ERC-404 standard - How to earn money with Lens Protocol (Part ll)

Can you imagine what a union between fungible tokens (cryptocurrencies) and non-fungible tokens (NFTs) would look like? Don't worry, you don't have to imagine it anymore, this combination already exists and is considered one of the biggest innovations in the blockchain sector after its predecessors, the blockchain technology itself and digital assets. Want to know a little more about it? Let's dig a little deeper then.

The ERC-404 standard is the official name of this new variant, which serves as a bridge between two very important technological players, linking the non-fungibility and the fungibility of altcoins. The way this technology works is quite simple, although it might seem complex.

A tangible example of this is the $BONSAI currency, the main token of Lens protocol, although, as I said before, it emerged a little after the creation of this technology layer, and it has received a strong adoption by the users of the ecosystem. $BONSAI seamlessly merges the two technologies by maintaining non-fungibility over the issuance of tokens of the same type, increasing in value as the market fluctuates and users demand for a complete digital unit.

By combining the best of the ERC-20 (fungible tokens) and ERC-721 (non-fungible tokens) standards, ERC-404 solves the pressing problems of fractionation and liquidity of NFTs, or rather, their lack of liquidity!

Imagine this: NFTs cannot be split, which means that more than one person cannot invest in an NFT. It's all or nothing, but with ERC-404, we have the best of both worlds! Now people can buy fractions of an NFT, providing liquidity in new ways and getting the benefits of a non-fungible token.

In the case of $BONSAI, you can buy fractions of a token, but once you get enough tokens, you can complete the entire NFT. In this case, it would take 100,000 $BONSAI to get 1 full NFT, represented by a piece of artwork among all the coins. There are also four main things you can do with $BONSAI and encourage you to enjoy this new technology to the fullest, among them are:

• Collecting posts: The most popular action is to collect publications in exchange for currency, in this case, $BONSAI.

• Tipping: The easiest way to support a creator without emptying your wallet is to tip, and of course, $BONSAI supports that!

• Airdrops: Airdrops themselves are not a utility at all, but speculation and chance are part of the crypto world. $BONSAI allows the economics to flow between the ecosystem and the creators thanks to the speculation of receiving an airdrop in the near future, as they had at the beginning!

• **Providing liquidity: **One of the newest use cases for $BONSAI is the opportunity to provide liquidity in a pool through an LP (liquidity provider), earning rewards in $BONSAI while providing liquidity.

The world is moving very fast and great technological advances are emerging with it. Although this variant is something that seems to be common, it contributes a big step in the adoption of a single currency, and guess what, in just 3 months, serving as an example for many protocols and ecosystems in the world to start adopting new ways to incentivize value to their users. Do you know of another currency with these features? I'll read you in the comments box.