The Fraktal DAO on Arbitrum is the holy grail of the Fraktal ecosystem. It manages the marketplace, fees, funds and the protocol for fractionalizing NFTs. The more protocol usage, the more fees are collected and distributed to members of the DAO. We designed a model where users are paid to participate, which we believe is the future for any type of voting mechanisms or governance.
What is Arbitrum?
A layer 2 solution designed to improve the capabilities of Ethereum smart contracts — boosting their speed and scalability, while still providing the high level of security of Ethereum’s layer 1.
Whereas independent layer 1 blockchains, often naively hyped as ‘Ethereum killers’ do feature lower gas fees, this is because their network is less robust, less secure, and consequently cheaper than Ethereum. Ironically, many of these blockchains are intentionally built to be EVM compatible and are not scalable themselves.
Why are we focusing on Arbitrum?
Because it offers the best user experience possible, which means low cost, fast, and highly secure transactions that are ultimately settled on Ethereum mainnet. Instead of launching our marketplace directly onto an expensive Ethereum Mainnet or worse — a cheap, inferior layer 1, we are building on a truly secure and cost effective network.
How Fraktal DAOs are structured.
Our primary DAO is on Mainnet and holds the Fraktal treasury and any assets of value. To avoid exorbitant gas costs on Mainnet, we deployed a clone Fraktal DAO on the xDai network. The DAO on xDai is used specifically for vote intensive proposals such as displaying NFT’s at galleries or operations focused proposals where no value is being moved as a result of the vote. The xDai network offers low-cost, on-chain transactions that are secure enough for voting, but inadequate for managing transactions where significant value is being moved, unlike Arbitrum.
What the future holds and how Arbitrum fits in.
Phase 1
Arbitrum replaces xDai. All xDai DAO members must ragequit and redeposit their tokens into the Arbitrum DAO. This process will not be automated. Voter turnout has been low, and we believe active participants should be rewarded with the fees collected from the Fraktal marketplace and protocol.
Phase 2
Arbitrum replaces Ethereum Mainnet and funds are migrated to the Arbitrum DAO. The biggest challenge in migrating Fraktal’s assets to Arbitrum is building a bridge from Mainnet supporting NFTs. Once the assets have been bridged, the Fraktal marketplace and protocol can be deployed on Arbitrum. The protocol can technically be deployed on Arbitrum now, but there is no way to send NFT’s to Arbitrum, so there would be no point.
Arbitrum Deployment
Due to concentrated activity in the first 2 iterations of Fraktal DAOs among a handful of participants, we decided to take a different approach when deploying this DAO. We have chosen the 7 most active participants (by contributions to Discord, GitHub, social media, and general business development). These 7 members are the genesis Arbitrum DAO members.
The founding DAO members are:
Cryptnotiq 0x77DD52c08F4aAA9dA42ED1bF2e738B8969Ab980F : Designed the initial Fraktal protocol and is an active contributor and voice in pushing the project forward.
Arthunter 0x46ec2102EB83eF52a1193489d52F22D6C1b1B97D : NFT Collector contributing to partnership strategies and artist collaborations.
Stras 0x7DCb309e6900Fc6e1ea580f438883B8F886d3E53 : Running marketing
earth2travis 0xbc5b552641e5d203f0a6c230aa9dc14da7450053 : Keeping everything running smoothly on the development side and largely contributing to every aspect of the project
DrHongo 0x7932810A66FEdc6c72a2578Fc83F44521832DEC2 : Writing smart contracts
Torgmeister11 0x77fa39f3adf09bde9d4f175e40d0854d21a33318 : Helping run Discord and contributing to writing, leading the community while also building an NFT AMM project using the Fraktal protocol
MR_LIGZ 0x6fEF3D3226e9da958cC66bCb513db55224E1F1AE : Marketing ninja and social media strategist
Without these contributors, Fraktal would not exist. We have decided to airdrop each of these contributors 5m FRAK (worth ~$10,000 at the time of publishing) directly into the Arbitrum DAO to be used as voting shares. Each member is free to increase their voting power by tributing more FRAK into the DAO. These members have proven to form the foundation of the Fraktal ecosystem and the backbone for bootstrapping the Arbitrum DAO. If you disagree with any of these members, you can join the DAO and issue a proposal to kick them out.
Everyone else currently in the xDai DAO must follow these steps to join.
Arbitrum is its own blockchain (L2), you are required to bridge ETH or any ERC-20 token via the Arbitrum Bridge and add the Arbitrum network to MetaMask.
Steps
- Ragequit from XDai DAO
- Open a Proposal to exit the DAO. When you do so, you receive your share of the DAO Bank (i.e your FRAK)
- Transfer FRAK from xDai to Ethereum via https://omni.xdaichain.com/bridge
Make sure metamask network is on xDAI. xDAI FRAK address: 0x2473b9380a8cbb195544bc8577b2f8a076e96320
2. Migrate funds to Arbitrum: Go to https://bridge.arbitrum.io/
- Transfer ETH to Arbitrum to cover gas costs
- Transfer FRAK by inputting the ERC-20 FRAK address (0xa6a5deea66550772d4a2d77ecbe0187451a4f19e) and choosing FRAK from the drop-down.
3. Add Arbitrum to MetaMask
Getting Arbitrum on MetaMask is simple and is the same as addingother EVM blockchains. All you need to do is enter the network details on the Custom RPC addition feature in your MetaMask wallet.
Open the MetaMask extension and drop-down the “Ethereum Mainnet” at the top right corner. This opens networks where you can choose a different EVM blockchain or you can add a new custom EVM (Ethereum Virtual Machine) network of your choice.
Click on the Custom RPC and enter the following details to connect to the Arbitrum One network.
- Network Name: Arbitrum One
- RPC: https://arb1.arbitrum.io/rpc
- Chain ID: 42161
- Currency Symbol: ETH
- Block Explorer URL: https://arbiscan.io
4. Add FRAK as custom token in MetaMask to see balance: 0xad21d62155531786bb4850776afb94d2e602d6b3
5. Propose to Join Arbitrum DAO: Open a new member proposal on the Fraktal DAO and request as many shares as FRAK you are depositing (10 FRAK = 10 Shares).
That’s it. Once you have done that, sit back and wait for your proposal to be voted through and become a member of the Fraktal DAO.
Also, be on the lookout for announcements regarding games and ways to earn FRAK by being a participant in the DAO.