The problem ERC404Meme solves

ERC404Meme is an opinionated yet practical implementation of the ERC404 standard, aimed at adding substantial value and utility to memecoins on EVM chains (like Base) by enabling generative PFP NFT collections that are natively tied to them.

We've been developing the ERC404Meme standard in collaboration with Chainlink and Pandora Labs. Our goal is to position Base as the premier platform for next-generation memecoins.

Just as Solana boasts its unique offerings with OPOS("Only Possible On Solana,") it's time for Base to spotlight OPOB("Only Possible On Base.")

By advancing this standard, we aim to make the Base chain the most ideal chain for memecoins, drawing a broader retail audience and enhancing user engagement. This initiative will mark a significant milestone in developing hybrid memecoins and support Base's mission to become the most user-friendly, entertaining, and engaging blockchain, helping to onboard the next billion users.

Challenges we ran into

We recognized significant potential in the ERC404 standard to revolutionize the memecoin space by enabling memecoins to function like NFTs and vice versa. However, the original ERC404 implementation faced practical issues:

• In legacy ERC404, 1 token equaled 1 NFT, resulting in token prices reaching thousands of dollars, unlike typical memecoins which often have many leading zeros (<0.0001). We addressed this by allowing deployers to specify the number of tokens per NFT, such as 10,000 tokens equaling 1 NFT, thereby increasing supply to resemble that of common memecoins.
• In the original ERC404, users could regenerate traits by transferring tokens between wallets, making it easy to farm rare items. We eliminated trait regeneration upon transfer; instead, users must sell their NFT and repurchase it from a DEX.
• Previously, if a user sold and rebought fractional NFTs (e.g., 0.1 NFT), the traits would change, resulting in a completely different NFT. We corrected this by tracking the user's last fractional item, effectively preventing the exploitation of rare traits.
• Miners could influence trait randomization during minting. We introduced verifiable randomness using Chainlink VRF and Automation to solve this issue.
• The dynamic NFT generation and art based on DNA presented a challenge in creating the metadata for them. We decided to set up a dedicated server for this generation, using off-chain data to complement the contract data. We use IPFS to store the off-chain data, saving the hash in the contract, which allows for a unique reference to this information.

We believe our enhancements can provide a foundation for future memecoin and NFT projects, positioning Base as the home of next-gen memecoins that attract a billion users to the blockchain.