Fracton is dedicated to becoming the standard of NFT fractionalization, making the ownership of NFT to be as frictionless as possible. At the same time, continue innovating new use cases using Fraction’s fractionalized NFTs as the base layer.
NFT fractionalization refers to splitting one NFT into smaller pieces, thus allowing multiple people to gain partial ownership of the same NFT.
We select only the top and high-potential NFT collections to be fractionalized. When stepping into a more mature stage, we hope to support the fractionalization of any NFT collections, which will be entirely decentralized and permissionless.
Why should I trade Fracton’s hiNFT instead of the original NFT?
hiNFT makes owning and trading blue-chip NFTs extremely accessible and affordable. Purchasing of fractionalized BAYCs can be as little as $1 on Fracton protocol. Secondly, the redemption function allows users to arbitrage, as well as dollar cost averaging into a Blue-chip NFT at a potential discount.
Who owns the NFTs in Fracton’s meta swap pool?
Once NFTs are fractionalized as the hiNFT tokens, they are securely reserved in Fracton protocol’s vault act to back up the value of hiNFTs. Therefore, the NFTs are collectively owned by hiNFT holders. Only hiNFT holders who own 1,000,000 tokens + fees are able to redeem one random NFT back.
The process for redeeming an NFT is straightforward, consisting of just two steps. First, acquire 1,006,009 hiNFTs, as redeeming the underlying NFT requires 1,000,000 of the hiNFT tokens and a ~0.6% redemption fee. You can buy these tokens on Kucoin. Then, withdraw them to your ETH wallet. From there, complete the redemption process on-chain at fracton.cool. It's as simple as that!
Why is the price of hiNFTs so volatile?
Price fluctuations are higher for hiNFTs due to the nature of a more liquid product trading on CEX, especially during IEOs. It is important for traders to recognize that the price of hiNFTs should be close to the market price of its anchored NFT. If the price difference is too large, cautious trading is necessary.
Can I use Fracton protocol for fractionalizing NFTs on Solana or Polygon?
No. Currently, Fracton protocol only supports a selective series of high-end NFTs on Ethereum.
How can I check Fracton’s NFT reverses?
All of the NFT collectibles are saved in the smart contract of the meta-swap pool, You can always check the smart contract address here to check the NFT reserves.
What is Meta-Swap？
Meta-Swap is an innovative mechanism of Fracton, referring to One-Stop Swap for multiple standards tokens to break through the traditional exchange paradigm. Users can freely swap among ERC-20(hiBAYC), ERC1155(People’s BAYC), and ERC721(BAYC) at a constant ratio in Meta-Swap.
People's NFT is the middle layer in the fraction/redemption process, you can redeem them for a random BAYC from the Meta-Swap pool.
Why is the supply of hiNFT keep changing?
While each hiNFT token represents 1/1,000,000 of the original NFT, the supply varies depending on the trading activity of the hiNFT series. Therefore, like an ETF in the stock market, there is no direct relationship between supply and price. Naturally, the more people buy hiNFT, the higher supply, and vice versa.