Why we launch the Pandorian Hybrid NFTs collection?

In the landscape of Non-Fungible Tokens (NFTs), liquidity has remained a critical challenge. While NFTs have democratized digital ownership, their indivisible nature has often limited accessibility, particularly for high-value assets. The birth of ERC-404 has addressed this gap by introducing a new approach to NFTs: fractionalization. By enabling the division of NFTs into smaller, tradable units, ERC-404 tokens pave the way for enhanced liquidity and market participation, potentially expanding the reach of valuable digital assets to a broader audience.

In this article, we’ll dive into the motivations behind the launch of the Pandorian Hybrid NFTs collection, explore the unique features of the 404 token standard, and examine the numerous utilities and benefits that Pandorian Hybrid NFT holders stand to gain.

1. Problem with NFTs

Traditional NFTs face a big challenge: they’re not easy to buy or sell quickly. Unlike regular money or cryptocurrencies, where trading is straightforward, NFTs are unique. This uniqueness makes it tough to agree on their value and find someone willing to buy them.

Plus, many NFTs don’t offer much beyond being digital collectibles. They often lack real-world uses and can lose their value fast. So, if you own one and want to sell it, finding a buyer can be tough.

While you can easily trade regular money or cryptocurrencies on exchanges, selling NFTs usually means finding someone directly interested in buying them. This makes selling them quickly and at a fair price even more challenging.

2. Explaining Hybrid NFTs/404 token standard

To tackle the liquidity problem of NFTs, some innovative minds came up with a solution: Hybrid NFTs. In simple terms, Hybrid NFTs combine the best of both worlds:

• The uniqueness of Non-Fungible Tokens (NFTs).
• The liquidity and divisibility usually found in Fungible Tokens (FTs).

The ERC-404 token standard is an experimental Ethereum token standard designed to merge the characteristics of fungible (ERC-20) and non-fungible tokens (ERC-721) into a hybrid form, allowing for both unique and divisible asset representations on the blockchain.

Here’s a bit of context: ERC20 tokens are fungible, meaning they’re interchangeable, like regular currency. However, they lack uniqueness. On the other hand, ERC721 tokens are non-fungible, each possessing a distinct ID, making them unique but less liquid.

With ERC404, we’re introducing a fresh approach by blending these features. This allows NFTs to have a specific amount of tokens associated with them, offering a more flexible and liquid asset compared to traditional NFTs.

3. Benefits of Hybrid NFTs/404 standards

So… what exactly are the benefits of Hybrid NFTs/404 standards?

• Enhanced Liquidity: Traditional NFTs often require specialized marketplaces or direct peer-to-peer transactions, making them less accessible. However, with Hybrid NFTs, the fungible fractions can be easily traded on standard decentralized exchanges (DEXs) designed for ERC-20 tokens. This significantly boosts liquidity and accessibility for investors and collectors alike.
• Fractional Ownership: The 404 standard allows for fractional ownership of NFTs, meaning more people can invest in high-value assets. This increased accessibility not only broadens the investor base but also stimulates potential market growth for entire collections.
• Expanded Utility: By associating NFTs with a specific number of tokens, the 404 standard unlocks a wide range of applications beyond traditional collectibles. These tokens can be used in various decentralized finance (DeFi) applications, including farming and staking strategies, thereby enhancing the overall utility and value proposition of Hybrid NFTs.
• Market Potential: The introduction of the 404 standard has sparked significant market interest, evidenced by high trading volumes on decentralized exchanges and NFT marketplaces. This strong demand reflects the market’s appetite for tokens that combine the benefits of fungibility with the uniqueness of NFTs.
• Limited Supply, High Demand: NFTs are inherently scarce, and their linkage to tokens contributes to their high value. This scarcity, coupled with increasing demand, creates a classic market dynamic that drives prices upwards.

With the potential for further innovations and applications, the 404 model holds exciting opportunities for the future of NFTs.

4. About Pandorian Hybrid NFTs Collection

4.1. Pandorian NFTs

Pandorian stands as the pioneer of Hybrid NFTs within the Sui Blockchain ecosystem. With a total supply of 12,222, only 3,333 NFTs will be available at our minting event, while the remaining 8,889 NFTs will be accessible for users to swap at our 404 pool.

