# Why use ERC-404？ ## Overview ERC404 is an open, mixed ERC-20 and ERC-721 implementation designed to provide native fractionalization while supporting seamless integration with existing protocols. By using the ERC404 protocol, the liquidity of game assets can be improved and the playability of Web3 games can be achieved. ## How it Work It’s important to understand the underlying philosophy of ERC404 and the tradeoffs made to ensure smooth integration with protocols that are typically unaware of ERC721 functionality. Each whole token is effectively tied to a typical ID, but is otherwise able to be traded or transferred fractionally. All ERC721 interface functions respect typical operation whereby users are able to transfer distinct token id’s without friction. As this native fractional balance is transferred, however, whole tokens leave the users account, drawn from a queue when ownership of whole tokens changes. For example, when a user with a balance of 2 tokens transfers a fractional representation of 0.6, their most recently received token would be removed, and their balance would be 1.4. Reference：Pandora --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://metapokerlab.gitbook.io/metapoker/get-started/why-use-erc-404.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.