Standards – ERC20 + zk-SNARK vs ERC 721 + metadata

The problem with the ERC20 standard is that it does not openly allow one to track the return. ERC20 is purely fungible. The return rate would need to be tracked internally via Synfy and possibly proofed onchain using a zk-SNARK.

Synfy suggests an option here where Synfy issues 2 tokens of differing standards. Each has its pros and cons.

ERC20 version – No floating return visible. Return is simply determined by when user submits their wallet for checking hold duration. The Benefit is - cheaper to mint on gas costs and probably cheaper to transfer within blockchain. Suitable for users who want to transfer USD cheaply around without much concern about the return rate. It still holds a return rate, which can be checked off chain via the hlayer API protocol.

ERC721 version – Mapped to a Token URI which has a floating return within the JSON metadata code. Has an issue date and current return. Comes out direct from the ERC721 contract. Benefit is return is immediately and openly checkable via the ERC721 Token URI. Data is checkable and verifiable e.g. issue date, current return. Suitable for users who want a more verifiable trackable return and willing to pay more gas for validation.