Main Problem of ERC404

The main problem with ERC404 is actually the fact that if you execute a normal ERC20 transfer, your unique ID is irreversibly burned.

Think of owning the token with ID = 1. As soon as you do a normal ERC20 transfer, adding lp, whatsoever, the ID 1 is permanently burned and the recipient will just get the next currentID minted.

If you see it like that, the whole idea of having valuable NFTs will NOT work.

Imagine tokenizing a house to ID = 1 but then "burning" your house due to a normal ERC20 transfer