DAO/Burn Mechanics

Alongside the direct token allocations, Fractora implements a robust “DAO/Burn” mechanism triggered by fee flows from swaps and borrow events:

• Swaps

  • wETH ↔ wfTOKEN: 0.4% to DAO/Burn

  • wfTOKEN ↔ wfTOKEN: 0.1% to DAO/Burn

• Borrowing 15% of the “profits” or interest fees from borrowers are routed to DAO/Burn.

2.1 DAO/Burn Distribution

Whenever funds hit the DAO/Burn reserve, they split into three streams:

1. 50% → DAO (buyback $FRAC)

2. 25% → Burn (buyback $FRAC, then burn)

3. 25% → USDC Reserve Stored for eventual epoch-based airdrops to active participants (swappers, borrowers, or locked liquidity providers).

The portion earmarked for the DAO is itself subdivided into two phases:

1. Phase One: 500 “Fractora Pass” NFTs

   • 50% of the DAO’s incoming $FRAC is distributed equally among these 500 spots.

   • The remaining 50% of that portion is burned.

2. Phase Two: Artistic PFP Collection (333 NFTs)

   • Once minted (target ~2 months post-mainnet), all DAO-based distributions move toward the full 888 NFT set (500 Pass + 333 PFP).

   • The first 500 Pass holders do not experience dilution—on the contrary, the total number of receiving NFTs increases distribution possibilities.

This setup encourages early, dedicated community members to hold the special NFTs and fosters expanded NFT utilities as Fractora evolves.

The collections will be mintable on dedicated platforms (e.g. OpenSea). "NFT Factora Pass" will be minted for 0.01ETH per NFT. Official collection links and mint start dates will be announced on social media, site and Telegram.

Once mainnet is active, DAO Rewards will be distributed automatically to NFT Holders either each 1 hour or when a new distribution is available.