But Pandorian NFTs offer more than just ownership; they come with exclusive benefits within our dApps. Take ‘The Lottery,’ for instance, where owning a Pandorian NFT holds the key. By staking your Pandorian NFT, you unlock a 20% discount on every ticket you purchase. This discount policy kicks in from the second day of staking and remains active until you decide to unstake your NFT.

But wait, there’s more. When you stake your Pandorian NFT for at least 24 hours, you’re in for a bonus in our Referral Program. You’ll receive 0.2% of level 4 commission and 0.015% of level 5 commission, meaning you’ll earn extra cash from trading fees. Approximately 7% of the total fees will be added to your commission, giving you an added incentive to join our ecosystem.

Our vision for Pandorian is to enhance the Sui ecosystem by open-sourcing the #SUI404 standard and supporting projects that follow Hybrid NFT concepts. By onboarding these innovative projects, we aim to create new opportunities for our Pandorian holders. They will benefit from potential revenue sharing based on our future allocations.

4.2. $PAN tokens

$PAN serves as the official token of Pandora Finance, playing a pivotal role in our ecosystem. Initially, $PAN will primarily facilitate trading and swapping Pandorian NFTs within our 404 pool. However, we anticipate expanding its utility significantly in the future.

As our ecosystem evolves, $PAN will unlock a multitude of functionalities, including DeFi applications, rewards for NFT holders, airdrops, and more. This expansion of utility is particularly exciting for Pandorian Hybrid NFTs, as traditional NFTs lack the capability to integrate with DeFi protocols.

With Hybrid NFTs, users can expect a wealth of new applications, such as farming and staking, leveraging the liquidity and divisibility inherent in these assets. Whether it’s establishing farming pools on platforms like Cetus or FlowX or integrating $PAN into our dApps for utility purposes, the possibilities are limitless.

5. Reduce inflation with Pandora Finance 404 pool

In our strategy to combat inflation, we’ve implemented the 404 pool feature - a treasury for our community that simplifies the process of swapping between NFTs and tokens. Here’s how it works: users can trade 1000 $PAN for 1 Pandorian NFT, or vice versa.

Within this pool, users can exchange 1000 $PAN tokens for 1 Pandorian NFT, or vice versa. This feature will leverage the inherent link between NFTs and tokens in our ecosystem. Notably, there’s a 2% $PAN swap fee incurred when users participate in this swap. Half of this fee goes to our Treasury for various activities, while the other half is instantly burned.

What makes this pool exciting is the presence of different-trait Pandorian NFTs waiting to be discovered. As people strive to acquire these unique treasures, the trading of $PAN tokens gains momentum. This excitement around finding special NFTs fuels the trading of $PAN tokens, making Pandorian NFTs more accessible to everyone.

As highlighted in the tokenomics, a substantial portion of $PAN will be utilized for liquidity provision (LP), comprising 20.5% (equivalent to 2,500,000 $PAN tokens). Additionally, 27.3% of the total $PAN supply, amounting to 3,333,000 $PAN tokens, will be allocated to liquidity within the 404 pool. This strategic allocation, combined with the mechanism where 10 $PAN tokens are burned with each swap to Pandorian NFTs, results in a gradual reduction of the $PAN supply. This controlled reduction aims to create scarcity and potentially increase the value of $PAN over time, ensuring a healthy and sustainable ecosystem for both $PAN and Pandorian NFTs.

This mechanism not only encourages engagement within the Pandora Finance community but also actively contributes to reducing the circulating supply of $PAN tokens.

6. Final words

In closing, the launch of the Pandorian Hybrid NFTs collection marks a historic milestone for the Sui Blockchain ecosystem. As the first to introduce Hybrid NFTs in this space, we are not just pioneers; we are trailblazers, leading the way towards a new era of innovation and accessibility.

By embracing the potential of Hybrid NFTs, we are reshaping the landscape of digital ownership and decentralized finance. Together, we are breaking barriers and opening doors to a world where creativity flourishes, and opportunities abound.

Make sure you stay up-to-date with all our latest updates about the Pandorian Hybrid NFT collection. NFT minting and token launching are coming soon, and you won’t want to miss any details of it!

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Pandora Finance official links:

• Twitter: https://twitter.com/pandora_finance
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• Medium: https://pandora-finance-on-sui.medium.com/
• Website: https://pandorafi.xyz/