HYAPE PARTY - Unleash Your Inner Ape in the Ultimate 3D Multiplayer Showdown on ERC-404 Terrain!

TRON Hackathon Hackathon Season 7
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DND-404 is an upgraded version of the ERC-404 standard. It operates similarly to ERC-721 but with enhanced liquidity features, allowing users to convert NFTs into ERC-20 tokens. This flexibility enables owners to trade or sell their assets more easily while retaining the benefits of NFT ownership. Every NFT token-id is unique different from each other and only has a single owner

ERC-1155 is a multi-token standard that supports both fungible and non-fungible tokens within a single contract. So every NFT token-id will be able to have multiple owners

Ownership Models

Full Ownership

With full ownership, a user holds 100% of a terrain or asset, represented as a unique NFT (like DND-404 or ERC-721). This ownership means that the user has complete control over the asset, including the ability to sell, transfer, or develop it.

Benefits of Full Ownership:

  1. Control: The owner has full decision-making power regarding the asset.
  2. Simplicity: The legal and technical implications of ownership are straightforward.
  3. Value Retention: Full ownership often leads to higher perceived value in markets, as collectors and investors appreciate the uniqueness and exclusivity of singular assets.
  4. Direct Liquidity: With DND-404’s feature, owners can convert their NFTs into ERC-20 tokens for easy trading.

Shared Ownership

Shared ownership allows multiple users to collectively own a single terrain or asset, often represented as fractionalized NFTs. This can be implemented using ERC-1155, where a specific terrain can be owned by many parties through tokenized shares.

Benefits of Shared Ownership:

  1. Affordability: Lower entry barriers for investment, as multiple users can pool resources to own a valuable asset.
  2. Diversification: Users can diversify their portfolios by owning fractions of multiple terrains rather than one whole asset.
  3. Collaborative Development: Owners can work together to develop or improve the terrain, potentially increasing its value collectively.
  4. Liquidity: Shared ownership models can allow for easier trading of fractions, making it simpler to exit an investment or realize gains.

Let’s say you have a really unique asset and want to sell it for around $10,000 because of its value.

  • If it’s an NFT-721, you must wait for a single buyer to purchase the asset in one go for $10,000.
  • However, with DND-404, multiple people can purchase fractions of your asset without needing the full $10,000. This will turn into ERC-20 and this allows you to gain liquidity more quickly than through the traditional method. Once you’ve received your $10,000, you no longer need to manage the fractions, as that responsibility is no longer yours. People can then re-sell the fractions, creating additional economic activity. Eventually, if a collector acquires all the fractions, automatically will convert them back into a single NFT token.

The benefit of using DND-404 for terrain ownership is that all royalties go directly to you. In contrast, with ERC-1155, the royalties are split among all the owners.

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