ERC-502 Protocol
Last updated
Last updated
The ERC-502 mechanism is inspired by the ERC-404 protocol and has been modified and improved upon by Trend. It builds on ERC-404 to create a protocol that incorporates several innovative features, including sell distribution, automatic burning, NFT holding mining, as well as user and developer incentives. In the technical architecture of the protocol, it releases the liquidity of assets deployed on the protocol, redefines the duality of tokens with regard to liquidity revolution, and ensures absolute fairness in token integration.
Through the ERC-502 protocol, Gas costs can be reduced and the problem of unlimited growth of Token ID can be solved. When buying tokens, the change in the total amount of currency held (balanceOf) reaches the amount of the set NFT rarity, which will be accompanied by the destruction (burn) and mint (mint) of the NFT. In the burn function, the destroyed Token ID will be stored in the DoubleEndedQueue. If there is no destroyed Token ID in the DoubleEndedQueue during mint, a new Token ID will be created. When there are destroyed Token IDs in the DoubleEndedQueue, one of them will be taken as the new Token ID for this mint. Instead of generating a new Token ID every time mint is performed, it effectively avoids the problem of unlimited growth and reduces gas. After mint, use bit mask ((1 << 160) - 1 & ((1 << 96) - 1) << 160) to store the number of NFT holdings at each level to reduce the storage cost of EVM, and more Further reduce gas.
Through the ERC-502 protocol, the required amount of companion NFT can be customized. For example, Trend’s $TRN token has levels 1 to 5 of NFT, and each level corresponds to a different required token.
In typical project sales distribution designs, a "sales tax" approach is often adopted, where a certain percentage is directly deducted from the sold tokens before the transaction, reducing the actual tokens received by the user. The ERC-502 protocol allows for the entire sold token amount to be put into the Swap transaction first, ensuring users receive their full deserved earnings. After the transaction, single or multiple distribution addresses with customizable distribution ratios can be set.
Through the ERC-502 protocol, a threshold can be set in the sales distribution mechanism. When the token circulation reaches the threshold, the tokens are no longer burned. The tokens originally designated for burning remain in the DEX liquidity pool, and the required number of tokens for the corresponding NFTs can be reduced.
Through the ERC-502 protocol, a smart contract can be set to release a certain proportion of tokens from the bottom pool of the token trading pair every hour for customized purposes.
Customizable multi-tier token and accompanying NFT mechanism
Reduction of Gas costs and resolution of infinite Token ID growth issue
Customizable multiple distribution mechanisms after selling
Customizable burn limitation mechanism after selling
Customizable bottom pool outflow distribution mechanism
Coming soon.
