Key Insights and Concepts for Curators, Creators, and Collectors
As we move into what will undoubtedly be an exciting year for Fractional, we’re taking a moment to pause and reflect on our genesis-block year. The Fractional protocol went live on July 26, 2021and since then, we have seen over 1,700 vaults created, hundreds of different collections fractionalized and over 45,000 wallets interact with the protocol.
We couldn’t be happier with the community love and support shown to Fractional over the past 5 months and are humbled to play an instrumental role in expanding access to coveted collections and onboarding a new community of collectors!
Based on our experience and observations over these last several months, we wanted to share some key insights and concepts for curators and collectors to understand further as we continue to build the best experience we can for all aspects of Fractional.
For Curators & Creators
ERC-20 vs. ERC-1155
One of our biggest product updates (which has flown a bit under the radar) was the ability for vault curators to choose whether fractions follow the ERC-20 or ERC-1155 token standard. By allowing different fraction types for new vaults, curators can select the standard that provides their desired collector experience and community engagement.
Communicating About Your Vault
What is the best way to describe a fraction of an NFT? We find words like fractions, fractional tokens, shards, and fractional NFTs best represent what a collector owns, not to mention different vault-specific utilities and community membership depending on the circumstances. We’ve seen a lot of incredible fractional use cases this year and cannot wait to see what the community thinks of next. We’ve also found that avoiding words that give the impression a collector will be buying a ‘share’ or ‘equity interest’ or ‘investment’ in a vault helps collectors understand what fractional collecting is, and perhaps more importantly, what it is not.
Decentralization
While vaults allow curators the freedom to determine their own level of connection to the vault to maintain, they also allow curators to determine how collectors can participate in owning fractions. Curators should consider the percentage of the vault they wish to retain and provide access to as many collectors as possible, which has shown to be a significant way to provide greater levels of community ownership.
For Collectors
Take Your Time
Learning and getting introduced to NFTs can be A LOT. We recommend a few resources such as NFTs 101, KnowYourNFT, and Understanding Web3 Wallets, plus joining some Discords, Twitter Spaces (biased of course towards DeeZe’s Spaces and Fractional Fridays) and embedding yourself in the broader NFT ecosystem to learn more about collections and find the ones that fit your vibe.
Selecting a Vault
When deciding which vault communities to join, we suggest understanding the various utilities offered by each vault. Some have token-gated Discords, permit access to unique communities and demonstrate support for a particular cause. Fraction collecting of popular vaults can be a great way to further embed yourself in the NFT community and support projects, artists, individuals and creators you believe in, all of which helps you get the most out of your collecting experience.
Understand the Buyout / Reserve Mechanisms
In addition to being part of a fractional vault community, owning a fraction allows you to participate in the governance of the buyout / reserve price for a vault. Be sure to vote to help set the reserve price. You can reference some key posts here:
Hopefully these insights and concepts are helpful!
If you have any additional questions, join us on Discord.
When in doubt, also please refer to these best practices for promoting your initiative or project!
Disclaimer: The Fractional Token Company, its officers, team, and community representatives are not registered financial advisors. All opinions shared on Twitter, Discord, or through other public channels are those of the respective individuals alone. Fractions (fractional ownership tokens) are solely intended to increase participant access to collectable, provable ownership of digital art and their respective communities. Fractional does not condone the creation, buying, or selling fractions as a means of investment. The Fractional Token Company is not responsible for how curators choose to market their NFTs. Similarly, The Fractional Token Company does not create, handle, or manage the intermediary platforms, or networks through which fractions can be transferred, sold, or purchased. Publications from Fractional.art are solely for information and entertainment purposes only. Please consult and work directly with tax, legal, financial, and investment professionals before making any fractional creation, transferring, and purchasing decisions.
