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
Connect Wallet: Connect your cryptocurrency wallet to the404.io platform.
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
Initiate Fractionalization: Navigate to the fractionalization section on the platform and initiate the process.
Smart Contract Execution: The platform will provide a smart contract to handle the fractionalization. Approve the contract interaction to proceed.
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
Minting of Fractional Tokens: The smart contract will mint an equivalent amount of ƒ-tokens (ERC-20) representing shares of the NFT.
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
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.
Fraction Allocation: Based on the assessed value, you will receive a fair and proportional amount of ƒ-tokens.
Step 5: Utilizing ƒ-tokens
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.
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.
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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