To “color” MEME, does the BC 404 protocol promoted by Color Protocol have any new tricks?

With the recent German government’s BTC sell-off ending, many projects have also fallen out of the “golden bottom” after the previous round of rapid decline. The crypto market is ushering in a slow rebound, and the MEME project is also the first to bear the brunt and has performed well. For investors, this is also an important opportunity to find potential projects and plan for the future.

MEME is an unavoidable topic for this bull market. We all know that the high valuation of VC projects and unreasonable token allocation and distribution have forced market funds to shift to MEME, thus creating the prosperity of MEME. Despite this, MEME's inherent strong user base and consensus are also important reasons for its market favor.

However, the current market generally pays more attention to homogeneous MEME tokens, while paying less attention to MEME in the form of NFT. MEME tokens in the form of NFT are subject to certain restrictions mainly due to the depth of transaction circulation. However, from the perspective of value expression, MEME is also widely circulated because of each "small picture", so the NFT version of MEME is very important in the ecosystem. It also played a key role, but currently it just lacks an opportunity.

The ERC 404 protocol has therefore entered the vision of developers. ERC 404 is also called a semi-fungible token. ERC 404 tokens have the properties of both fungible and non-fungible tokens and can be split and After the merger, Color Protocol further optimized on this basis and launched BC 404, bringing new gameplay and application scenarios to the industry.

What is Color Protocol

Early NFT is actually a "dyed" homogenized token. The original intention of Color Protocol is to "dye" the homogenized token, which adds a new color to the MEME coin. Community elements with MEME attributes such as pictures increase the breadth of communication and recognition, which is conducive to MEME coins gaining a higher user base and value.

For this purpose, Color Protocol has launched a conversion pool. In short, users can convert the homogeneous MEME tokens in their hands into BC 404 semi-fungible tokens with NFT image attributes, so MEME coins can be displayed, traded, and more like NFTs. Of course, users can also convert these BC 404 tokens into the original homogeneous tokens later, and the entire process will not be affected in any way.

Relatively speaking, we can think of Color Protocol as a launchpad based on MEME collections, helping users display and promote MEME tokens, thereby promoting the healthy development of the MEME ecosystem.

Technical Advantages of Color Protocol

BC 404 launched by Color Protocol is evolved from ERC 404 and has the dual attributes of fungible tokens and non-fungible tokens. Users can realize the tokenization through this protocol Split and combine, such as fragmenting NFT into homogeneous tokens, or combining homogeneous tokens into NFT. The generation ratio of ERC 404 NFT is fixed, for example, 10 ERC404 tokens can generate 1 NFT. , then this ratio will not change from the beginning of token generation.

Compared with ERC 404, BC 404 adds a curve model binding function and adds a generation curve model during the token generation process, so that the token generation rate or quantity can be controlled based on the difficulty of generation. , that is, the difficulty of each NFT will increase. For example, the initial ratio is 10:1 for NFT generation. As the number of participants increases, this ratio will increase every time an NFT is generated, and may gradually become 15:1 later. This situation is similar to the mining difficulty mechanism, which also means that new NFTs are harder to generate than previous NFTs, thereby increasing the scarcity and value of the token.

In this way, there will be a different number of fungible tokens behind each BC 404 NFT token. Similarly, the NFT ID number may not be consecutive or start counting from 1#, but based on the token content to count. In addition, the transfer and transaction of BC-404 homogeneous tokens will also trigger the destruction of the corresponding NFT, which also means that the NFT ID number will only appear once, and the destruction of BC-404 NFT will produce deflationary properties.

For investors, new NFTs are also likely to generate a corresponding premium relative to fungible tokens, thereby increasing the value of NFTs. The increase in the cost of generating NFT will also increase the scarcity of NFT, and the uniqueness of the number also makes NFT more unique, which can lead to more gameplay worthy of exploration.

Recent developments of Color Protocol

In addition to its technical advantages, Color Protocol has also established cooperative relationships with a number of well-known institutions/project parties to jointly expand the scope of applications and scenarios, such as Orbiter Finance, Pandora, UXLINK, Scattering, NFPrompt and others have reached strategic cooperation and launched corresponding activities to promote the development of the community and the popularity of BC 404.

Color Protocol has completed the conversion activity between PEPE and COLORPEPE before. The total amount of COLORPEPE is 42 million, 80% of which are generated in the conversion pool, the team ownership is 0, and the remaining 20% ​​is used for the liquidity plan. We can also wait for the official to launch further conversion activities for other MEME tokens later.

Color Protocol currently does not have its own mainnet token, but the official launched the Point airdrop function in April this year. Users who participate in the points airdrop have the opportunity to obtain IDO's whitelist, become the first batch of users in the conversion pool, and obtain corresponding quotas. Currently, this activity has ended.

Of course, users who have not participated in the points activity have other opportunities to obtain airdrop opportunities. For example, the official team recently launched the ORBGUY NFT airdrop rules in conjunction with Orbiter Finance, and conducted a snapshot airdrop for COLORPEPE NFT holders and PEPE with ORBGUY holders. ORBGUY airdrop worth $50,000.

Participants can purchase and hold COLORPEPE NFT before 14:00 on July 14. The official will take a snapshot to receive airdrop rewards. It is expected that the official will further increase the empowerment of COLORPEPE and ORBGUY in the future.

Judging from the current official actions, the project team is more focused on empowering COLORPEPE. Behind COLORPEPE is PEPE. In the future, it may continue to launch other popular MEME conversion activities and also empower them, such as In airdrops, etc., users’ participation risks are lower and they can obtain higher expected returns.

Summary

Color Protocol does not produce new MEME, it just reprocesses MEME. Because of the attributes of BC 404, there is almost no additional minting cost for users participating in the Color Protocol conversion pool, but they have unlimited imaginable overflow value for new NFT tokens. In other words, if participants calculate based on the currency standard of participation, there is no risk. For example, in the process of PEPE exchanging COLORPEPE, the value of COLORPEPE will be greater than or equal to the value of PEPE behind it, otherwise there will be arbitrage opportunities in the market.

In other words, Color Protocol is very user-friendly, and at the same time, there will be many fresh gameplays based on BC 404, which is of great significance to the activeness of the ecology. At the same time, we can also see from COLORPEPE’s activities The official is also willing to empower the post-conversion tokens to provide more potential value to holders. Coupled with Color Protocol’s airdrop expectations, it is worthy of continued attention and participation.

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