> For the complete documentation index, see [llms.txt](https://daofair.gitbook.io/doc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://daofair.gitbook.io/doc/daofair-nft-core-features.md). # DAOFAIR NFT Core Features ### DAOFAIR NFT Vault fragmentation Pledging NFT (or multiple NFTs) into the DAOFAIR NFT Vault will automatically generate an ERC20 token contract. owners of the DAOFAIR NFT Vault can set the percentage of tokens going into the secondary market, and set aside token distributions to the primary market/creative teams/community incentives. owners of the DAOFAIR NFT Vault can set the percentage of tokens going into the secondary market, and set aside token distributions to the primary market/creative teams/community incentives. owners of the DAOFAIR NFT Vault owners can pledge more NFTs into the DAOFAIR NFT Vault at a later date. For example, I send an NFT for Ayaboli. I pledge this NFT to the DAOFAIR NFT Vault and automatically get an ERC20 token. I can set the token name to FRAG and the total supply to 10,000, which cannot be incremented. I set 15% of the tokens to be released to the designated Ayakari Copyright Company's wallet address in a 1 year linear unlock, and 85% to go directly into the DAOFAIR liquidity pool for circulation at $1 = 1 FRAG. the price of FRAG goes up and down as transactions occur. Of course I could also issue one NFT for each character in the EVA anime and pledge all this set of NFTs into the DAOFAIR NFT Vault. ### Low Cost Creation of Liquidity Pools The DAOFAIR NFT Vault automatically creates a DAOFAIR Trading Pool and pledges in all FRAG tokens that enter the market. The initial price is defined by the owner of the DAOFAIR NFT Vault to start selling FRAG. as traders buy, the FRAG price will automatically increase. The market value of FRAG is the valuation of NFT. ### Buyout of DAOFAIR NFT Vault (optional) Since the pieces of DAOFAIR NFT Vault are already circulating in the market, regular users can enjoy the benefits of the NFT price increase by purchasing only the FRAG. **If a collector wants to buy out** the DAOFAIR NFT Vault**, he needs to pay the current NFT valuation** immediately. This money will go into the DAOFAIR NFT Vault contract, while all NFTs contained in the DAOFAIR NFT Vault will be transferred to the collector. At the same time, the parameters of the DAOFAIR Trading Pool are adjusted so that the FRAG is bought and sold at the FRAG price at the time of the collector's transaction. From this point on, the FRAG price will not change and the FRAG holder can exit at any time. It is important to note that buying up the DAOFAIR NFT Vault is not a mandatory process and the creator of the DAOFAIR NFT Vault can set a protection period to waive the buyout option, or even choose not to buyout the DAOFAIR NFT Vault. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://daofair.gitbook.io/doc/daofair-nft-core-features.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.