFTs—while avoiding the high transaction costs that have plagued the network.

Compliance and Efficiency with DN-404

DN-404 aims to provide a more efficient and compliant way of achieving the goals set out by ERC-404. By adhering to the widely recognized ERC-20 and ERC-721 standards, DN-404 is designed to integrate seamlessly with the existing Ethereum ecosystem. This approach is expected to reduce network congestion and, as a result, lower the gas fees for transactions.

Experimental Tokens and the Path to Official Recognition

It's important to note that both DN-404 and ERC-404 are experimental and have not been officially recognized by the Ethereum Foundation. However, the popularity and potential of these tokens have not gone unnoticed. Developers are currently working on an Ethereum Improvement Proposal (EIP) for ERC-404, which could pave the way for official recognition and wider adoption within the Ethereum network.

Takeaways

For users of the Ethereum network, the introduction of DN-404 presents a promising development in the quest for more affordable and efficient transactions. While these tokens are still in the experimental phase, their potential to reduce gas fees could have a significant impact on the cost of participating in the Ethereum ecosystem. Users should stay informed about the progress of DN-404 and ERC-404, as well as the status of the proposed EIP, to understand how these changes may affect their transactions and investments in the future.

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