Introduction to fundamentals

Team: Pandora is developed 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 in Syndicate and runs his own Web3 community. Another developer, Searn[4], has less public information.

Funding: Pandora has not disclosed funding information.

business mechanism

fragmentation mechanism

Pandora is an NFT fragmented project, the core of which is the ERC404 token standard, which is an experimental token standard between ERC20 and ERC721. ERC404 tokens can be traded on platforms such as Uniswap, similar to fungible tokens. At the same time, one ERC404 token can correspond to one NFT (called Replicant NFT). The mathematical relationship between them is as follows:

nReplicant NFT = [nERC404]

Where nReplicant NFT represents the number of Replicant NFTs, nERC404 represents the number of ERC404 tokens, and [n] represents the maximum integer not greater than this number.

Simply put, if you have a whole token, you can hold an NFT. For example, if a user holds 0.5 tokens, he owns 0 NFTs; if a user holds 1 token, he owns 1 NFT; if a user holds 1.5 tokens, he owns 1 NFT; if a user holds 2 tokens, he owns 2 NFTs; if a user holds 2.5 tokens, he owns 2 NFTs, and so on.

In the Pandora project, its ERC404 token is PANDORA, and its Replicant NFT is Pandora Replicants. Users can first use ETH and other tokens to exchange PANDORA tokens on Uniswap V3. Users holding PANDORA tokens are equivalent to holding fragmented Pandora NFTs (Pandora Replicants). The number of tokens held determines the number of NFTs owned by the user.

Through the ERC404 standard, Pandora has achieved a similar effect to NFT fragmentation. When users are optimistic about a certain NFT series, they can choose to hold a certain amount of tokens instead of the complete NFT, which is more flexible for fund allocation and also reduces the threshold for participating in NFT investment.

NFT burning and re-minting mechanism

However, Replicant NFT is different from the common ERC721 format NFT. Replicant NFT has a burning and recasting mechanism, which is triggered when the user transfers or trades ERC404. As mentioned above, the integer ERC404 token will be bound to the Replicant NFT, so when the ERC404 token changes, the Replicant NFT will also change. There are two situations here:

1) When a user sells an ERC404 token, the Replicant NFT in the user’s 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 re-minted in the Receiver wallet.

Each time a Replicant NFT is recast, its features are refreshed and its rarity may change. Therefore, if a user is not satisfied with his NFT, he can keep transferring it to refresh the NFT until he gets the one he likes. If a user does not want to change his Replicant NFT (does not want to burn and recast) but wants to sell or send it to another user, he can sell the Replicant NFT on OpenSea or send it to another address. In short, if the user wants the Replicant NFT to change, he can operate on the ERC404 token; if the user does not want the Replicant NFT to change, he can operate on the Replicant NFT.

Pandora Replicants[5]

Pandora Replicants are Pandora project Replicant NFTs, which are boxes of five different colors, and the five colors represent different rarities. The official has not yet disclosed the specific number of each rarity, but the order of rarity from high to low is: red, orange, purple, blue, green. New NFTs may be opened in the boxes in the future.

Business data

Pandora was launched on February 2. The current price of PANDORA is $2,375.76, with a 24-hour trading volume of $5.365 million.

 

Figure 1 PANDORA price, source: DEX Screener

 

Currently, the floor price of Pandora Replicants is 1.2 ETH, the total transaction volume is 48 ETH, and there are 670 holders.

Figure 2 Pandora Replicants transaction data, source: OpenSea

 

Economic Model

Pandora has not disclosed its economic model, but it can be seen that the total number of PANDORA tokens is 10,000, just like Pandora Replicants. There are currently about 5,000 tokens in circulation. The team bought 5,000 tokens from the market at the beginning of the launch, which were used for project operation team rewards and the like. In addition, the team retained 700 tokens and released them linearly using Sablier within a month. The team used about 400 ETH to repurchase tokens on the first day of the 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 through the form of ERC404, and its mechanism is relatively novel.

2. ERC404 tokens also provide better liquidity for NFTs. Users can sell ERC404 tokens directly on DEX without having to wait for buyers in the NFT trading market.