# What is Rebase hiNFT?

Rebase hiNFT is a new asset issuance paradigm we believe blends the benefits both of Memecoin and NFTs. Below, we provide an illustration of how any culture/meme can be traded and the user journey of Rebase hiNFTs:

<figure><img src="/files/AoFg5JmBEf2mXshsM12S" alt=""><figcaption></figcaption></figure>

In the traditional financial world, rebasing is often associated with the adjustment of a token’s supply to meet a specific target. In FractonX’s context, this rebasing mechanism is applied to NFTs, where early NFTs minted within a collection are designed to receive token airdrops from subsequent NFT collections launched under the platform.

Now, with rebase added to the proven success of Fractionalized hiNFTs, we are able to create a new NFT issuance paradigm:

Enter X Incubation, a solution tailored to these very challenges.

1. Efficient Market Discovery: Users will first trade the asset in ERC20 tokens, which are then redeemed at random into artwork, we cater to demand more effectively.
2. Widening Accessibility: The ERC20 format beckons a larger audience, eliminating the NFT accessibility issue.
3. Flywheel Effect: Each new project incubated by FractonX will continue to receive future airdrops

The Advantages of Rebase NFTs:

1. **Loyalty and Community Building:** By rewarding early adopters with airdrops from subsequent collections, there’s an inherent incentive to stick around and remain engaged. This not only builds loyalty but also strengthens the community around the NFT collection.
2. **Encouraging Collection Growth:** The promise of future rewards instigates more artists and creators to launch their NFTs under the FractonX umbrella. This has a cyclical effect — more launches mean more rewards, and more rewards attract more launches.
3. **Shifting the NFT Issuance Paradigm:** Traditionally, NFTs operate in silos — one collection remains distinct from another. But with FractonX’s rebase mechanism, collections are intertwined, creating a symbiotic relationship where growth in one collection can benefit another.

Innovative solutions like FractonX’s Rebase hiNFTs and X Incubation are paving the way for a more inclusive and dynamic ecosystem. By addressing core issues such as token standardization, audience transition, and community building, these solutions are not only making it easier for artists and creators to launch and trade NFTs but also incentivizing early adopters and fostering a sense of community.


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