Managing your Tomoji NFT
Here, we explore how ERC-404 works and the important considerations for managing these assets, especially when it comes to transferring tokens and retaining linked NFTs.
The Relationship Between $LONG Tokens and LONG NFTs
Contrary to what some might assume, there is no direct one-to-one correspondence between $LONG tokens (ERC20) and LONG NFTs (Non-Fungible Tokens). Instead, their relationship is managed under a "First In, First Out" (FIFO) mechanism orchestrated by the Tomoji smart contracts. This approach dictates the outcomes for receiving and sending the NFTs.
Ownership:
A whole ERC20 $LONG token in your wallet = LONG NFT in your wallet
A fraction of ERC20 $LONG token in your wallet = no ownership of LONG NFT
A new NFT will be minted upon stacking a whole $LONG token in the wallet.
Transferring:
Transferring a whole ERC20 $LONG token = transferring one LONG NFT
Transferring a fractional amount will burn the NFT,
A new NFT will be minted upon stacking a whole $LONG token in the wallet.
Case Study 1: The Impact of Transferring $LONG
Consider a hypothetical scenario:
Total $LONG supply of 4 tokens
Alice owns 2 $LONG tokens and 2 LONG NFTs labeled ID=1 and ID=2.
Bob owns 2 $LONG tokens and 2 LONG NFTs labeled ID=3 and ID=4.
John has zero balance.
Alice transfers 0.5 $LONG to John, which will burn her ID=1 LONG NFT (assuming ID=1 arrived in her wallet before ID=2).
Subsequently, Bob transfers 0.5 $LONG to John. Similar to Alice's transaction, this results in the burning of his ID=3 LONG NFT (assuming ID=3 arrived before ID=4).
As a result of the above transactions, John accumulates 1 $LONG token and receives a LONG NFT.
Due to the "First In, First Out" rule, John received an NFT labeled ID=1 because ID=1 was burned earlier than ID=2. Next, when someone stacks another whole $LONG token, they will receive an NFT labeled ID=2.
Case Study 2: Changing your LONG NFT
Want another LONG NFT to replace the one you currently have?
Send 0.5 $LONG (ERC20) to another wallet that belongs to you. This will initiate a burn of your existing NFT on your initial wallet.
Send 0.5 $LONG (ERC20) back to your initial wallet. A new NFT will be minted in your wallet.
Important Reminder for NFT Reveal Events
Holders of $LONG tokens and LONG NFTs must understand that transferring any portion of their $LONG tokens could lead to the burning of their NFTs. As these events can significantly affect the value and composition of their digital assets, awareness and careful management are essential. Holders need to ensure they transfer the entire NFT rather than just the tokens if they wish to retain their pictorial representations.
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