Lifecycle of a Fractional NFT (fNFT)
Guide to the Lifecycle of a Fractional NFT (fNFT) on Toto Chain
The economic and reward system of the Toto Chain is built around a unique and engaging asset: the Fractional NFT (fNFT). Also known as "puzzle pieces" or "tickets," these are more than just collectibles; they are the keys to unlocking the most valuable rewards the network has to offer.
This document explains the complete lifecycle of an fNFT, from its creation and distribution to its ultimate purpose: being claimed for high-tier rewards.
Stage 1: Creation - Fractionalizing an NFT
The journey of an fNFT begins when a user or community project decides to contribute a full NFT to the ecosystem.
Submission to the Magic Box: A user submits a standard, full NFT to the "Magic Box," which is the system's central Reward Pool. This action locks the original NFT inside the pool.
Minting fNFTs: The Magic Box then automatically mints a new series of fNFTs that are directly associated with the locked NFT. The number of fNFTs created in a set is not arbitrary; it is determined by a core rule of the chain:
The number of fNFTs minted is equal to the number of active, successful referrals the submitting user has at that moment.
This clever mechanic directly links the supply of reward assets to the growth of the user base, ensuring that rewards scale with the network's expansion.
Stage 2: Distribution - Earning fNFTs
Once created, fNFTs are distributed to active participants as rewards for performing valuable on-chain ACTIONS. These actions are the primary way for users to acquire the "puzzle pieces" they need.
The main distribution methods are:
Block Production: For every block they successfully produce, a validator receives one fNFT. This is a consistent reward for securing the network.
Referring New Users: The referral system is a powerful driver of fNFT distribution. When a new user accepts a referral:
The new user (the referee) receives an fNFT.
The user who referred them (the referrer) also receives an fNFT.
All direct parents in the referrer's branch of the referral tree also receive an fNFT.
The Wild Card: How Magic Pieces Appear
To make completing sets more achievable, the system includes a special "wild card" fNFT known as a Magic Piece. Unlike regular fNFTs, these are not tied to a specific NFT set and can be used to substitute for any missing piece.
Magic Pieces are not earned directly but are minted and distributed automatically based on overall network activity:
Trigger Mechanism: A Magic Piece is generated for every
Xnumber of regular fNFTs that are distributed across the entire chain, whereXis a configurable frequency parameter.Random Distribution: Once minted, the Magic Piece is stored in the Reward Pool and then randomly distributed to a user within the next 28,800 blocks (approximately 24 hours). This distribution is tied to chain activity, not individual user actions.
Stage 3: Collection - Assembling the Puzzle
As users participate in the network, they accumulate various fNFTs from different sets. The primary goal is to collect all the unique "puzzle pieces" that correspond to a single, full NFT locked in the Magic Box.
Like regular tokens, fNFTs can be transferred or traded between users. This allows for a secondary market where users can buy or sell the specific pieces they need to complete their sets.
Stage 4: Redemption - Claiming the Reward
This is the final and most rewarding stage in an fNFT's lifecycle. Once a user has collected a full set of fNFTs (or used Magic Pieces to complete it), they can claim their prize.
Submitting the Full Set: The user initiates a manual, on-chain transaction, submitting their complete set of fNFTs (and any Magic Pieces used) back to the Magic Box.
Receiving the Core Asset: The chain's logic verifies that the set is complete. If it is, two things happen immediately:
All the submitted fNFTs and Magic Pieces are burned (permanently destroyed).
The user receives the liquid core asset, TOTO, directly in their account.
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