Comment on page
A challenge associated with the existing Ethscription tokens is that their availability is limited to batches of 1000. This significantly reduces market liquidity and restricts individuals with lower capital from participating in the ecosystem. To address this issue, Etch proposes the adoption of the DERC-20 protocol, which enables token subdivision. It's important to clarify that DERC-20 does not constitute a new Ethscription protocol; rather, it serves as a wrapping solution like WBTC or WETH.
In a nutshell, the process involves wrapping the token within DERC-20. The wrapped token is then secured within an open-source smart contract. At any given point, the wrapped token can be converted back to the original token Ethscription, albeit only in increments of 1000 (to align with the standard 1000-batch trading in the current protocol). DERC-20 is compatible with all tokens issued under the ERC-20 and ESC-20 protocols, and can be extended to achieve division of inscriptions without any need for alterations.