What is Arkto ?
The Native Fractionalization of our ERC-404 token is built into the smart contract itself, removing the need to rely on third party entities for NFT fractionalization. This mechanism enhances both the liquidity and accessibility of our market.
How do ERC-404 Tokens Work?
The significance of the ERC-404 token standard lies in its ability to introduce native fractionalization and liquidity to the NFT market. This not only opens up new avenues for asset management and trading but also fosters innovation and engagement within the digital asset ecosystem. By blending the advantages of ERC-20 and ERC-721 tokens, ERC-404 sets the stage for a more inclusive and dynamic digital asset landscape.
At its core, ERC-404 operates on a mint-and-burn mechanism that facilitates the fractional ownership and transfer of non-fungible tokens (NFTs). This mechanism allows for the division of NFTs into smaller, manageable pieces, thus democratizing access to valuable digital assets while also enhancing their liquidity in the market.
For instance, owning a fraction of an ERC-404 token linked to an NFT enables a form of shared ownership; Additionally, accumulating enough of these fractions to make a whole token leads to the minting of a new, complete NFT in the holder’s wallet
