404 Lite Paper
  • Introduction
  • Key Features
  • NFT Fractionalization
  • $FOF token
  • ƒ-tokens
  • Core Protocol Design
  • ERC-404 Standard
  • Liquidity Pools
  • Exchange
  • NFT Marketplace
  • Launchpad
  • Guidelines for NFT Collections
  • Guidelines for NFT Holders of Non-Partnered Collections
  • Guidelines for Stakeholders
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Guidelines for NFT Holders of Non-Partnered Collections

If you are an NFT holder of a non-partnered collection and wish to fractionalize your NFT on the404.io platform, please follow these steps:

Step 1: Selection of NFT

  1. Connect Wallet: Connect your cryptocurrency wallet to the404.io platform.

  2. Choose NFT: From your wallet, select the NFT you want to fractionalize. Ensure that the NFT is compliant with the ERC-721 standard.

Step 2: Smart Contract Interaction

  1. Initiate Fractionalization: Navigate to the fractionalization section on the platform and initiate the process.

  2. Smart Contract Execution: The platform will provide a smart contract to handle the fractionalization. Approve the contract interaction to proceed.

  3. Deposit NFT: The selected NFT will be deposited into a secure vault. This ensures the NFT is safely stored during the fractionalization process.

Step 3: Token Minting and Distribution

  1. Minting of Fractional Tokens: The smart contract will mint an equivalent amount of ƒ-tokens (ERC-20) representing shares of the NFT.

  2. Token Distribution: The newly minted ƒ-tokens will be distributed to your wallet, representing your fractional ownership of the original NFT.

Step 4: Fractional Value Determination

  1. Assessment of NFT Value: The value of your NFT will be assessed to determine the number of ƒ-tokens to be minted. This ensures that the ƒ-tokens accurately represent the market value of the NFT.

  2. Fraction Allocation: Based on the assessed value, you will receive a fair and proportional amount of ƒ-tokens.

Step 5: Utilizing ƒ-tokens

  1. Liquidity Provision: You can add your ƒ-tokens to a liquidity pool on the platform, paired with the native $FOF token. This helps maintain liquidity and stability in the market.

  2. Trading: You can trade your ƒ-tokens on the404.io platform, allowing you to benefit from increased liquidity while still retaining partial ownership of the NFT.

  3. Staking: Stake your ƒ-tokens in designated pools to earn additional rewards in the form of $FOF tokens, incentivizing long-term participation.

Important Considerations

  • Gas Fees: Be aware that the process of fractionalization involves transaction fees (gas fees). Ensure you have enough ETH in your wallet to cover these fees.

  • Security: The platform ensures the security of your NFTs through the vault mechanism. However, always practice good security hygiene with your wallet and private keys.

  • Community Voting: For non-partnered collections, the inclusion of certain NFTs might be subject to community voting. Engage with the community to ensure your NFT gets the necessary support.

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Last updated 8 months ago