With the recent end of the BTC sell-off by the German government, after a rapid decline, many projects have also fallen to the "golden bottom". The encryption market has ushered in a slow Rebound, with MEME project leading the way with impressive performance. For investors, this is also an important opportunity to find potential projects and lay out the future.

For this round of bull market, MEME is an unavoidable topic. We all know that the overvaluation of VC projects and the unreasonable distribution of tokens have forced market funds to turn to MEME, thus contributing to the prosperity of MEME. Nevertheless, the strong user base and consensus of MEME are also important reasons for its market favor.

However, the market currently tends to follow homogeneous MEME tokens, and there are relatively fewer follows for MEME in the form of Non-fungible Tokens. MEME in the form of Non-fungible Tokens is mainly limited by the issue of transaction circulation Depth. However, in terms of value, MEME has been widely circulated because of these individual 'small pictures', so the Non-fungible Token version of MEME also plays a key role in the ecosystem, it just lacks an opportunity at present.

The ERC 404 protocol has therefore come into the view of developers. ERC 404 is also known as semi-fungible Token. ERC 404 Token has both the characteristics of fungible and non-fungible Tokens, which can be split and merged. Color Protocol has further optimized on this basis and launched BC 404, bringing new gameplay and application scenarios to the industry.

What is Color Protocol

Early Non-fungible Tokens were actually a type of 'dyed' Fungible Token. The original purpose of the Color Protocol was to 'dye' Fungible Tokens, thus adding community elements such as images and other MEME attributes to MEME coin. This improves its reach and recognition, and helps MEMEcoin gain a larger user base and value.

For this purpose, Color Protocol has launched a conversion pool, in short, users can convert their fungible MEMEToken into semi-fungible Tokens with the attributes of BC 404 Non-fungible Token images, so that they can display, trade, and play with MEME coins just like Non-fungible Tokens. Of course, users can also convert these BC 404 Tokens back into the original fungible Tokens later, and the entire process will not be affected.

Relatively speaking, we can think of Color Protocol as a launchpad built on the basis of MEME collectibles, helping users to showcase and promote the MEME token, thus promoting the healthy development of the MEME ecosystem.

Technical Advantages of Color Protocol

The BC 404 launched by Color Protocol is derived from ERC 404 and has the dual attributes of fungible tokens and non-fungible tokens. Users can use this protocol to split and combine tokens, such as fragmenting non-fungible tokens into fungible tokens or combining fungible tokens into non-fungible tokens. The generation ratio of ERC 404 non-fungible tokens is fixed, for example, 10 ERC404 tokens can generate 1 non-fungible token, and this ratio will not change from the start of token generation.

Compared to ERC 404, BC 404 adds curve model binding function, which adds curve model generation process in Token generation, so as to control the Token generation rate or quantity based on the generation difficulty, that is, the difficulty of each Non-fungible Token will increase. For example, the initial ratio is 10:1 for Non-fungible Token generation. With the increase of participants, this ratio will increase for each generated Non-fungible Token, and it may gradually become 15:1. This situation is similar to the Mining difficulty mechanism, which means that the new Non-fungible Token is more difficult to generate than the previous Non-fungible Token, thus increasing the scarcity and value of the Token.

In this way, there will be different numbers of Fungible Tokens behind each BC 404 Non-fungible TokenToken. Similarly, the Non-fungible Token ID number may not be consecutive or counted from 1#, but counted according to the Token content. In addition, the transfer and trading of BC 404 Fungible Tokens will also trigger the corresponding destruction of Non-fungible Tokens, which also means that the Non-fungible Token ID number will only appear once, and the destruction of BC-404 Non-fungible Tokens will generate deflationary properties.

For investors, the new Non-fungible Token may have a corresponding premium compared to fungible tokens, thereby increasing the value of Non-fungible Tokens. The increased cost of generating Non-fungible Tokens also increases their scarcity, and the unique numbering makes Non-fungible Tokens more unique, which can create more long-worthy gameplay.

Recent Updates on Color Protocol

In addition to its technological advantages, Color Protocol has established partnerships with long well-known institutions/project parties to expand its application scope and scenarios, such as strategic cooperation with Orbiter Finance, Pandora, UXLINK, Scattering, NF, etc., and launched corresponding activities to promote community development and the popularization of BC 404.

Color Protocol has completed the conversion of PEPE to COLORPEPE. The total supply of COLORPEPE is 42 million, with 80% generated in the conversion pool, 0% vested for the team, and the remaining 20% used for the Liquidity plan. We can also look forward to the official launch of conversion activities for other MEME tokens in the future.

Color Protocol currently does not have its own Mainnet Token, but the official launched the Point token Airdrop feature in April this year. Users participating in the token Airdrop have the opportunity to obtain the IDO Allowlist, become the first batch of users to convert in the pool, and obtain corresponding quotas. The event has ended at present.

Of course, users who did not participate in the points activity have other opportunities to get Airdrop opportunities. For example, recently, the official cooperation with Orbiter Finance launched the Airdrop rules for ORBGUY Non-fungible Tokens, conducting a Snapshot Airdrop for COLORPEPE Non-fungible Token holders and PEPE with ORBGUY holders, with a value of $50,000 ORBGUY Airdrop.

Participants can purchase and hold COLORPEPE Non-fungible Tokens before 14:00 on July 14th to receive Airdrop rewards through an official Snapshot. It is expected that the official will further enhance the empowerment of COLORPEPE and ORBGUY in the future.

From the current official actions, the project team seems to focus more on empowering COLORPEPE, which is based on PEPE. In the future, they may continue to launch conversion activities for other popular MEME tokens and empower them in the same way, such as Airdrop, with relatively low user participation risk and the potential for high expected returns.

Summary

Color Protocol does not produce new MEME, it only reprocesses MEME. Due to the properties of BC 404, there is almost no additional minting cost for users participating in the Color Protocol conversion pool, but they have the overflow value of unlimited imagination for new NFT tokens. That is to say, if participants calculate according to the coin-based participation, there is no risk, such as in the process of exchanging PEPE for COLORPEPE, the value of COLORPEPE will be greater than or equal to the value of the underlying PEPE, otherwise there will be Arbitrage opportunities in the market.

In other words, Color Protocol is very user-friendly, and it will also generate a lot of new play on the basis of BC 404, which is of great significance for the activity of the ecosystem. At the same time, we can also see from the activities of COLORPEPE that the official has the intention of empowering the converted tokens, providing more long potential value for holders, coupled with the expected Airdrop of Color Protocol, it is worth continuing to follow and participate.