The novel token type purports to address some of the drawbacks associated with ERC-404s, an experimental standard that was introduced just last week - garnering such attention that it has already led to increased congestion on the Ethereum blockchain.

The sudden excitement surrounding ERC-404 tokens has resulted in millions of dollars in trading volumes since its inception in early February, but it appears to have also caused Ethereum network fees, known as "gas," to reach their highest levels in eight months.

However, the developers of DN-404 claim to have devised a new architecture that utilizes two contracts to achieve similar objectives as ERC-404, without the accompanying issues.

Both contracts are considered experimental and unofficial.

A consortium of Ethereum application developers initiated a new token contract on Monday to address the perceived shortcomings associated with the experimental standard called ERC-404s, which has experienced a surge in popularity, contributing to network congestion and escalating fee rates.

DN-404, abbreviated for "Divisible NFT-404," is a token implementation built upon existing token standards ERC-20 and ERC-721 and asserts to provide "complete compliance" with these frameworks. Within the Ethereum ecosystem, ERC-20 serves as the established framework for token issuance, whereas ERC-721 is utilized for non-fungible tokens (NFTs).

The developers behind DN-404 claim to have devised this framework after ERC-404 led to a surge in gas fees due to its operational mechanisms.

Partially as a consequence of ERC-404s, transaction fees skyrocketed to as high as $840 for a single transaction (in a specific project), highlighting a substantial increase from the typical cost of $50.

ERC-404s have led to millions of dollars in trading volumes, but also appear to have driven Ethereum fees to their highest levels in eight months since its inception in early February. #Ethereum... #Ethereum2024 #ETH #Write2Earn #TrendingTopic