In recent times, the protocol frenzy led by ERC314 is gradually spreading to various chains. This article will introduce the design principles and development process of the 314 protocol, as well as compile the relevant tokens under this concept.
Table of Contents:
1. The Origin of the 314 Protocol: A New Protocol Born from a Social Experiment
2. The Hottest 314 Tokens at Present
– X314: Approximately $3.8
– LONG-314: Approximately $0.25
– BNB314: Approximately $0.09
– Y314: Approximately $0.04
– BTC314: Approximately $0.04
– DAPJ: $0.000048
3. 314 Protocol: Technological Innovation or Fleeting Phenomenon?
4. Conclusion
Driven by ERC-314, the 314 protocol frenzy is gradually spreading to various chains. The previous protocol standard that attracted so much attention may still be the ERC-404 protocol led by Pandora. Going back further, the recent hype even reminded many people of the previous NFT frenzy led by ERC-721.
X314, which is on the BSC chain, has achieved a thousand-fold increase in just two weeks since its launch on March 27th (starting price of $0.00349 and current price of approximately $4.2, with a peak of over $5.3). Various 314 protocol tokens with Meme as their code name on the Ave.ai platform have attracted the attention of many traders with an increase of over 30%.
Given the hot performance of the 314 protocol, Odaily will lead everyone to learn about this new protocol standard that claims to “eliminate the need for intermediaries like DEX”.
Note: Currently, the 314 protocol is only a commonly used term, referring to the contract standard used for tokens that can be bought and sold through contract transfers. It does not have official endorsement from any organization. Odaily reminds users that new projects have large fluctuations in the market and high investment risks. Please pay attention to asset security and choose investment targets carefully.
The Origin of the 314 Protocol: A New Protocol Born from a Social Experiment
So, where did the 314 protocol originate? To talk about this, we need to go back about three weeks, to a Wednesday.
On the evening of March 20, 2024, the ERC314 protocol token SIMP was launched. Prior to this, the project raised 20 ETH, with a total token supply of 1 million, distributed according to the ratio of 45% for LP, 45% for seed presale, and 10% for multi-signature CEX wallet.
The innovation of this project lies in the fact that users can directly transfer ETH to its contract to complete token purchases and transfer tokens to its contract for selling, with gas costs much lower than DEX swap transactions. The project’s official whitepaper provides a detailed explanation and introduction of the ERC314 protocol and mentions that any project can deploy ERC314 protocol tokens.
Afterwards, SIMP skyrocketed from its low point to a price of over $50 in just a few hours.
On March 21, the official account @Simplify_ERC314 of the ERC314 protocol emphasized in a post on X platform that this project is a social experiment. Subsequently, feedback from the community members indicated that there were issues with the contract formula of the protocol and the transfer of LP owner permissions was not truly carried out. Many people experienced slippage attacks during the buying and selling process, resulting in increased transaction losses. Despite professional smart contract engineers explaining the contract formula xy=k, the SIMP token fell to around $6 in less than a day, a decrease of nearly 90% from its peak, and even approached zero over time, with a price drop to around $0.08. As of the time of writing, influenced by the sentiment of the 314 protocol market, the SIMP token has risen to around $0.5.
The innovative ERC314 protocol, which was expected to eliminate intermediaries like DEX, reduce transaction costs, and to some extent prevent MEV attacks, came to an abrupt end. However, the new 314 protocol inspired and led by it was already on the way:
On March 22, LONG314 token, deployed on the BSC chain, was launched, allowing users to directly interact with the contract address by transferring BNB to realize token trading.
On March 26, the official announcement of the project stated that in order to optimize the shortcomings of ERC314 and LONG314, they plan to upgrade the protocol with expansion packages. Sales cooldown mechanism and LP burning mechanism will be added in the future to avoid bot attacks and promote token price increase.
On March 27, X314 protocol token, deployed on the BSC chain, was launched.
On March 29, X314 started a staking lottery activity, and the contract was upgraded to 60s transaction cooldown, 24-hour automatic burning of 6% LP, and daily destruction of over 1 million X314 tokens.
On April 1, the official BSCNews account released a sponsored tweet to promote the X314 project.
On April 2, the price of X314 token skyrocketed, attracting attention to on-chain data.
On April 6, the Ave.ai platform launched the X314 section and added X314 community promotion in the banner position on the homepage.
On April 7, the price of X314 token broke through $1.
On April 8, the price of X314 token continued to rise, reaching over $5.3 at one point. As of the time of writing, the X314 price has fallen back to around $3.8.
Due to the rise of the X314 protocol and tokens, the trading volume of many projects in the X314 section of the Ave.ai platform has increased significantly, and buying and selling activities are very active.
The Hottest 314 Tokens at Present
The following are the currently active and relatively high market value and liquidity 314 protocol-related token projects, with data mainly sourced from Ave.ai.
X314: Approximately $3.8
Total token supply: 21 million;
Contract permissions: Temporarily not relinquished (official explanation is that the contract is still being continuously updated and needs to be repaired and optimized for issues);
Circulating market value: Approximately $33 million;
Total LP liquidity: Approximately $1.8 million.
As the leading token in the X314 section, X314 can be considered the “culmination” of this protocol:
– It inherits and innovates to a certain extent from ERC314 and LONG314.
– LongSwap platform provides smooth swap trading experience.
– It has innovative sales cooldown mechanism and LP burning mechanism.
– It has a 90-day staking incentive activity.
– It has community user incentive lottery activities, etc.
