How TRC404 protocol works?
Last updated
Last updated
The basic mechanism of the TRC404 protocol is as follows:
1 T404 token + 1 T404 NFT = 1 TRC-404
You can sell T404 NFT on getgems.io NFT marketplace.
You can sell T404 tokens on 404 Pink Market or 404 DEX.
If you hold 1 TRC-404(1 T404 and 1 T404 NFT), then you sell/transfer 0.5 T404 token, and the TRC404 protocol will burn one of your T404 NFTs with the smallest NFT index. (Note: Not the smallest NFT level!)
If you hold 0.5 TRC-404(0.5 T404 token ), then you buy/receive 0.5 T404 token, and the TRC404 protocol will mint randomly one T404 NFT for you.
To reduce gas fees, one wallet can only have a maximum of 5 NFTs.If you try to transfer an NFT to a wallet that already owns 5 NFTs, the receiver's wallet will only receive 1 T404 token, and the NFT will be burned.
There is no corresponding relationship between the number of 404 tokens and the number of 404 NFTs. It is allowed to hold 5 404 tokens in a wallet, but the number of 404 NFTs is 0.
Note: 0.5 is just an example number.
In a word, If your NFT amount is less than 5:
when your T404 exceeds the next integer number(from n to n+1), it will lead to mint 1 NFT.
When your T404 is less than the previous integer number(from n to n-1), it will lead to burning one of your NFTs.
You have 1.3 T404 and 1 NFT, and if you transfer 0.4 T404 to another wallet, 1 NFT will be burned.Because your T404 is less than 1. After that, Your T404 amount will be 0.9 T404 and have no NFT.
You have 3.6 T404 and 3 NFT, and if you transfer 1 NFT to another wallet or list 1 NFT on the NFT marketplace, no NFT will be burned. After that, Your T404 amount will be 2.6 T404 and 2 NFT.
You have 1.7 T404 and 1 NFT, and if you receive 0.3 T404 from another wallet, the contract will mint a new NFT for you. After that, your T404 amount will be 2 and have 2 NFTs.
You have 4.8 T404 and 4 NFT, and if you receive 1 NFT from another wallet, your T404 amount will be 5.8 and have 5 NFTs.
In general, transfer NFT will not lead to burn NFT. Only when the receiver has already owned 5 NFTs, will lead to burn this NFT, the receiver will only receive 1 T404.
