What is DN-404?

A Hybrid Standard for Tokens and NFTs

This page explains the DN-404 standard adopted by $villain in a beginner-friendly way.

1. The "Divisible NFT" Concept

On Ethereum, fungible tokens (ERC-20) and NFTs (ERC-721) have traditionally been built as separate standards, with no direct interaction between the two.

DN-404 is a hybrid standard that combines them. Its name comes from "Divisible NFT" — by representing NFTs on a token base, it was designed to solve liquidity, one of the biggest challenges in the NFT market.

In $villain, the governance token $VLN (ERC-20) and the digital collection VLNS (ERC-721) operate in sync through this standard.

2. Mechanism: 1,000 $VLN = 1 NFT

For every 1,000 $VLN you hold, one VLNS NFT is automatically minted to your wallet.

• 1,000 $VLN = 1 NFT

• 10,000 $VLN = 10 NFTs

Conversely, when your balance falls below a multiple of 1,000, an NFT is automatically burned. Because the number of NFTs issued is always directly linked to the token supply, the stability of the entire ecosystem is maintained.

3. Benefits for Users

1. An NFT You Can Trade Anytime

• Ordinary NFTs cannot be sold until a buyer is found. With DN-404, the NFT's value is unified with the $VLN token, so it can be traded on DEXs at any time.

2. Two Markets to Trade In

• Trade as NFTs on NFT marketplaces, or as tokens on DEX/CEX — both work.

3. Fractional Ownership from Small Amounts

• Holding less than 1,000 $VLN is equivalent to owning a fraction of an NFT. You can participate in the ecosystem as a token holder without the funds for a full NFT.

4. Backed Value

• Each NFT always corresponds to the value of 1,000 $VLN.

4. Important Things to Know

Your NFT and 1,000 $VLN are not two separate assets — they are one and the same asset. Because of this unique mechanism, please keep the following in mind.

1. Selling an NFT also reduces your $VLN

• When you sell or transfer one NFT, the corresponding 1,000 $VLN moves with it.

2. Sending $VLN may burn one of your NFTs

• Sending fractional amounts of $VLN or depositing into a DEX may cause one of your NFTs to be burned. A burned NFT cannot be recovered as the same one. If you want to keep a specific NFT, transfer it as an NFT.

3. You cannot choose your NFT's ID

• Whether minting or receiving, the ID you get is determined by the contract's internal order.

4. $VLN sent to exchanges or DEXs does not become NFTs

• No NFTs are minted at exchange addresses. NFTs are minted when you withdraw to your own wallet (the gas for this is paid by the withdrawing side).

5. Gas fees can be higher than for ordinary tokens

• Because NFTs are minted, burned, or transferred along with $VLN transfers, gas can be higher than a regular ERC-20 transfer. Large amounts may need to be received in multiple transactions.

5. FAQ

Q. What if I hold less than 1,000 $VLN?

No NFT is minted, but your $VLN can still be held and traded as tokens. Once your balance reaches 1,000, an NFT is automatically minted.

Q. What happens when I sell an NFT?

The NFT and $VLN are treated as one — when you transfer an NFT, that same NFT (same ID) moves to the recipient, together with the corresponding 1,000 $VLN.

Q. Do I also receive $VLN when I buy an NFT on a marketplace?

Yes. When you purchase one NFT, you hold that NFT together with 1,000 $VLN, which appears in your wallet as $VLN. Conversely, sending $VLN out of that wallet may burn the NFT you bought (see the notes above).

Q. Where can I get them?

You can acquire them by purchasing NFTs on NFT marketplaces, or by purchasing $VLN on DEX/CEX. They may also be distributed via airdrops.

During the official mint period, the price is 0.012 ETH per NFT, with a limit of 100 NFTs per transaction.

6. Why Ethereum?

While other chains offer lower gas fees and faster transactions, $villain deliberately chose Ethereum. Its unshakable value, stability, and industry-wide trust make it the ideal foundation for a long-term ecosystem.

7. Contract Information

DN-404 consists of two contracts: a base token (ERC-20) and a mirror NFT (ERC-721). This is why $villain has two contract addresses (both verified on Etherscan).

• $VLN (Token)

0xF719c431f66BF523B27dBF4087CeE0E1d2604F32

• VLNS (NFT)

0x357b9D3a18f7516f8F3c36991Af3140840f0F626

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