Fractional CryptoPunks
Fractional CryptoPunks allows you to buy $PUNK tokens through 0x Protocol aggregated liquidity sources. $PUNK token is backed by real CryptoPunks in the NFTX Vault, and 1 $PUNK token can claim a CryptoPunk from the NFTX vault.
You are buying 0.17% of a CryptoPunk at an effective value of 0Ξ. The cheapest CryptoPunk on the market is Ξ so you are dollar cost averaging in at Ξ the cheapest CryptoPunk
You are paying
0 Ξ
About Fractional Punks
Fractional ownership allows users to purchase a portion of an NFT, making high-value digital art and collectibles more accessible to a broader audience. Let's break down the key components of this tool:
- Fractional CryptoPunks
- Individual CryptoPunks, which are unique digital artworks on the Ethereum blockchain, can be owned fractionally. Instead of one person owning a single CryptoPunk, multiple people can own shares or fractions of it.
- $PUNK Tokens
- These are the digital tokens representing fractional ownership of a CryptoPunk. Owning $PUNK tokens means holding a share of a CryptoPunk stored in the NFTX Vault, a mechanism designed to deepen NFT liquidity by facilitating the fractional ownership of NFTs.
- 0x Protocol
- This is a decentralized exchange protocol that allows for the trading of these fractional shares ($PUNK tokens) among interested buyers and sellers. The protocol aggregates liquidity from various sources, making it easier for users to buy and sell their fractional shares without significant price slippage. This implementation uses the
feeRecipientTradeSurplusfeature to capture any surplus tokens to fund future developments. - NFTX Vault
- NFTX is a platform that enables the creation of tokenized funds based on NFTs, allowing for fractional ownership. A CryptoPunk stored in an NFTX Vault is the underlying asset backing the $PUNK tokens. Essentially, the vault acts as a secure storage for the NFTs while the tokens represent claims on those assets. There is currently more than $5 million liquidity in the pool
- Fractional Value Calculation
- With each CryptoPunk being represented by a 24x24 pixel image (576 pixels total), and each $PUNK token being backed by one CryptoPunk, the fractional value of each pixel (or square) can be calculated. If 1 $PUNK token equals 1 CryptoPunk, then the fractional value of each pixel is 1 divided by the total number of pixels (576), resulting in each pixel representing 0.001736111111 of a CryptoPunk.
- What is the Tip?
- This is a 0.5% part of the transaction that goes to the developer wallet. It is taken from the additional tokens you get above and beyond your purchase through 0x thanks to positive slippage.
This fractionalization approach makes it possible for investors and collectors to participate in the ownership of highly valuable and sought-after digital collectibles like CryptoPunks without needing to afford the full price of one NFT. It democratizes access to a previously exclusive market and adds liquidity to the NFT space, allowing for more dynamic trading and valuation of digital art.