The Frac ecosystem, comprising of Diamond Alpha and the F-NFT Marketplace/DEX, makes use of fractionalization technology to allow the common man on the street to gain access to high-margin investment opportunities through participation in the upstream portions of selected supply chains and investing into bits and pieces of high value assets in the luxury and collectors’ market.
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Problems that Frac is solving
Frac’s short description :
Frac aims to harness the power of blockchain to tokenize the world to create a fairer and more sustainable financial system. Frac wants to be the builder of infrastructure and products that enables the tokenization and fractionalization of all high-value assets, beginning with precious stones and commodities.
Currently, Frac has over forty talents operating in four countries with relevant expertise, and our advisory and partners have years of experience connecting to pertinent operators and investors in regard to the auctioning, alternative investments, financial engineering and Web3.0 industries.
Success to us means repeatability via stakeholders’ centricity, scalability via networking and community effect and profitability via the proxy of successful and proven models.
Problems that the Frac ecosystem is solving:
Problem 1 - Precious commodities are common assets owned mainly by high net-worth individuals. They come in the form of collectibles, precious stones, wine/whiskies and more. These high-margin investment opportunities are often inaccessible to the common man due to the high barrier of entry, resulting in insufficient liquidity for high value assets.
Solution to problem 1: Using fractionalization technology (FracTech), we allow the common man on the street to gain access to high value assets which can appreciate over time faster than blue chip stocks while providing a stable option for more conservative investors. Traders can buy F-NFTs of physical and digital assets and they do not need to have the capital to purchase the entire asset.
Problem 2 - Frauds and scams revolving around fake goods are evolving in complexity and the amount of losses is in the millions each year. Most retail consumers lack access to high quality curation services.
Solution to problem 2: Frac undertakes the responsibility of hiring the right valuers, curators, to curate each and every asset before it proceeds for an Initial Asset Offering . This cuts away the problem of lower income groups not being able to access high quality curation services.
Problem 3 - Creators of digital assets such as music and virtual art are unable to enter the Web3.0 market due to the inability to mint a NFT, or lack of general Web3.0 knowledge.
Solution to problem 3: The Frac F-NFT Marketplace captures Web2.0 artists and creators because it allows them to create a Fractor account using Facebook or Google login and more importantly, it enables them to select digital assets which are NOT NFTs yet and request an IAO (Initial Asset Offering) This process of requesting an IAO will ask them whether their digital assets are NFTs, and if not, the system automatically converts the digital asset into a NFT for them and then fractionalizes it into fractional NFTs for trading.
Problem 4 - Creators often face intermediaries such as brokers or auction houses when it comes to releasing a new music album or new piece of digital art, because they are unable to connect to the ultra high networth circle themselves. These intermediaries take away a significant portion of the proceeds collected from sales.
Solution to problem 4: Creators can utilize an IAO to directly offer their intellectual property for sale and through the power of fractionalization, they are no longer at the mercy of brokers or connectors because now they are able to sell their assets in smaller pieces to a wider audience instead of centralizing the sale on a few selected individuals which only the brokers have access to.
Problem 5 - Influencers face the problem of generating thousands of NFTs just to adopt NFTs in the creation of a Fan Club or to reward their followers. They waste time, effort and money creating so many pieces of digital art.
Solution to problem 5: Most influencers mint thousands of NFTs just to initiate an INO (Initial NFT Offering). This is wasteful and consumes a lot of their energy, time and money just to generate the NFTs. Frac’s F-NFT marketplace offers a simpler solution by allowing influencers to take a single NFT and then fractionalize them into F-NFTs to be sold directly to a wider audience. The whole process is streamlined.
Problem 6 - Due to lack of connections and resources, the lower income groups are unable to participate in selected supply chains and take advantage of the explosive increase in value as assets travel down the supply chain.
Solution to problem 6: One of Frac’s ecosystem products, the Diamond Alpha Asset-backed Yield Program, is the solution to this problem. Diamond Alpha consists of Paths One and Two, where the former allows users to participate and benefit from the value differentiation gained from the growing process of Lab-Grown Diamonds (LGD) from seed to rough stage, while the latter allows users to partake in and yield from the diamond rough to the polished stage.
Problem 7 - Influencers are unable to monetize their popularity and social following directly via financial engineering and often depend on selling side products to generate revenue.
Solution to problem 7: Frac solves this problem through our F-NFT Marketplace. By introducing the concept of Fanclub NFTs but fractionalized into fractional NFTs (F-NFTs), the F-NFT Marketplace essentially creates a market where fans of celebrities and influencers can participate in the trading of their favourite idol’s fractional NFT. This gives influencers the opportunity to interact with their fans through a financial mechanism instead of promoting products which their fans may not use. Celebrities are also held accountable for their actions as the price of their fanclub’s fractional NFT is directly impacted by the size of their follower base.
Problem 8 - There is no effective medium of exchange which allows the trading of digital assets with physical assets and no effective financial rendition of what is known as the Metaverse.
Solution to problem 8: While everyone speaks of “phygital”, there is no platform out there yet which is equipped to really facilitate the trading of digital assets against physical assets and vice versa. Through Frac’s F-NFT marketplace, traders can trade fractional NFTs of physical assets for fractional NFTs of digital assets and take barter-trading to the next level. This also allows Web2.0 holders of prized physical assets to “wet their feet” in the Metaverse.
Why does Frac intend to become an appchain rather than just deploy smart contracts on L1?
Hi there louis!
The first reason we want to be come an Appchain is to take advantage of the high transaction throughput via Octopus Network via the NEAR protocol. It offers high scalability, and fast finality, this is something which is needed since we are running a DEX.
Another important reason is the ability to customize our application. As the the F-NFT DEX welcomes more users in the future, we want the ability to fit our smart contracts, governance structure to the ever changing demand of the community, hence the ability to customize our application is much needed as we would like to stay competitive.
Thank you for the clarification. I have a few additional questions:
Hi Louis, Japhet here, COO for Frac - anyways if we are voted in as an Appchain, we can get the protocol ready as soon as Mid March 2023
Question 2 I will leave it to Nicholas, our Tokenomics planner to answer.
But Louis, just out of curiosity, is there an “expected” USD value that validators on the Appchain expect to earn per year?
Perhaps it might be easier for us to first understand the expectations or the prevailing trends on the Validator side
The estimation can go like this: The FDV of the last fundraising round is ***. We expect the FDV will be *** when the mainnet launch. According to the token allocation plan, ***% of tokens will be distributed to appchain validators in *** years. Based on all these assumptions, it will be a *** USD/year revenue stream for the Octopus community by running the appchain.
Is that make sense to you?
Hi Louis, thanks for the reply. We are currently in the midst of finalizing our tokenomics. Is there available data on past projects and the amount they offered as incentives for validators that we can study?
Tokenomics is finished?
Hey there Franbuzz!
Tokenomics is drafted but we are finalizing it. We will release it as soon as possible.
Meanwhile, we may do a testnet launch on Octopus Network first!
nice, That’s very interesting. I hope to experience your application soon on the testnet.
Yeap! We will be sure to keep the Octopus Network community informed!