What is Fracton Protocol?

Fracton Protocol is a fractionalization trading platform focused on blue-chip NFTs. It supports faster price discovery and fairer equity distribution by letting users purchase, hold, and trade NFT fractions through ERC-20 and ERC-1155 token standards.

What is NFT Fractionalization?

NFT fractionalization means breaking a single NFT into multiple parts, so several participants can share partial ownership of the same NFT. One way to picture it is treating the NFT like a cake that gets cut so many people can enjoy it.

How does Fracton work?

After joining Fracton Protocol, you can participate in the open fundraising, which serves as the first phase of the fractional process for the chosen NFT. Once you receive the People’s NFTs (the ERC-1155 fractions), you can exchange them for smaller ownership units - the $FFTs (ERC-20 tokens) - on a 1:1000 basis.

When the fundraising succeeds, Fracton Protocol obtains the targeted NFT and places it in the treasury. At that point, holders of the fractions can redeem NFTs immediately, as long as they have enough People’s NFTs.

When the fundraising fails, Fracton uses the collected funds to buy back the $FFT tokens that were issued in that round, helping keep the exchange rate consistent.

In parallel, fraction holders can trade $FFTs on DEXs and cooperative CEXs, looking for arbitrage opportunities.