A bridge between decentralized and centralized worlds, A fractionalization trading protocol for blue-chip NFTs.
Fracton ProtocolFracton Protocol Academy - Fundraising Through Fractionalization
Fracton Protocol ("Fracton") has many product design innovations to balance between being decentralized, having sufficient liquidity, and meeting all kinds of transaction needs. We recommend our users spend some time understanding our product to achieve a smoother user experience. In the coming week, we will publish more articles to introduce our product functions and their logic. For the convenience of expression, the narratives below will take BAYC as an example. Other NFT collections such ...
Fracton ProtocolFracton Protocol Academy - Blind Box and People’s BAYC
The previous article introduced some parts of the fractionalization fundraising of Fracton Protocol. This article will explain further the fundraising process by introducing two critical elements of Fracton - People’s BAYC and Blind Box. For ease of expression, we will use BAYC as our target NFT to be fractionalized. The following rules will apply to other NFT collections, such as CryptoPunks, Sandbox, and Otherdeed. What is People’s BAYC？ Each People’s BAYC represents a 1/1000 ownership of a...
Fracton ProtocolFracton Protocol - Fractionalize all the blue-chip NFTs for everyone
Overview Non-fungible tokens have recently gained momentum in crypto markets, and half of the ETH gas burned due to NFT mintings and transactions. However, as their name suggests, NFTs are indeed non-fungible, non-divisible, and therefore illiquid. For instance, the average cost of buying a BAYC on the secondary market would be more than 80 ETH, and these well-established collections are restricted to crypto whales and the rich. Therefore, here we aim to solve the pain point of poor liquidity...
Fracton ProtocolFracton Protocol Academy - Fundraising Through Fractionalization
Fracton Protocol ("Fracton") has many product design innovations to balance between being decentralized, having sufficient liquidity, and meeting all kinds of transaction needs. We recommend our users spend some time understanding our product to achieve a smoother user experience. In the coming week, we will publish more articles to introduce our product functions and their logic. For the convenience of expression, the narratives below will take BAYC as an example. Other NFT collections such ...
Fracton ProtocolFracton Protocol Academy - Blind Box and People’s BAYC
The previous article introduced some parts of the fractionalization fundraising of Fracton Protocol. This article will explain further the fundraising process by introducing two critical elements of Fracton - People’s BAYC and Blind Box. For ease of expression, we will use BAYC as our target NFT to be fractionalized. The following rules will apply to other NFT collections, such as CryptoPunks, Sandbox, and Otherdeed. What is People’s BAYC？ Each People’s BAYC represents a 1/1000 ownership of a...
Fracton ProtocolFracton Protocol - Fractionalize all the blue-chip NFTs for everyone
Overview Non-fungible tokens have recently gained momentum in crypto markets, and half of the ETH gas burned due to NFT mintings and transactions. However, as their name suggests, NFTs are indeed non-fungible, non-divisible, and therefore illiquid. For instance, the average cost of buying a BAYC on the secondary market would be more than 80 ETH, and these well-established collections are restricted to crypto whales and the rich. Therefore, here we aim to solve the pain point of poor liquidity...
A bridge between decentralized and centralized worlds, A fractionalization trading protocol for blue-chip NFTs.
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The first two chapters of Fracton Protocol Acadamy introduced the fundraising process through Blind Box and BAYC fractions (People’s BAYC), which can be considered 1/1000 of a BAYC. However, since the ERC-1155 token is still indivisible, the liquidity issue for Blind Box and People’s BAYC still exists despite their contribution toward making blue-chip NFTs accessible for everyone. The lack of liquidity increases the difficulty of asset valuation, reducing the effectiveness of price discoveries through the “invisible hands”. To solve this problem, Fracton has introduced hiBAYC, planning to launch hiBAYC trading pairs on Uniswap and other cooperative CEXs.
For ease of expression, we will use BAYC as our target NFT to be fractionalized. The following rules will apply to other NFT collections, such as CryptoPunks, Sandbox, and Otherdeed.
What is hiBAYC？
hiBAYC is the BAYC fraction token in the ERC-20 standard. During the fundraising period, users can swap their Blind Boxes for hiBAYC at 1:1000. They can also convert their People’s BAYC to hiBAYC at the same rate after opening the Blind Boxes. That is to say, every hiBAYC token represents 1 in a million shares of a BAYC in Fracton’s BAYC Vault.
How to get hiBAYC？
First, users can use the Meta-Swap function on Fracton’s official site to exchange their Blind Box or People’s BAYC for hiBAYC. In addition, taking into account the better liquidity, lower transaction costs, and smoother user experience of centralized exchanges compared to DEX, Fracton will also work with the top CEXs for certain fundraising rounds, with the CEXs acting as the agent to support the fundraising. Users can subscribe for hiBAYC on the centralized exchanges and trade on the hiBAYC trading pairs when launched.
Repurchase
You might be concern about the inflation caused by failed fundraising round. In such a case, the ratio between the total supply of hiBAYC and the number of BAYCs in the Vault will no longer remain 1,000,000:1. hiBAYC will depreciate in value.
