Protocol
Introduction
Fraktal is a community first platform, meaning that the protocol is owned by the community and all fees and value flow remain within the ecosystem.
The Fraktal Protocol is designed for fractionalizing NFTs and is owned by its users via the Fraktal DAO. All fees from protocol usage are distributed to users who stake FRAK (the Fraktal DAO token) and actively participate in governance and ecosystem growth.
Mission
Our Mission is to empower artists to be in full control of their work, while having full creative freedom and an ownership stake in the platform which hosts their creations.
Principles
Inclusiveness: Millions of users are sitting on the sidelines during the NFT revolution due to the financial barrier of entry for legitimate collections. This goes against the ethos of the greater crypto ecosystem and we want to change that so anyone can participate.
Utility Layer for NFTs: NFTs do an amazing job of providing provenance for digital creations; however, they currently do not have much use outside of speculation. The Fraktal Protocol enables a whole new range of use cases from automatic, on-chain royalty distribution, to NFT AMMs, secure on-chain pricing, and usage in DeFi.
Functions
Minting Fractional NFTs
Mint a new NFT in 10,000 erc-1155 units (Fraktions) with 18 decimals (fei units bc erc-1155 does not support decimals). Making the total supply: 10,000*10^18
Fractionalizing Existing NFTs
Take any erc-1155 or erc-721 token and fractionalise it.
Fixed-Price Listings
Sell Fraktions for a set price in ETH. i.e 1,000 Fraktions (10% of NFT) for 10 ETH. Users can purchase a minimum of 1 Fraktion or a maximum of the full amount for sale.
Uncapped Auction Listings
Instead of having a single winner, Fraktal Auctions work differently. Instead, everyone who participated receives a share of the NFT proportionate to their contribution/total contribution. i.e 80% of an NFT is listed for auction. Alice contributes 1 ETH and 10 ETH was contributed total. Alice receives 800 Fraktions (8%) of the NFT ((1 ETH / 10 ETH) * 8,000 Fraktions). Sellers can set reserve prices. Each auction lasts 10 days, if after 10 days the reserve price is not met, nothing exchanges hands and users can withdraw their ETH/NFT.
Royalty Distribution
Anyone can deposit revenue to a specific NFT which is then automatically distributed based on percent ownership. i.e 1 ETH deposited for a licensing usage fee and Bob owns 10% of the NFT. He receives 0.1 ETH to his wallet.
Buy-Out
If a user owns 100% of Fraktions, they can burn the Fraktions to withdraw the native NFT. Alternatively, any user can offer an amount of ETH to buy-out the native NFT. Fraktion Holders vote to accept or reject the offer and once 80% quorum (double check this) is reached the offer is executed and Fraktion Holders can burn their Fraktions in exchange for their share of the ETH.
Handling Airdrops to Fractionalized NFTs
Fraktal handles drops in a simple and secure way so you never lose out on an NFT airdrop.
When you fractionalize an NFT, you are transferring the native NFT into an escrow smart contract where it is locked and 10,000 fractionalized units (Fraktions) are minted and distributed to your wallet where they can then be sold on the marketplace.
With NFT airdrops this poses an issue because the native NFT is no longer in the user’s wallet. Fraktal has designed a simple solution to handle these NFT drops. The airdropped NFTs will also sit in the escrow contract and be controlled by the Fraktion owners. So if you own 100% or conduct a buy-out, you will receive both the native NFT and the airdropped NFT(s).
While this solution, covers a majority of airdrop scenarios, there are always exceptions such as highly complex or non-standard airdrops. We want to ensure that no NFT drops are ever lost; therefore, we have implemented a safety mechanism where the Fraktal DAO can upgrade the smart contracts to incorporate the required functionality for successfully managing an edge-case airdrop. This solution also allows for the smart contracts to be updated to more streamlined and novel claiming models; as well as, stay up to date with emerging technologies that could come to market for new types of airdrops or any type of NFT utility.
Integrations
Fees from all integrations are rewarded to Stakers of FRAK.
Fraktal Marketplace
Launching in Spring 2022, the Fraktal Marketplace brings all core functionalities of the Fraktal Protcol to life on Ethereum.
In the mean time, check out it out on Rinkeby Testnet!
Fraktal AMM (in-development)
An NFT specific AMM which enables pools to be created by pairing any erc1155 tokens (Fraktions) with ERC-20 tokens. This creates guaranteed, instant liquidity when trading NFTs and a verifiable and secure source of on-chain pricing which enables NFTs to easily be used in major DeFi protocols.
Current NFT trading resembles the early days of native crypto trading where it was largely concentrated on centralised exchanges. While most NFT exchanges (marketplaces) operate in a non-custodial manner (compared to centralised exchanges which hold users’ private keys), the trading experience is reminiscent of the first DEX’s such as Etherdelta/Forkdelta where orders must be listed and sit idle until a buyer is found. Fraktal AMM brings NFT trading to modern times😉
FrakFest (in-development)
Enabling users to easily pool together ETH to purchase NFTs on major platforms including superrare, niftygateway, looksrare and opensea.
It takes a fresh approach where the NFT itself is fractionalised and distributed to users instead of ERC-20 tokens being issued to represent the ownership of a native NFT. By not abstracting away ownership to an erc-20 representation of an NFT, users will continue to earn royalties and licensing fees directly to their wallets.
This extends the Fraktal Protocol beyond already fractionalised NFTs and enables it to penetrate major NFT platforms and directly purchase native NFTs as a community.
Additional Use Cases
While current initial integrations focus on Artwork, Fraktal Protocol can be used for any revenue generating asset which has multiple owners. For example: Music, Real Estate, Corporate & Government Bonds, Sharing Economy Assets, etc. NFTs are eating the world and the sky is the limit on integrations of Fraktal Protocol.
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