How Fractals Works

A simple overview of the entire process:

1. DePIN deployer tokenizes their device

   • Mints N Shards (usually an SPL token) and deploys the contract.

   • Sets sale price (e.g., 5 USDC per Shard) and designates the emission token.

2. Users acquire Shards

   • Browse live streams in the Fractals marketplace UI.

   • Swap USDC (or any other quoted token) for Shards via the on-chain smart contract.

3. Automatic token streaming

   • When the DePIN Deployer deposits the emission tokens to the Distribution Stream vault, the Fractals protocol splits the deposit among Shard holders pro-rata.

   • Streaming continues until the DePIN Deployer pauses, ends, or the predefined duration elapses.

4. Claiming proceeds

   • Shard holders can withdraw their accumulated emission tokens at any time. Accounting is done fully on-chain and guarantees token rewards to be calculated proportionally to their shard stake.

Example Distribution

Let's use an example distribution event when the deployer tokenizes their Helium device. Each time the deployer distributes the rewards (for instance, once a week), the distribution calculations would look like:

Distributed amount	User	Shards Owned	% Ownership	Tokens Received
1000	Bob	20	20 %	200 HNT
	Alice	80	80 %	800 HNT