What Innovations Does the Popular ERC314 Protocol Offer?

What is the ERC314 protocol? Following the popular ERC404 protocol, the ERC314 protocol, named Simp, launched on the 21st and reached a market value of $50 million. It is an experimental token. Let’s look at the main features of this protocol:

Features of ERC314

ERC314 specialty

• Trading without reliance on DEX or SWAP: ERC314 tokens can be transferred like native tokens without the need for DEX or SWAP, making transactions simpler, faster, and reducing transaction costs.
• Customizable token attributes: The ERC314 standard allows token creators to customize the name, symbol, total supply, and destruction mechanism of the token.
• Supports token distribution and destruction: The ERC314 standard allows token creators to distribute and destroy tokens via smart contracts.
• Enhanced transaction security: The ERC314 standard introduces new security mechanisms to improve transaction security.

On the evening of March 20, 2024, the ERC314 protocol token SIMP was officially launched. Prior to this, the project had raised 20 ETH in funding, with a total token supply of 1 million. The allocation of funds was divided as follows: 45% for liquidity provision (LP), 45% for seed round pre-sale participants, and 10% for a multisig CEX wallet. A distinctive feature of this project is that users can purchase tokens by transferring ETH to its contract, and can also sell tokens by sending them back to the contract. This method incurs much lower gas fees compared to transactions on DEXs.

On the launch day, the price of the token skyrocketed by a hundredfold, reaching a high of $53. However, on March 21, the official ERC314 Twitter account @Simplify_ERC314 announced that the project was a social experiment. Soon after, community members reported issues with the protocol’s formula, stating that the LP owner’s permissions had not been properly transferred. Additionally, many experienced increased transaction losses due to MEV attacks during trading. Although professional smart contract engineers later explained that the xy=k formula was used during sales but not for purchases, this led to further doubts. Within less than a day, the price plummeted from its peak to around $6, a drop of nearly 90%, and even briefly neared zero, falling to about $0.08. The price has currently recovered to around $4, and a plugin to prevent MEV attacks has been added.

With the introduction of the ERC314 protocol, the enthusiasm for the 314 protocol has gradually spread to various blockchains. Previously, the protocol standard that garnered attention might have been the ERC404 protocol led by Pandora. Consequently, new projects have been emerging recently, and this trend is likely to spread elsewhere.

On the Binance Smart Chain (BSC), the X314 token launched on March 27, achieving a thousandfold increase within just two weeks, from an initial price of $0.00349 to about $3, with a peak surpassing $5.3. Currently, it can be exchanged and purchased on X314.app.

Additionally, on March 22, the LONG314 token was also launched on the BSC, where users can trade tokens by transferring BNB to the contract address.

On March 26, the project’s officials stated that to optimize the shortcomings of ERC314 and LONG314, plans were in place to extend and upgrade the protocol by incorporating a sales cooldown mechanism and LP burning mechanism to prevent bot attacks and drive up token prices.

On March 29, the X314 protocol token was also launched on the BSC.

On the same day, March 29, X314 started a staking lottery activity, upgrading the contract to include a 60-second transaction cooldown, an automatic daily burn of 6% LP, and the destruction of over 1 million X314 tokens each day.

By April 8, the price of X314 tokens continued to rise, momentarily breaking through $5.3.

Here is the translation of the overview of the current most popular 314 token projects:

1. X314: Priced at about $3, with a total supply of 21 million. The market capitalization in circulation is about $33 million, and the total liquidity of LP is about $1.8 million. As the leader of the protocol, X314 inherits and innovates from ERC314 and LONG314, introducing a sales cooling mechanism and LP burning mechanism, and has conducted a 90-day staking incentive activity and community user incentive lottery. It has about 12,000 followers on Twitter.

1. LONG-314: Priced at about $0.15, with a total supply of 21 million. The market capitalization in circulation is about $6.18 million, and the total liquidity of LP is about $360,000. LONG314 is a token issued on the basis of ERC314 by the X314 project, and is tied to the 314 protocol Swap platform LongSwap.

2. BNB314: Priced at about $0.04, with a total supply of 20.23 million. The market capitalization in circulation is about $1.08 million, and the total liquidity of LP is about $250,000. BNB314 was launched on April 6th, consistent with X314 in terms of buying and selling operations, trading cooling mechanisms, and clamp prevention, but with a daily LP contraction ratio of 12%.

3. Y314: Priced at about $0.04, with a total supply of 20.4 million. The market capitalization in circulation is about $900,000, and the total liquidity of LP is about $130,000. Y314 was launched on April 6th, branding itself as the “first 314 protocol chromosome concept coin,” but it carries higher risks and has weaker associations with X314.

4. BTC314: Priced at about $0.04, with a total supply of 17.8 million. The market capitalization in circulation is about $720,000, and the total liquidity of LP is about $130,000. BTC314 was launched on April 5th, similar to other 314 protocol tokens, but with a 24-hour automatic LP burning rate of only 2%.

In summary, this 314 protocol is a new innovation, despite issues with the first version. It’s worthwhile to maintain curiosity and explore these innovations, such as trying out a small amount of money on X314 or engaging with it, as well as exploring other new elements like playing rune pages, which have recently become popular. Token strategies will still be discussed in our star group.

Declaration:

1. This article is reprinted from Big Pie House in Books, with copyrights belonging to the original author [Teacher Zhu 321]. If there are any objections to the reprint, please contact the Gate Learn team, and the team will process it according to relevant procedures as quickly as possible.

2. Disclaimer: The views and opinions expressed in this article represent only the personal opinions of the author and do not constitute any investment advice.

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