Fracton has also considered this matter and designed a repurchase system to tackle the hiBAYC inflation problem caused by any failed fundraising round. Fracton will use the ETH raised from the failed round to buy back the accrued hiBAYC, with the repurchase price being the total ETH raised/(the number of Blind Box minted * 1000). Due to technical reasons, our v1 version cannot execute the repurchase automatically. The repurchase will be carried out by the core members of Fracton as a temporary solution. We will include a decentralized and automatic repurchase system in the upcoming v2 update.
Transaction Fees
For each on-chain transaction of hiBAYC, the contract will charge a 0.2% transaction fee. Due to limitations in the current development stage, our v1 version is unable to decentralize the use of the transaction fees. In the upcoming v2 version, the DAO governance proposal will utilize the transaction fees wisely. They will play a more critical role in the Fracton ecosystem, such as providing liquidity on Uniswap, rewarding early participants, or rewarding early fundraisers.
So far, we have covered the majority of the fundraising function of Fracton Protocol. Fracton created Blind Box and People’s BAYC - tokens in the ERC-1155 standard - to overcome the barriers to purchasing blue-chip NFTs for ordinary investors. To further tackle the issue of lack of liquidity and inefficient pricing, Fracton created hiBAYC - a token in the ERC-20 standard. Since we have introduced all the fractionalized elements in the Fracton system, in our next chapter, we will be explaining in detail Fracton’s multi-standard decentralized exchange pool - Meta-Swap. This is a crucial component of Fracton Protocol, stay tuned!
Next Chapter - Meta-Swap
Website:
Medium:
https://medium.com/@FractonProtocol
Discord:
https://discord.com/invite/GzV8cx8QyZ
Twitter:
The first two chapters of Fracton Protocol Acadamy introduced the fundraising process through Blind Box and BAYC fractions (People’s BAYC), which can be considered 1/1000 of a BAYC. However, since the ERC-1155 token is still indivisible, the liquidity issue for Blind Box and People’s BAYC still exists despite their contribution toward making blue-chip NFTs accessible for everyone. The lack of liquidity increases the difficulty of asset valuation, reducing the effectiveness of price discoveries through the “invisible hands”. To solve this problem, Fracton has introduced hiBAYC, planning to launch hiBAYC trading pairs on Uniswap and other cooperative CEXs.
For ease of expression, we will use BAYC as our target NFT to be fractionalized. The following rules will apply to other NFT collections, such as CryptoPunks, Sandbox, and Otherdeed.
What is hiBAYC？
hiBAYC is the BAYC fraction token in the ERC-20 standard. During the fundraising period, users can swap their Blind Boxes for hiBAYC at 1:1000. They can also convert their People’s BAYC to hiBAYC at the same rate after opening the Blind Boxes. That is to say, every hiBAYC token represents 1 in a million shares of a BAYC in Fracton’s BAYC Vault.
How to get hiBAYC？
First, users can use the Meta-Swap function on Fracton’s official site to exchange their Blind Box or People’s BAYC for hiBAYC. In addition, taking into account the better liquidity, lower transaction costs, and smoother user experience of centralized exchanges compared to DEX, Fracton will also work with the top CEXs for certain fundraising rounds, with the CEXs acting as the agent to support the fundraising. Users can subscribe for hiBAYC on the centralized exchanges and trade on the hiBAYC trading pairs when launched.
Repurchase
You might be concern about the inflation caused by failed fundraising round. In such a case, the ratio between the total supply of hiBAYC and the number of BAYCs in the Vault will no longer remain 1,000,000:1. hiBAYC will depreciate in value.
Fracton has also considered this matter and designed a repurchase system to tackle the hiBAYC inflation problem caused by any failed fundraising round. Fracton will use the ETH raised from the failed round to buy back the accrued hiBAYC, with the repurchase price being the total ETH raised/(the number of Blind Box minted * 1000). Due to technical reasons, our v1 version cannot execute the repurchase automatically. The repurchase will be carried out by the core members of Fracton as a temporary solution. We will include a decentralized and automatic repurchase system in the upcoming v2 update.
Transaction Fees
For each on-chain transaction of hiBAYC, the contract will charge a 0.2% transaction fee. Due to limitations in the current development stage, our v1 version is unable to decentralize the use of the transaction fees. In the upcoming v2 version, the DAO governance proposal will utilize the transaction fees wisely. They will play a more critical role in the Fracton ecosystem, such as providing liquidity on Uniswap, rewarding early participants, or rewarding early fundraisers.
So far, we have covered the majority of the fundraising function of Fracton Protocol. Fracton created Blind Box and People’s BAYC - tokens in the ERC-1155 standard - to overcome the barriers to purchasing blue-chip NFTs for ordinary investors. To further tackle the issue of lack of liquidity and inefficient pricing, Fracton created hiBAYC - a token in the ERC-20 standard. Since we have introduced all the fractionalized elements in the Fracton system, in our next chapter, we will be explaining in detail Fracton’s multi-standard decentralized exchange pool - Meta-Swap. This is a crucial component of Fracton Protocol, stay tuned!
Next Chapter - Meta-Swap
Website:
Medium:
https://medium.com/@FractonProtocol
Discord:
https://discord.com/invite/GzV8cx8QyZ
Twitter:
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