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In the blockchain world, ERC-404 is a new token standard launched in February 2024. This token standard helps users create new tokens that share the characteristics of ERC-20 and ERC-721.
It is a mixture of many tokens used to increase liquidity. Now, it’s time to make a token like ERC-404 that offers various advanced features and unlocks decentralized financial services.
According to the global market, the Ethereum blockchain tokens market was valued at around $17.32 billion in 2023, and it is projected to reach around $842.23 billion by the end of 2031.
This robust growing data can be a massive turning point for those who want to make an ERC-404 token and increase their connectivity to the cryptocurrency market.
Let’s connect to learn about ERC-404 token development and what deployment methods should be used in overall development.
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Quick Summary: In this blog, we will explore ERC-404 token development and its features, cost, robust development stage, and monetization techniques.
What is an ERC-404 Token?
Ethereum Request for Comment-404(ERC) is a token standard that works as a semi-fungible token(SFT) on the Ethereum blockchain. The ERC-404 token combines the features of both fungible and non-fungible tokens(NFTs).
ERC-20 is a fungible token, and ERC-721 is a non-fungible token. This token allows users to perform secure transactions with high-rated payment gateway integration and to invest in fractional shares.
- The ERC-404 token allows gamers to invest in fractional gaming assets and sell, buy, and trade game products.
- It allows users to easily exchange their fungible and non-fungible tokens, attracting users to connect with it.
- This token works in various sectors, such as gaming assets, decentralized finance(DeFi), and real-world assets.
7 Key Steps For ERC-404 Token Development
The ERC-404 token development is not easy; it involves many deployment methods and strategies. There are two types of development: hypothetical and custom tokens. For a successful ICO token development, you need to follow these development stages that explain in detail every process:
- Define Purpose and Use Case
- Define Tokenomics
- Smart Contract Design
- Write Coding
- Test the Token
- Deployment
- Monitor and Maintain
1. Define Purpose and Use Case
In this first stage of development, define your ERC-404 purpose, what your token would do, and which services it provides. Observe the existing tokens in this digital cryptocurrency market and understand their services and functionalities. Mention the sectors of your token, such as DeFi, NFT, and gaming. Identify the users for your ERC-404 token.
2. Define Tokenomics
In this second stage of token development, hire coin developer to define your token specifications that how your ERC-404 token will behave in the Ethereum blockchain ecosystem. It includes many services that will offer by the tokens such as distribution model, supply, incentives, utility, mint mechanism, and burn.
3. Smart Contract Design
Let’s come to the third stage of ERC-404 token development, after completion of token specifications, it’s time to design smart contracts with unique functionalities. Observing or analyzing the existing smart contract design of various tokens such as ERC-20 and ERC-721. These existing tokens can help you for selecting the best functionality and state variables.
4. Write Coding
Coding is the most crucial part of the ERC-404 token development in this fourth stage of development. For a successful token development, you must hire experienced developers from a dApps development company. Select the best platforms and programming languages for writing the code. Solidity is one of the most convenient and efficient coding languages.
5. Test the Token
Let’s move to the fifth step of ERC-404 token development, after completion of coding, now test your ERC-404 token under various circumstances. Scans for the bugs or glitches generated during the coding and designing phases. Ensure that all features and functions are working correctly and check security measurements.
6. Deployment
Enter the deployment phase and assemble a highly experienced development team from an NFT marketplace development company to successfully deploy the token on the Ethereum blockchain network.
This phase involves many frameworks, such as Hardhat, Truffle, and Remix IDE. These tools can attract more users and easily interact with all of the token’s services.
7. Monitor and Maintain
Let’s finish the ERC-404 token development process. After successfully deploying the token on the Ethereum blockchain network, it’s time to monitor its performance. Track every operation to ensure that it will work properly and users will not face any issues. Update the outdated features and functions of the token with their latest versions.
10 Advanced Features For ERC-404 Token Development
If you want to develop an ERC1155 token, you need to observe the robust features that are also included in the ERC1155 token. So, here we provide the following features that can enhance security measurements and scalability:
1. Multi-Signature Support
An ERC-404 token offers multi-signature support for various crucial operations requiring additional transaction security.
2. Gas Optimization
Optimization in the ERC-404 token can reduce gas costs and transaction fees on high-value transactions.
3. Cross-Chain Compatibility
This token allows users to transfers ERC-404 tokens on different platforms without any fees such as Binance, Polygon, and Smart Chain.
4. Social Token Integration
With the help of this feature, it allows users to earn reward and points depending on the social engagement and traffic.
5. Automatic Token Burn
In this, a small percentage of every transaction will be burn and it can reduce the supply time and increase the valuations.
6. Advanced Tokenomics
ERC standard 404 offers a lock-in token period that provides rewards and staking for long-term investments of tokens.