Thanks to its recent market performance and operational activities, the X314 Telegram community has gathered over 13,000 members, and community communication is relatively active. It is worth mentioning that the X314 official account has attracted the attention of CZ, but it is not certain whether the account was purchased.
LONG-314: Approximately $0.25
Total token supply: 21 million;
Circulating market value: Approximately $6.18 million;
Total LP liquidity: Approximately $360,000.
LONG314 is a token issued based on ERC314 and is issued by the X314 project. The official X314 account has previously released relevant tweets, and the token is linked to the 314 protocol swap platform LongSwap.
BNB314: Approximately $0.09
Total token supply: 20.23 million;
Circulating market value: Approximately $2.08 million;
Total LP liquidity: Approximately $250,000.
BNB314 was launched on April 6. The project claims to be initiated jointly by BNB whales for community promotion. It is consistent with X314 in terms of trading operations, transaction cooldown mechanism, and prevention of slippage. However, the LP deflation rate is 12% per day.
Y314: Approximately $0.04
Total token supply: 20.4 million;
Circulating market value: Approximately $900,000;
Total LP liquidity: Approximately $130,000.
Y314 was launched on April 6, and its main feature is being the “first 314 protocol chromosome concept coin”. It can be seen that this is a project that purely rides on the popularity of X314. Please pay attention to the risks.
BTC314: Approximately $0.04
Total token supply: 17.8 million;
Circulating market value: Approximately $720,000;
Total LP liquidity: Approximately $130,000.
BTC314 was launched on April 5. Similar to other 314 protocol tokens, the only difference is that the automatic LP burning rate is only 2% in 24 hours.
DAPJ: $0.000048
Total token supply: 6.6 billion;
Circulating market value: Approximately $320,000;
Total LP liquidity: Approximately $90,000.
DAPJ was launched on April 7. Unlike the above 314 protocol tokens, it was issued on the Base chain and focuses on the Meme concept.
314 Protocol: Technological Innovation or Fleeting Phenomenon?
Previously, when SIMP first appeared, the ERC314 protocol sparked a heated discussion. Here are some selected excerpts:
As early as March 19, the EV Terminal platform posted a detailed explanation of ERC314 and SIMP on X platform, stating that “the ERC314 standard will change the way tokens are purchased and effectively reduce gas fees on Ethereum” In a recent announcement, EV Terminal also announced that SageERC314 has acquired the previous SIMP issuance project Simplify and will integrate SIMP with SAGE.
When SIMP first appeared, crypto KOL @0xSunNFT believed that “the core concept of ERC314 is to optimize token transaction gas, completing buying and selling with just one transfer” and “the limitation of only one transaction per block per address prevents sandwich attacks.” It was considered to be innovative and “a project that can catch people’s attention.”
AC Capital founder and Open_Rug manager CryptoV regarded ERC314 as “the latest progress in Ponzi on Token” and directly realized “Token as an L2” and “Uniswap on Token”, replacing the functionalities of L2 and DEX to some extent. It achieved something that “Facetswap wanted to do but failed to accomplish” and was even considered far superior to “Pandora that denied NFTX” (referring to the project that introduced the concept of ERC404).
Crypto researcher Haotian made a simple retrospective summary of SIMP and the “failure” of the ERC314 protocol. He believed that, firstly, “ERC-314, like ERC20 and other token standards, can be considered a new standard, but its innovation has been ‘overhyped’.” Secondly, “ERC314 uses a ‘black box’ pricing mechanism, which reduces the slippage and high gas fee issues of real-time swap calculations through this predefined and centralized manner. The downside is that the ‘black box’ logic setting within this contract requires trust from users, and whether the contract issuer has malicious intentions is a critical issue.” Lastly, “ERC314 made some ‘minor adjustments’ to the commonly used transaction normalization, adding a ‘pre-processing’ or ‘black box’ operational logic to the pricing mechanism and ‘buying and selling’ of tokens. I am more inclined to see this as a form of intent-based transaction normalization, which is particularly suitable for the circulation of some small meme coins through private sales. Due to the involvement of relatively complex contract logic and possible centralized trust issues, it is difficult for it to become the mainstream circulation method for large-scale assets.”
Overall, Haotian believes that ERC314 is a kind of niche micro-innovation that is more suitable for the scenario of “niche speculation of Meme” and is difficult to be accepted by the mainstream market.
The recent frenzy of the 314 protocol led by X314 is viewed by more people as a short-term speculative target. Most people mention this project and similar projects with its advantages such as “no transaction fees, relatively low market value, CZ’s attention, backing from the platform, and staking”. It has a certain aura of mass promotion, so the future market performance of the 314 section represented by X314 still has a high level of uncertainty.
Conclusion
In summary, X314 has made certain innovations based on ERC314. The transaction cooldown mechanism and LP burning mechanism have also to some extent alleviated the intensity of on-chain PVP, thus avoiding the “pitfall” experienced by SIMP in the past. On the BSC chain, a new branch of the ecosystem has sprouted. However, due to the extremely strong liquidity, the frictional costs of buying and selling transactions have been minimized, making it difficult to avoid price fluctuations and market value fluctuations in the short term.
In addition, the control of contract permissions by the project team is also a potential hidden danger for projects of this type. Therefore, participating in such projects carries high risks, and the future development and token trends largely depend on the vision and operations of the project teams.
Therefore, it is difficult for the 314 protocol to become as widely used as standard protocols like ERC721 in the short term. However, we have reason to believe that mechanisms that accelerate the liquidity and circulation efficiency of funds and enhance decentralized token trading will continue to develop in more chain ecosystems, forming a certain complement to DEX and other trading channels in certain races and fields.