- DUNE404 introduces fractionalization for broader NFT ownership.
- A potential revolution in NFT liquidity through ERC 404 standard adoption.
While the NFT market is currently in a consolidated phase, one update has gotten attention from the community. Coinbase Wallet, the self-custody wallet, has introduced DUNE404, the first ERC-404 supported by Animoca Brands (a prominent venture capital company) on Base (the Ethereum L2 Chain). It is based on the popular “Dune” franchise and is scheduled to be minted on June 13th by MagicEden (Marketplace).
As a part of the ERC-404 family, DUNE404’s key feature lies in the fractionalization of NFTs into tokens. The community states that this feature empowers them as it enables broader ownership and enhanced interaction opportunities within the NFT ecosystem. Moreover, the collaboration between Coinbase Wallet and Animoca Brands is expected to spearhead more innovations in the NFT space.
Introducing @Dune_404, the first @animocabrands backed 404 on Base.
— Coinbase Wallet 🛡️ (@CoinbaseWallet) June 11, 2024
Join the largest community for hybrid/404s. 404s enable fractionalization of NFTs into tokens.
Minting June 13th on @MagicEden. Available on Coinbase Wallet. pic.twitter.com/bDDBlZEzCr
DUNE404: Can It Become a Revolution?
NFTs have been facing low liquidity since 2022, which makes it hard to trade effortlessly and swiftly. This has undoubtedly become a vital concern for some high-profile NFT collections. Analysts have suggested utilizing certain variables to solve this major problem. One of which is the fungibility scale. They claim that different assets require different levels of fungibility and that the appropriate fungibility level varies depending on the use of the asset.
Digital analysts notably support ERC-404s for their ability to make NFTs partially fungible. Making an NFT available for partial purchases over time increases market participation, benefiting overall liquidity and trading volume.
Speaking of it, the new collection using the ERC-404 standard, DUNE404, has high expectations. Backing from a prominent firm and availability on a popular platform have raised the standard.
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