9. Tokenomics and Token Sale


The tokens are a determining factor to achieve our vision, giving the community decision-making power, agency and a voice.
The Fragnova ecosystem revolves around three central tokens:
  • FRAG: ERC-20 utility token, focal point of our tokenomics
  • NOVA: utility token, general token on the Fragnova chain
  • TICKET: utility token, used for development and curation.
Besides the tokens listed above, there will be other tokens in the Fragnova chain created specifically for individual games and apps (User Generated Tokens - UGT).
Token Name
Main token
Swap NOVA,
Generate NOVA and TICKET, Governance, PoS validator
Secondary token
Lock FRAG, Swap UGT
Pay fees, Buy Fragments, Swap
Secondary Token
License Protos, Curate
User Generated Tokens (UGT)
Specialized token
Varied, determined by creators

FRAG Token Utility

In summary, FRAG token utilities are:
  • The only way to generate NOVA and TICKET tokens indefinitely thanks to the Lock Function.
  • All utilities provided by NOVA and TICKET tokens, including development, curation, swap and more.
  • Grant governance rights to holders.
  • Becoming a PoS validator.
FRAG is an indispensable part of the network and holds true, platform defining, value. The secondary tokens are untradable and directly related to FRAG, further deepening the significance and appeal of FRAG.
FRAG aligns the incentives of creators, game developers, curators, players, and other participants, creating positive feedback loops.
FRAG is the only token that enables users to participate in all aspects of the Fragnova ecosystem by generating the necessary secondary tokens over time, indefinitely, while keeping the FRAG’s original amount and value.
The main use of the FRAG token is for the Lock Function, in which a user can lock their FRAG for a period of time in order to generate NOVA and TICKET tokens.
Holding FRAG means having a constant earning of the secondary tokens and being able to participate directly in the decentralized marketplace, development of games and metaverse experiences, curation of the ecosystem and licensing of assets.
The FRAG token also provides governance rights, allowing users to vote on issues that oversee the development and operations of the Fragnova ecosystem. Holders of FRAG will have the opportunity, and responsibility, to shape the open metaverse, and also the tools that will make its development possible.
Finally, holders of the FRAG token will have the opportunity to stake FRAG to become a PoS (Proof-of-Stake) validator on the Fragnova Network. In blockchain, staking to become a validator is the process of locking a certain amount of cryptocurrency to participate in the validation of transactions and creation of blocks.
The validators are incentivized to act honestly and validate transactions accurately, as they stand to lose their staked collateral if they are found to be acting maliciously. However, for those willing to be honest validators, staking can provide a significant source of passive income.
Some of the functions received from becoming a Fragnova PoS validator include becoming a Lazy Evaluation evaluator, a Private Inventory (utilizing Zero Knowledge) prover and an Encrypted Storage facilitator for Secret Protos. The capability of producing blocks is also being considered.

FRAG Lock Function

A FRAG token holder will be able to lock their token in Ethereum for a determined amount of time (chosen by the user from our predetermined options) in order to receive NOVA and TICKETS in the Fragnova chain.
The user receives exponentially more secondary tokens the longer they choose to lock their FRAG tokens.
Once the determined time passes the user will be able to unlock their FRAG tokens, but this does not happen automatically since there are transaction fees that need to be paid. Once the FRAG is unlocked, the user may lock it again to earn secondary tokens or sell their FRAG.
Once FRAG is locked a share of the generated NOVA and TICKETS is granted immediately, while the remaining amount is evenly released weekly.

NOVA Token Utility

The NOVA token utilities are:
  • Payment of transaction fees on the Fragnova chain.
  • Purchase Fragments (digital assets) from the decentralized marketplace.
  • Swap for Game Tokens.
  • Swap for FRAG.
NOVA is the general token for the Fragnova ecosystem, being used for most activities in the platform. With it users can pay for transaction fees, purchase digital assets on the decentralized marketplace, acquire Game Tokens and even FRAG.
NOVA (and the Fragnova chain) was created in order to allow users to do multiple transactions for a fraction of the fee cost compared to ETH. In many cases Fragnova can and will sponsor certain transactions. This is extremely important so games can be played while blockchain transactions record changes without the platform, or users, having to pay unnecessarily high fees.
NOVA can be bought or sold using Game Tokens. This is done by swapping the two tokens using decentralized automated market-maker (AMM) protocols, which adjusts the price of an asset based on its supply and demand.
Every week the Fragnova Foundation will release an amount of FRAG that is auctioned using NOVA within the Fragnova chain, allowing members of the community to earn FRAG with NOVA they yield from locks and by playing games.

TICKET Token Utility

TICKET is the token related to creation and curation functions associated with Protos. They are used to license Protos on the Creator Store or Rare Engine.
TICKETS are untradable and can only be acquired by locking FRAG or when other users license a Proto, granting the Proto owner a small percentage of the TICKETS used.
Users can spend any amount of TICKETS directly on a Proto, effectively licensing it for a period of time.
Users do not need to spend TICKETS to upload their Protos to the Creator Store. They also do not need to spend TICKETS on their own Protos in order to license them.
Depending on how many TICKETS were used, the user can receive different benefits:

I - The permission to publish/upload an original Proto using the licensed Proto.

The new original Proto can then generate Fragments (games, items, avatars) that can then be sold in the Metaverse Store. This original Proto will forever be linked to the licensed Protos, and will perpetually distribute royalties to it whenever a Fragment is sold, even after the license expires (more on how royalties are distributed in the Royalties Flow section).

II - Royalties as a curator, based on the amount of TICKETS used.

Every time a user supports a Proto by licensing it, that user automatically becomes a curator and will receive curator royalties. Curators are important to the ecosystem because by spending TICKETS they are signaling that the asset is of good quality and deserves to be highlighted.

III - Benefits from custom Proto mechanics (access to DLCs, content unlock, etc).

Certain Protos, like the final Proto of a game, might give specific benefits to users who license it. These benefits, and how many TICKETS are required to unlock them, are decided and created by the Proto owner.

UGT (User Generated Token) Utility

Each game or app in the Fragnova Network can have their own tokens, and all of them are considered User Generated Tokens. Their in-app utility, and if they are tradable or not, is determined by the developer.
Some UGT might even be accepted in multiple applications if the developers allow that crossover.
UGT can be swapped for NOVA and when buying certain Fragments in the Metaverse Store, if the seller accepts that token.

Token Sale and Distribution

FRAG token is offered through several rounds of private and public sales. There are a total of 1,000,000,000 pre-minted FRAG tokens.
FRAG tokens will be allocated to participants in private and public sales as well as partners and advisors, the core team, and the Fragnova Foundation. Additionally, a separate reserve will fund grants and various community incentives.
Participants in the first two rounds of the private sales include several prominent VC funds specializing in gaming, NFTs, and Web3.
Note that the tokenomics section presented here represents our long-term plan for the Fragnova Network and will be implemented in stages.
Please keep in mind that our tokenomics plan is not final and is subject to changes. We will continuously monitor and evaluate our progress, and make necessary adjustments to ensure that we are aligned with our goals and the needs of our community.