# ERC404

**BSC ERC404** by GTokenTool is an innovative "one-click" creator that merges BEP-20 fungibility with ERC-721 scarcity. This no-code tool enables native fractionalization, allowing seamless trading of high-value NFT assets as liquid tokens. Ideal for GameFi and art projects, it boosts market liquidity and lowers entry barriers on Binance Smart Chain, providing a secure, professional foundation for building hybrid token-NFT ecosystems with high investor engagement and sustainable utility.

## 📌Core Summary: BSC ERC404

**BSC ERC404** is a cutting-edge hybrid token standard that bridges the gap between fungible BEP-20 tokens and non-fungible ERC-721 assets. It enables native "fractionalization," allowing users to own and trade portions of an NFT as liquid tokens, fundamentally solving the liquidity issues associated with traditional digital collectibles.

* **Native NFT Fractionalization:** Seamlessly merges fungibility with scarcity, allowing high-value NFT assets to be traded with the ease of a standard token.
* **Dynamic Liquidity Enhancement:** Dramatically increases market activity by enabling constant buy/sell opportunities for NFT-linked assets on Binance Smart Chain.
* **Lower Entry Barriers:** Allows smaller investors to gain exposure to premium NFT collections by purchasing fractions, driving broader community engagement.
* **Unified No-Code Deployment:** Provides a secure, "one-click" professional foundation to launch complex hybrid ecosystems without specialized smart contract development.
* **Optimized for GameFi & Digital Art:** Specifically designed for projects requiring both liquid currency and unique asset scarcity within a single ecosystem.

> **Key Value:** Revolutionize your digital asset strategy by combining the best of both worlds—token liquidity and NFT scarcity—to create a high-engagement, sustainable marketplace.

***

## 1. Introduce

It is a new standard that combines NFTs with tokens. When a user purchases a token on a decentralized exchange, an NFT is automatically generated.

## 2. Create ERC404 Operation Steps

Tip: Please install the MetaMask plugin first. Tutorial: <https://docs.gtokentool.com/v/en/fu-zhu-xin-xi/metamask-installation-tutorial>

### (1) Connect Wallet

Enter the creation page: <https://gtokentool.com/tokenfactory>，Click on the upper right corner, connect to MetaMask Wallet, and switch to the main network (using BSC test network as an example).

After completion, you will see the "Chain Name" and your "Wallet Address", as shown in the following figure:

<figure><img src="/files/VpOip0G18SSg9Z9dDsac" alt=""><figcaption><p>connect wallet &#x26; select network</p></figcaption></figure>

### (2) Choose Token Mode

Click on the dropdown menu and select "ERC404".

<figure><img src="/files/Z1lX8JH5APQtQgmWhYs5" alt=""><figcaption><p>choose token mode</p></figcaption></figure>

### (3) Fill in your token information

Enter the token information, assuming we create a token called "G TOKEN", fill in the following:

* **Token Name:** G TOKEN
* **Token Symbol:** G T
* **Decimals:** 18 (Number of decimal places)
* **Total Supply:** 1000000 (Number of tokens)
* **Select an exchange:** pancakeSwapTest V2

<figure><img src="/files/Uj4dj4Ucvi8frTE13bTD" alt=""><figcaption><p>fill in the token info</p></figcaption></figure>

After completing the input, click "`Create`".

### (4) Complete

Click "`Confirm Creation`" and pay the gas fee in MetaMask Wallet to complete the process.

<figure><img src="https://lh7-us.googleusercontent.com/DlgfMu8mPTlR_aNQgEinJJhHoCjN1Qry1P_YMPQ0p28PpNO1p-iRJOopJuHRx6EohVvGOGNR8J4EaVjhW2WL65C18LLKzJOQJtmsCdtMIyNyGhMwA1zdrcQ__wrp5k3eTXMg6_zzWT6-Cw4-os5k4ys" alt=""><figcaption><p>confirm creation</p></figcaption></figure>

<mark style="background-color:red;">Attention:</mark>

After the token is created, it can only be transferred and cannot be traded. To make tokens tradable, you need to go to PancakeSwap to create a liquidity pool. Tutorial: <https://help.gtokentool.com/qu-zhong-xin-hua-jiao-yi>

***

## ❓FAQ

### Q: What is an ERC404 token?

**A:** ERC-404 is an experimental hybrid token standard. Its core feature is the automatic two-way binding and conversion between ERC20 tokens and ERC721 NFTs, realizing the logic of "holding tokens means holding NFTs, fragments are tradable, and a full token unlocks an NFT". <mark style="color:violet;">1 complete ERC404 token = 1 corresponding NFT; holding ≥1 token automatically grants the NFT; selling or splitting the token will automatically burn the NFT.</mark>

### Q: What are the differences between ERC404, ordinary tokens and NFTs?

**A:** **ERC20:** Divisible, no NFT functionality, high liquidity, no collectible value; **ERC721 NFT:** Unique, indivisible, low liquidity, with collectibility and rarity attributes; **ERC404:** **Combines both features** — divisible trading as tokens + automatic issuance of an NFT collectible when holding 1 full token or more.

### Q: I sold part of my tokens, why did my NFT disappear?

**A:** This is inherent to its mechanism: when your balance drops from 1.0 to 0.9 **(below 1), the NFT is automatically burned**. If you repurchase tokens to reach a balance of ≥1 again, **a new NFT will be automatically minted (its attributes and rarity may change)**.

### Q: Can I trade only the NFT without trading the tokens?

**A:** No. ERC404 features strong binding: trading tokens will automatically affect the associated NFT; transferring the NFT will also transfer the corresponding tokens. It is not possible to sell the NFT alone while keeping the tokens.

***

### 🤝 Connect with GTokenTool <a href="#connect-with-gtokentool" id="connect-with-gtokentool"></a>

* 💬 **Telegram Community:** [Click to join our official group](https://t.me/GToken_EN)
* 💻 **Official Website:** [Visit our official site for full features](https://gtokentool.com/)
* 🐦 **Twitter (X):** [Follow us for the latest updates](https://twitter.com/GTokenTool)
* 📺 **Video Tutorials:** [Subscribe to our YouTube Channel](https://www.youtube.com/@GTokenTool)

> ⚠️ **Risk Warning & Disclaimer**
>
> GTokenTool reserves the right to modify this notice without prior notice. All platform information is for reference only. We do not endorse any virtual assets or activities. Virtual assets are highly volatile and carry significant financial risk. Please invest with caution and conduct your own due diligence.


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