7. On-Chain Governance
This token allows users to vote on protocol changes and demand more decision-making. It also allows users to upgrade contract features.
8. Dynamic Tax and Fee
The ERC-404 token offers users a dynamic tax on their transactions, and the fee depends on the size and frequency of the transactions.
9. Access Controls
It allows only authorized users to perform sensitive actions such as burning and minting. To integrate this feature into your token, consult with an ICO token development company.
10. Upgrade Contracts
The ERC-404 token allows users to upgrade their smart contracts using the proxy pattern without changing the token address.
The Cost of ERC-404 Token Development
The cost to make an ERC-404 token is based on various factors like infrastructure, development team, maintenance, functionality, features, and deployment platforms.
These factors can greatly impact the overall development cost and fluctuate it at the last moment. There are extra expenses that can affect the budget of businesses, such as project requirements, design, compliance costs, community, marketing, security audits, and testing.
The crypto token development costs around $8,000 to $25,000 or more. So, here we provide the cost table to easily understand the overall ERC-404 token development cost:
ERC-404 Token Development |
Estimated Cost |
Time Frame |
|
Basic Token Development |
$8000 – $14000 | 2 to 5 Months |
|
Mid-Complex Token Development |
$14000 – $22000 | 5 to 8 Months |
|
High-Complex Token Development |
$25000+ | 9+ Months |
How to Make Money by Creating ERC-404 Tokens?
You have created a great ERC-404 token but now you don’t know how to earn money from it. Knowing about earning money is very important for a business because if you have invested in something, then you should also get its returns. So, here we provide the best monetization techniques that explore profit generation ways:
- Token Sale
- Staking
- DAO Participation
- Transaction Fees
- Partnerships and Collaboration
1. Token Sale
Let’s begin the first monetization technique: Token sales are one of the most efficient and convenient ways for businesses to generate new revenue streams. Selling tokens to early investors and providing huge discount offers can increase the capital of the ERC-404 token. So, token sales can increase the valuation and grow your project more.
2. Staking
In this second monetization technique, ERC-404 tokens allow users to lock their tokens for a long period of time to earn rewards and stake them. You can charge fees on every reward the user earns through your ERC-404 token. So, these staking and yielding farming can generate revenue streams for entrepreneurs to grow their businesses.
3. DAO Participation
Let’s move to the third monetization technique. The ERC-404 token offers DAO participation, allowing users to vote for improvements and add other features or services. So, by voting on users, you should introduce services or features for which users have to pay to benefit your business or increase the valuation.
4. Transaction Fees
In this fourth monetization technique, the ERC-404 token charges a fee for every transaction your token makes. For example, if a user wants to purchase or buy services from the ERC-404 token, the transaction fees will be included in the checkout process. According to the Ethereum development company, transaction fees can generate new revenue streams and lead to the next level.
5. Partnerships and Collaboration
Entering the final monetization technique, ERC-404 tokens allow partners with professional or experienced businesses to show their services and features on your platform.
Earn a commission-based income on every sale of their services or products. Different partnership options include DeFi platforms, dApps, and NFT marketplaces.
How Dev Technosys Will Help You?
We have reached the final stage of this blog. As we discussed earlier about ERC-404 token development and what massive features need to be installed on it. Ethereum blockchain tokens are one of the trends in the digital cryptocurrency world, and we also explore various monetization techniques for generating revenue streams. It includes fungible and non-fungible tokens that can enhance the user’s experiences for transferring assets across various blockchain platforms.
Do you also want to participate in this digital cryptocurrency world? Then, share your project requirements with Dev Technosys, a successful token development company that delivers efficient token apps.
Frequently Asked Questions
1. How Much Does it Cost to Make an ERC-404 Token?
The ERC-404 token development services cost ranges from $8,000 to $25,000. This can based on various crucial factors like deployment platforms, features, size, functions, infrastructure, and development team.
2. How Long Does it Take to Create an ERC-404 Token?
Building an ERC-404 token with basic functionality can take 2 to 5 months. Building a complex token with advanced functionality can take 6 to 9 months, depending on the project’s complexity and requirements.
3. Why do Businesses Invest in ERC-404 Token Development?
The Ethereum blockchain network is considered one of the most profitable opportunities, and in the coming years, it will grow more as expected. So, here are a few points of benefits:
- Increased Sales
- Monetization Models
- Brand Loyalty
- Community Engagement
- Data Insights
4. Which Technologies Are Used For ERC-404 Token Development?
Modern or powerful technologies are used to make an ERC-404 token; here is the list of the technologies:
- Solidity
- Ethereum Blockchain
- Metamask
- Truffle Suite
- js
5. How Can I Monetize My ERC-404 Tokens?
To monetize ERC-404 tokens to generate new revenues for businesses. So, here we provide the best monetization techniques:
- Advertising
- Transaction Fees
- Partnerships
- Token Sale
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