Nfts
What is SPL-404? Solana’s Hot New NFT Standard
A new token standard, SPL-404, is drawing attention to Solana for its ability to integrate NFT and DeFi.
This approach combines the distinct qualities of NFTs with the liquidity and fungibility of traditional tokens, creating a unique hybrid asset.
This token standard allows NFTs to be exchanged for a certain number of tokens, and vice versa.
What is the SPL-404 token standard?
Think of SPL-404 as a hybrid token: it uses Solana’s Token22 standard to create NFTs with intrinsic token value.
Traditional NFTs represent unique digital items, such as artwork, collectibles, or gaming assets, and are generally less liquid than fungible tokens because each asset is unique. SPL-404 changes this by allowing NFTs to have an intrinsic token value, effectively assigning each NFT a certain number of underlying tokens.
This value may vary depending on factors such as scarcity, demand, or tokenomics set by the creators of a given collection.
As a result, this token standard provides more flexibility in trading and access to liquidity.
Source: Gogonauts, Mall Street, Fluffys, The Delinquents
How does SPL-404 combine DeFi and NFT?
SPL-404 combines DeFi and NFT by making NFT assets more like traditional tokens.
- Ease of Trading: If each NFT has a built-in token value, it is easier to buy and sell. You don’t need to look for a specific buyer: just find someone who wants the tokens to be worth it.
- Accessibility: SPL-404 can reduce the cost of accessing NFTs; Instead of purchasing a single expensive piece, you can upgrade to a level that suits your budget.
- Flexible use cases: This new standard opens up some possibilities. For example, in a game, an SPL-404 NFT might be an in-game item with token value, making it easier to trade or sell when you’re done with it.
What are the current SPL-404 projects?
Several projects on Solana are already adopting the SPL-404 standard.
These projects leverage the hybrid nature of SPL-404 to offer unique digital assets with more liquidity than traditional NFTs. Here are some examples:
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*All investment/financial opinions expressed by NFT Plazas are derived from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product before making any type of investment.