ERC404 Brings New Opportunities to the Blockchain Gaming Track

The previous article discussed the insights of "the duality of tokens" ERC404 on the blockchain gaming sector, and this article will continue to explore this topic. Although the 404 sector has recently declined with the market adjustments, conducting investment research during a market downturn can actually help avoid being influenced by external sentiments. Let's further clarify the related thoughts:

1. Supplementing Several Basic Concepts

Before introducing the application cases, there are a few points that need to be supplemented:

1. This article collectively refers to protocols such as ERC404, DN404, BT404 as the "404" category.

2. The main differences between these protocols:

ERC404 first appeared, merging ERC721 and ERC20, but the Gas fees are relatively high. The first application was Pandora, which adopted the "treasury queuing rotation" mechanism.

DN404 is an improvement based on ERC404, connecting ERC721 and ERC20 via a bridge to reduce gas fees and allow developers to customize the NFT extraction mechanism. ASTX is the first DN404 project.

BT404 adds an NFT locking feature to prevent accidental destruction and prepares for a P2P trading market.

3. The color probability of Pandora's box does not represent the total ratio, but rather the relationship between the transfer frequency and the probability of drawing.

4. If BT404 can realize its vision, it will be very suitable for blockchain game applications. This is because blockchain game NFTs need to be frequently traded, such as when warriors need to exchange equipment.

2. Case Analysis of the 404 Track

Lumiterra

Lumiterra was favored by investment institutions last year and has now become a hot project. The "Lumiterra Totem 404" NFT launched in March is quite innovative:

1. Write contracts independently, with a high degree of innovation.
2. Change the transfer of tokens to only be able to obtain new NFTs through Uniswap trading, increasing liquidity.
3. Introduce the NFT LEGO mechanism, synthesizing totems will consume Tokens.
4. Adopt a "stack" mechanism to replace the treasury queuing.

Lumiterra will launch the second round of testing on April 17, and a new 404 monster NFT will also be released.

Yuliverse

Yuliverse is a Web3 social positioning game that has been active for over two years. OG 404 assets will be released in mid-March, with a total of 1,000 units.

Compared to Lumiterra, Yuliverse's OG404 is relatively simple:

• Based on the DN404 protocol
• No complex rarity and NFT synthesis
• As an OG Pass carrier, join the token swap gameplay

Choosing DN404 mainly considers lower gas fees and better technical support.

The 404 layout of Yuliverse is relatively simple, mainly used to reward early users, but its integration with the gaming ecosystem brings more imaginative possibilities.

BinaryX

BinaryX launched a new game Project Matthew in March, issuing the MB4 token based on ERC-404:

1. Based on the ERC-404 standard
2. The purchase quota is linked to the BNX holdings.
3. Issue 40,000 MB4, 90% for players to mint.
4. 404 NFT airdrop weight is allocated based on rarity.
5. Destroying MB4 can obtain the advanced asset Land

The main purpose of Project Matthew is to consume BNX tokens. The addition of 404 assets seems somewhat abrupt, as they are not empowered within the game and are only used for airdrops.

Overall, BinaryX's 404 token sale did not innovate at the protocol level, but only empowered at the application level.

III. Development Prospects of the 404 Track

404 is one of the few innovations in this bull market, integrating gameplay into the protocol, allowing for seamless integration into the gaming economic system. This is also why some institutions are optimistic about the 404 track.

However, the 404 innovation is limited to the application level, lacking a greater narrative support. Currently, the leading projects Pandora and ASTX are still in the stage of self-entertainment.

Compared to the innovations of DEFI, NFT, Gamefi, and Meme in the last bull market, this bull market lacks sufficiently attractive new concepts. AI belongs to the Web2 category, inscriptions and runes are similar to Meme, the Solana ecosystem is also primarily Meme-based, while RWA and Depin are still not mature.

The current bull market is mainly driven by the influx of funds, including existing funds in the crypto space and new funds brought in by ETFs. However, a market supported solely by the flow of funds is difficult to sustain; the industry needs endogenous development and innovation to enter a stable period.

Although viewing 404 as an innovation seems insufficient, in the current environment lacking breakthrough concepts, 404 remains a direction worth paying attention to.