David Chen
The vault holds a solid basket of major technology stocks including Tesla, NVIDIA, and Amazon. This diversified backing provides a clear view of the underlying assets supporting the token value.
Questions about 401K
What is 401K?
401K is a decentralized protocol built around a fixed-supply ERC token called $401K that trades on Uniswap v4. A 3% fee on every trade is collected in ETH and used to purchase tokenized stocks held in an on-chain vault as backing for the token. Holders can burn their $401K tokens at any time to withdraw a proportional share of the vault's stock holdings in kind.
What stocks are held in the vault?
The protocol does not sell or take the $401K token itself; it only collects fees in ETH to buy stocks. The supported stock basket currently includes assets tied to companies such as Apple, NVIDIA, Microsoft, Tesla, Amazon, Meta, Alphabet, Oracle, Palantir, Coinbase, and others.
Do I need to stake or register to use the protocol?
Users do not need to stake, claim, or register to participate; holding is the whole position. Your claim on the vault is your share of supply, which is updated automatically by every trade and burn.
What happens to my tokens when I redeem them?
When you burn $401K, you receive your slice of every stock in the vault in kind, minus the 3% haircut that stays behind for everyone else. For example, burning a specific amount yields shares of AAPL, NVDA, TSLA, and the rest based on current vault holdings.
How does the floor rise for existing holders?
The 3% fee on every trade is charged on buys and sells, always in native ETH. This fee is used to buy tokenized stocks into the vault, ensuring that every trade and every burn raises the floor for everyone left.
How are stock prices determined in the vault?
The vault buys each supported stock in equal parts, and prices come from each asset's pool. The supported stocks include AAPL, AMD, AMZN, COIN, CRWV, GOOGL, INTC, META, MSFT, MU, NVDA, ORCL, PLTR, SNDK, SPCX, and TSLA.
Where does the trading happen?
The protocol operates on Uniswap v4, where people trade $401K through the 401K/ETH pool. There is a fixed supply of 1B, and no mint function exists to create new tokens.
What is the status of collected fees?
The protocol collects ETH awaiting conversion into the stock basket, referred to as 'Tax pending' on the website. This collected ETH is split across the supported basket to buy stocks.
How does the vault manage its holdings?
The vault holds tokenized stocks that are never distributed but are always claimable. The supply burned represents the amount redeemed and gone forever, which raises the floor for remaining holders.
What is the official website of 401K?
The official website of 401K is 401k.fi.
How is 401K rated on Trustburn?
On Trustburn, 401K has a rating of 4.4 out of 5 based on 5 reviews.
AI-generated from reviews on this page. Verify anything important with the company directly.
Clara Whitmore
The accessibility of the 401K protocol is notably high, requiring no staking, claiming, or registration processes to maintain a position. Holding the token constitutes the entire investment, with share updates happening automatically through on-chain trades and burns. The transparency is impressive, as protocol metrics and vault holdings are readable directly from the blockchain, allowing investors to verify the backing assets like Microsoft and Tesla without intermediaries. The ability to burn any amount of tokens at any time to receive a proportional slice of the stock basket, minus a three percent haircut, provides flexible exit strategies. The absence of an owner withdrawal function or mint capability further secures the integrity of the asset structure. This design ensures that every redemption raises the floor for remaining holders, creating a deflationary pressure that benefits long-term participants who prefer direct ownership of underlying equities rather than indirect exposure through traditional ETFs.
Arthur Pendelton
The 401K model presents a distinct approach compared to traditional index funds by utilizing a fixed supply mechanism where the token never mints additional shares. Each trade routes through Uniswap v4, and a three percent ETH fee accumulates to purchase tokenized stocks like AAPL and NVDA, which remain in the vault. While the concept of burning tokens to redeem actual stock holdings in kind is innovative, the reliance on ETH for fees adds a layer of complexity not found in standard brokerage accounts that might deter casual investors seeking simplicity.
Mara Jensen
The 3% fee on every trade is clear, though it remains unclear if that cost is baked into the current price or added separately at the moment of the transaction.
Elias Thorne
The ability to burn tokens and receive actual stocks in kind seems very clear. Since the vault holds the backing and trades route through Uniswap, the structure feels robust. It is good that there is no owner withdrawal risk.
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401K is a decentralized protocol built around a fixed-supply ERC token called $401K that trades on Uniswap v4. A 3% fee on every trade is collected in ETH and used to purchase tokenized stocks that are held in an on-chain vault as backing for the token. Holders can burn their $401K tokens at any time to withdraw a proportional share of the vault's stock holdings in kind. The protocol does not sell or take the $401K token itself, and the supported stock basket currently includes assets tied to companies such as Apple, NVIDIA, Microsoft, Tesla, Amazon, Meta, Alphabet, Oracle, Palantir, Coinbase, and others.
- Website
- 401k.fi
- Categories
- Financial services, Investment management