Introducing BUIDL 404: A Hybrid Token Enabling New Use Cases

BUIDL v1 Morphs into a Semi-Fungible Token Powered by ERC404

We are excited to announce the upcoming release of BUIDL V2, code named BUIDL 404. Based on the ERC404 unofficial standard, BUIDL 404 is a hybrid token that combines the fungibility of ERC20 tokens with the unique characteristics of ERC721 tokens. This fusion allows BUIDL 404 to serve both as a tradable token and a collectible NFT, offering unprecedented flexibility and value to holders.

What is BUIDL 404?

BUIDL 404 is an ERC404 token, integrating the properties of ERC20 and ERC721 tokens. In plain English, this means:

1. Fungible Token (ERC20): BUIDL 404 tokens can be traded on decentralized exchanges like Uniswap and Aerodrome, offering liquidity and flexibility commonly found in standard ERC20 tokens loved by degens.
2. Non-Fungible Token (ERC721): For every 21,500 BUIDL 404 held in your wallet, 1 BUIDLER NFT is minted automatically. These NFTs represent a fractionalization mechanism that enables linking fungible and non-fungible assets seamlessly.

Tokenomics of BUIDL 404

BUIDL 404 tokenomics remain the same as v1 and are designed to ensure a balanced and sustainable ecosystem. A full breakdown of the tokenomics can be found in our docs, and the key difference lies in the new NFT minting support:

• Max Supply: 215,000,000 BUIDL 404
• NFT Minting Threshold: 21,500 BUIDL 404 mints 1 NFT
• Max NFT Supply: 10,000 BUIDLER NFT collection (215,000,000 BUIDL 404 divided by 21,500 per NFT)
• Deflationary: BUIDL 404 and the corresponding BUIDLER NFTS are deflationary — for every 21,500 BUIDL 404 burned during unstaking, 1 BUIDLER NFT will also be burned forever, reducing the max supply of 10,000 BUIDLER NFTS over time.

This fixed supply, deflationary mechanism and minting ratio maintain the scarcity and value of both BUIDL 404 tokens and their corresponding BUIDLER NFTs.

How BUIDL 404 and BUIDLER NFTs Work

The interaction between BUIDL 404 and BUIDLER NFTs is straightforward yet innovative:

• Acquiring BUIDL 404: When you purchase 21,500 BUIDL 404, you automatically mint 1 BUIDLER NFT. This NFT is created and sent to your wallet immediately, symbolizing your holding.
• Acquiring BUIDLER NFTs: When you buy a BUIDLER NFT from a marketplace like OpenSea, it comes bundled with 21,500 BUIDL 404 tokens attached. This integration ensures that the value of the NFT is directly tied to the underlying tokens.

Example Scenarios

Consider different scenarios of holding BUIDL 404 tokens in your wallet:

• Holding 21,500 BUIDL 404: This balance will mint exactly 1 BUIDLER NFT.
• Holding 43,000 BUIDL 404: This amount will mint 2 BUIDLER NFTs, as each NFT corresponds to 21,500 BUIDL 404 tokens.
• Holding 10,750 BUIDL 404: No NFT will be minted, as this is half the threshold. You would need to acquire an additional 10,750 BUIDL 404 tokens to mint 1 BUIDLER NFT.

Conversely, when dealing with BUIDLER NFTs:

• Owning 1 BUIDLER NFT: This NFT can be sold on OpenSea, and the buyer will receive 1 NFT plus 21,500 BUIDL 404 tokens with the purchase.
• Owning 2 BUIDLER NFTs: Selling on OpenSea will transfer both NFTs plus a total of 43,000 BUIDL 404 tokens to the buyer.

Benefits of Holding BUIDL 404 and BUIDLER NFTs

The ERC404 standard provides several advantages:

1. Liquidity and Tradability: BUIDL 404 tokens can be easily traded on platforms like Uniswap, providing immediate liquidity. BUIDLER NFTs can be bought and sold on NFT marketplaces, adding another layer of tradability.
2. Fractionalization of NFTs: BUIDL 404 allows for the fractionalization of NFTs. By holding a specified amount of BUIDL 404, you can mint NFTs, for example, with a group of frens to work your way up to Starter VIP status — making high-value assets more accessible and tradeable in smaller fractions.
3. Future Incentives: BUIDLER NFT holders will receive special rewards and benefits in the future, including potential airdrops, exclusive access to new launches (aka Baby VIP), and other perks within the Starter ecosystem.
4. Access to IDOs on Starter: Participate in IDOs without any staking requirement. Owning 1 BUIDLER NFT is equivalent to staking 5K BUIDL 404, granting you first-come-first-serve access into launches on Starter.xyz. Owning 2 or more BUIDLER NFTs gives you earlier entry into IDOs, immediately after our Diamond Hands stakers but before Starter Tier stakers
5. Two Token Standards, One Contract: Manage your BUIDL 404 DeFi degen activity while having fun collecting and trading BUIDLER NFTs on OpenSea, all using a single contract.

Stakedrop and Airdrop for BUIDL v1

For holders staking BUIDL v1 or holding BUIDL v1 in their wallets at block number 14637357 on Base, BUIDL 404 tokens will be automatically staked on your behalf or airdropped to your wallet on a 1:1 ratio. Depositors of BUIDL v1/LP tokens on Uniswap and Aerodrome will also receive an airdrop of BUIDL 404 on a 1:1 ratio. BUIDL v1 vesting in pools will automatically produce BUIDL 404 tokens upon claiming instead of BUIDL v1.

BUIDL 404 that are staked do not mint any BUIDLER NFT while they are staked. BUIDLER NFTS remain in an internal storage while your BUIDL 404s are staked and will be transferred to your wallet once you have unstaked. Note that unstaking BUIDL 404 will be subject to burn fees according to the fee schedule outlined in our docs, thereby reducing the circulating supply of both BUIDL 404 and BUIDLER NFTS.

Conclusion

BUIDL 404 represents a significant advancement in the launchpad space, bridging the gap between fungible and non-fungible assets and enabling new use cases. By leveraging the ERC404 unofficial standard, BUIDL 404 provides a seamless and innovative way to trade, invest, and engage with the Starter launchpad ecosystem. Whether you’re trading on Uniswap or collecting NFTs on OpenSea to be a part of amazing future launches on Base, BUIDL 404 offers a unique, rewarding and fun experience reflective of Base culture.

Join us in this exciting journey as we continue to push the boundaries of what’s possible with BUIDL, Starter and building on Base. Stay tuned for more updates as we gear up for launch, 404 style!

For more information, visit our website and read our whitepaper below.

Starter Links

Website: https://starter.xyz
Telegram: https://t.me/starterlabshq
Twitter: https://twitter.com/starterlabshq
Docs: https://docs.starter.xyz