Fracton Protocol is an innovative DeFi infrastructure that enhances NFT liquidity by splitting high-value NFTs into fungible ERC-20 tokens. According to data from CryptoComLearn, the protocol has introduced HiBAYC, which represents 1/1,000,000 ownership of a Bored Ape Yacht Club (BAYC) NFT, fully backed by an on-chain BAYC Meta-swap pool operated by Fracton Protocol.
Mechanism: NFT Fractionalization & Instant Redemption
The core of Fracton Protocol lies in its Meta-swap pool, where real BAYC NFTs are locked and equivalent HiBAYC tokens are minted. The circulating supply of HiBAYC exactly matches the number of BAYC NFTs in the pool, multiplied by 1,000,000. Users can mint new HiBAYC by depositing BAYC, and redeem BAYC by burning enough HiBAYC at any time. This mechanism dramatically lowers entry barriers for blue-chip NFTs while preserving liquidity.
FT Tokenomics: Supply & Historical Peak
Beyond fractional tokens, Fracton Protocol issues its native governance and utility token FT. Its all-time high price reached $7, though the current price has declined since then. As of May 25, 2026, the circulating supply of FT stands at 87,472,220 tokens, with a hard cap of 100,000,000. This leaves approximately 12.53 million FT yet to be unlocked, indicating moderate inflationary pressure.
Storage Options for FT
FT holders can store their tokens via custodial wallets on exchanges for convenience, or opt for self-custody solutions such as browser-based wallets, mobile/desktop applications, hardware wallets, third-party crypto custodians, or paper wallets. Each method balances security and accessibility differently; users should evaluate based on their risk tolerance and technical expertise.
Market Implications & Risk Considerations
Fracton Protocol democratizes access to high-value NFTs, enabling retail participation in blue-chip collections while improving NFT market liquidity. However, fractional token prices may decouple from the underlying NFT floor price, and smart contract risks apply. FT is currently traded on exchanges like KuCoin, offering decent liquidity. Investors are advised to conduct thorough research before engaging.