10/Future Plans
Discussions below summarises Frac's current thinking on the future of Frac. These plans may change. Frac is not committing to deliver any of the items below. Readers discretion is advised.
Last updated
Discussions below summarises Frac's current thinking on the future of Frac. These plans may change. Frac is not committing to deliver any of the items below. Readers discretion is advised.
Last updated
Potential Utility Expansion for Frac Token
Supporting $FRAC price with a basket of High-Performing Tokenised Assets
$FRAC is designed to be a versatile utility token within the Frac ecosystem, supporting fractional ownership of real-world assets. To enhance the stability and intrinsic value of $FRAC, we are considering to gradually build up a reserve of High-Performing Tokenised Assets ("HPTA"), which could be in physical or digital fractions, to support the price of $FRAC.
If implemented, the building up of the the High-Performing Tokenised Assets Reserve (HPTAR) will be gradual, as Frac requires time to shore up its revenue to be able to purchase HPTA to the required level.
The vision is for the Frac Token is to be a Global Digital Asset Reserve Currency, backed by a portfolio of the highest performing tokenised assets, that are the most liquid.
Potential Product Enhancement
Real World Asset Pricing Data Aggregator platform Frac builds an innovative Pricing Data Aggregator platform dedicated to the tokenized Real-World Assets (RWA) market. This platform is designed to function as a comprehensive resource for tracking the prices, market performance, and other relevant data of tokenized assets, much like Coingecko or CoinMarketCap does for cryptocurrencies. However, instead of focusing on traditional digital assets, this platform will cater specifically to tokenized tangible and intangible assets such as Treasury Bills (T-Bills), real estate, gold, silver, gemstones, luxury goods, and other high-value assets.
One big possible enhancement is the use of DN404s. https://metlabs.io/en/dn404-standard-main-features/
Integrating the DN404 standard into Frac's technology offers a compelling opportunity to enhance its existing web3 solutions, particularly in the domain of fractionalizing assets. The DN404 standard, being a hybrid between fungible and non-fungible tokens (NFTs), aligns seamlessly with Frac's mission to enable fractional ownership of a wide array of assets. Here's a detailed integration strategy: - Asset Fractionalization Enhancement
Current State: Frac enables the fractionalization of real-world assets into multiple parts, allowing them to be co-owned by several investors.
Integration with DN404: By adopting the DN404 standard, Frac can leverage its hybrid token model to improve the liquidity and accessibility of fractionalized assets. DN404's capability to split NFTs into smaller, fungible units could allow for even more granular ownership levels. This would make investments in high-value assets like real estate or antiques accessible to a broader audience, including those with limited capital.
Current State: Asset owners currently have a portal to create fractions for ownership of their assets, with control over the creation process and sale thresholds.
Integration with DN404: Integrating DN404 into the portal would mean asset owners can now issue fractions that are not just portions of ownership but are also tradable and have liquidity similar to traditional securities. This could include setting parameters for the fungibility of fractions, enhancing the attractiveness of their offering to investors by providing more flexibility in ownership and trade.
Current State: Frac has an Asset Initial Offer platform where investors can buy fractions of different assets.
Integration with DN404: The platform can be enhanced to support DN404 tokens, allowing for a more seamless and efficient initial offering process. The DN404's improved liquidity features mean that initial buyers can have confidence in the easier resale of their fractions, potentially attracting more investors to initial offers.
Current State: Frac's decentralized exchange allows for the trading of asset fractions without a central authority holding funds or taking custody of the fractions.
Integration with DN404: The DN404 standard can significantly enhance the functionality of this exchange by reducing transaction costs and optimizing data storage, thanks to its technical innovations. The exchange could support a more diverse set of fractionated assets with improved trading mechanisms, making it a more attractive platform for investors.
Given that DN404 is under development and requires comprehensive security audits, Frac should invest in rigorous security measures and audits to ensure the reliability of the DN404-integrated solutions. This includes smart contract audits, penetration testing, and possibly establishing a bug bounty program to identify and mitigate potential vulnerabilities.
To maximize the adoption and success of DN404-integrated offerings, Frac should also embark on an educational campaign. This would involve creating resources to help both asset owners and investors understand the benefits and operations of DN404 tokens, including the technical and financial advantages they bring.
Another technical upgrade could, potentially involve ERC3643. https://www.erc3643.org/
Integrating ERC3643 into Frac's current product suite could significantly enhance its capabilities in the area of security tokens, particularly for assets that require a high degree of regulatory compliance and investor qualification. ERC3643 introduces permissioned tokens with conditional transfer functions, which are validated by a decentralized validator based on predefined governance criteria. This mechanism aligns perfectly with the need for controlled transactional freedom in financial instruments like security tokens. Below are detailed strategies for integrating ERC3643 into Frac's technology:
Current State: Frac's platform enables the fractionalization of various assets, allowing multiple owners to co-own a single asset.
Integration with ERC3643: By adopting ERC3643, Frac can introduce permissioned fractional ownership, where each fraction (or security token) requires approval from a decentralized validator before it can be transferred. This ensures that all transactions meet specific regulatory or issuer-stipulated criteria, making Frac's offerings more compliant and secure. It allows Frac to cater to a broader range of assets, including those with stringent regulatory requirements.
Current State: The portal allows asset owners to create and manage asset fractions, setting terms for their sale and distribution.
Integration with ERC3643: The portal could be enhanced to incorporate features for setting and managing the governance criteria required for each asset's fractions to be transferred. This could include compliance checks, investor qualifications, and regulatory adherence. Asset owners could specify these criteria directly, making their offerings inherently compliant with necessary regulations and more attractive to cautious investors.
Current State: Investors can buy fractions of assets through an initial offer platform.
Integration with ERC3643: The platform can integrate a pre-check process to verify transaction compliance with the decentralized validator before any transfer. This ensures that only eligible investors can participate in initial offerings, enhancing trust and regulatory compliance. It also provides clear feedback and guidance on compliance, helping investors understand and meet necessary criteria.
Current State: Frac's decentralized exchange allows for the trading of asset fractions.
Integration with ERC3643: The exchange can incorporate ERC3643's conditional transfer function, requiring validation for each trade based on compliance with governance criteria. This adds a layer of security and compliance, ensuring all trades meet regulatory requirements and are approved by a decentralized validator. It makes the exchange more robust against illicit transactions and enhances investor trust.
Frac could adopt ERC3643's on-chain identity management approach, linking wallet addresses to ONCHAINID contracts. This would allow for direct control over the transfer of ownership, with compliance certificates issued by trusted third parties stored on-chain. This system enhances security, compliance, and investor confidence by ensuring that only verified individuals can hold or transfer security tokens. Additionally, it offers benefits like token recovery for investors who lose access to their wallets, further securing the ecosystem.
Given the complex nature of ERC3643 and its implications for security token issuance and trading, Frac should launch comprehensive education and adoption campaigns. These would aim to inform asset owners and investors about the benefits and requirements of ERC3643-compliant tokens, including the enhanced security, compliance, and governance control it offers. This could involve workshops, webinars, and detailed documentation to ensure a smooth transition and widespread adoption.
Upgrade to ZK (Zero Knowledge)-related chains
However to make sure gas fees are even cheaper, moving to ZK-based (Zero-Knowledge) solutions may be an answer. ZK chains are considered a layer two chain built on the Layer 1s stated above. Please view the table below for a better understanding:
Polygon
zkEVM
Ethereum
zkSync Era
BNB Smart Chain
zkBNB
