Given our commitment to innovation in the blockchain space we are always paying attention to the cutting edge in the industry and how we can build upon it. During our search the DN404 protocol has caught our attention. We have put into motion several new initiatives which will leverage this exciting new innovation as we believe it will become more popular in the coming months.

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What is DN404

DN404 is an exciting new way to blend ERC-20 and ERC-721 tokens. Owning enough of the ERC-20 token automatically mints an ERC-721 token to your wallet. And on the flip side removing the fungible tokens from your wallet will burnt the non-fungible ones from your wallet. NFTs which are burnt are then headed to the back of the list to be minted again in succession after the next person acquirers enough tokens.

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What are the benefits of DN404

There are several benefits to the DN404 protocol. One being that this now makes NFTs easily fractionalized. You can essentially put NFTs on layaway by slowly acquiring the tokens needed which will mint one. On the flip side NFTs can now have thick and easy liquidity when their ERC-20 counterpart is now paired with another such as FRTN or CRO in a DEX.

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Also as more NFTs are "minted" by buying the tokens directly off the DEX by nature the floor price and cost of the NFTs goes up. Yet however if one more rare or valuable token is discovered rather than selling it directly on the DEX at the floor price it can be listed in our NFT market instead at a higher premium.

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Introducing zkCronies

Those of you who remember when we first launched nearly 3 years ago may remember the Cronies NFT release made to demonstrate that cheap gas prices on Cronos would allow for us to store on-chain image data and was also to commemorate the launch of Cronos. They were mintable only for the first 1000 blocks of the original Cronos chain.

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Now zkCronies are recently launched on Cronos zkEVM. Instead this collection will demonstrate the concept of DN404 tokens to our community. Only 4000 zkCronies exist and they have 18 decimals places. Of these 4000 436 were airdropped to the holders of the original collection and the rest was paired on our DEX with FRTN token at the cost of 1000 FRTN per Cronie.

Now users may mint Cronies by purchasing just 1 token directly off the DEX as pictured below!

If you find a zkCronie with colors which you really enjoy or perhaps a tokenID you think is more valuable you can of course list it on our NFT marketplace for the higher cost you desire. Or at anytime, sell it back into the DEX.

zkCronies may be found on our NFT marketplace here and on our DEX here

Tips on Handling DN404s

Remember that holding the base unit amount of the ERC20 token will automatically mint an NFT to your wallet and removing the ERC20 will burn the NFTs from your wallet in the order that they were received. If you have an NFT you want to keep it would be wise to send it to a separate wallet which holds no other of the base token so that you do not accidentally burn the NFT you wish to keep.

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Alternatively you can mint DN404 NFTs over and over again until you find one you like the best by just immediately selling them back into the DEX and purchasing a new one.

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In the case of zkCronies example it takes just 1 full ERC-20 zkCronie to mint an NFT counterpart. This is not a requirement of the protocol. There could be any base unit the developer chooses. For example it could take perhaps 2000 Sea Crystal tokens to mint a Mystic Sea Dragon NFT.

Whats next

Our community can expect to see many more DN404 NFTs released as we believe it will be very popular and have great synergy in our DEX/Marketplace platform. Our Mystic Dragon release on Cronos zkEVM will leverage this protocol as well as our partnered release with Cronos SITH. We are excited to see our communities response as we add quality of life features to better support this exciting new protocol.

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