# Creation Energy FNFTs

## Tokenization Process of Generated Energy

In this documentation, we will explain the process of tokenizing the utility rights of the contract for the electricity-producing power plant, enabling us to operate legally within the countries where we generate electric power. It is important to note that we are not tokenizing the power generation plant itself, but rather the right to utility derived from electricity production.

1. Tokenization of Utility Rights: To begin, we tokenize the utility rights associated with the contract of the electricity-producing power plant. This involves converting these rights into Non-Fungible Tokens (NFTs). By doing so, we create digital representations of these rights, allowing for secure and transparent transactions on the blockchain. This process ensures compliance with legal requirements and regulations in the countries where we intend to generate electric power.
2. Establishment of Management Board: After successfully tokenizing the utility rights, we establish a management board within the administrative company. This board is responsible for overseeing the distribution of payments and the overall administration of the capital obtained through the sale of these FNFTs. One of the key representatives on this board is Luis Alberto Garcia Rodriguez. The board is tasked with regulating the capital's administrative aspects that will be utilized in conjunction with the FNFTs.
3. Capital Utilization and Collateralization: Once the FNFTs have been created and sold, the capital generated from the FNFT sales becomes available for utilization. One of the primary uses of this capital is as collateral to engage in "back-to-back" transactions with a financial banking entity or with the FRQTAL protocol itself. These transactions involve using the FNFTs as collateral for obtaining loans that can be employed to purchase additional electricity-producing power plants, thereby expanding our energy generation capacity.

By following this tokenization process and implementing the appropriate financial strategies, we can efficiently operate within regulatory frameworks, raise capital, and strategically invest in the expansion of electricity generation capabilities, contributing to sustainable energy production.



## Technical Details of the Created NFTs

The standard used for tokens is ERC-721, which operates on the FRQTAL subnet with compatibility for the Ethereum Virtual Machine. This means that, by using a bridge, NFTs can be exported to other networks.

The NFTs used in NRG Token are classified as FNFTs (Financial Non-Fungible Tokens) upon acquisition, providing the buyer with rental property rights. This unique feature allows the owner to generate rental income from the FNFTs.

The metadata stored in FNFTs includes essential information such as the wallet identifier, the user number within the FRQTAL protocol, as well as records of sales, purchases, and auctions conducted through this protocol.

Furthermore, FRQTAL servers store additional metadata related to the collection, including media shared by the collection creator, user photos, and display names for the application interface.

In addition, the collection creator also maintains specific data on their servers, including the decentralized application (dapp) associated with the FNFT collection.

By incorporating these technical details into NFTs and leveraging the FRQTAL ecosystem, we ensure secure and traceable transactions, unique FNFT properties, and robust metadata management to enhance the overall user experience on the platform.





## FNFT Generation and Allocation to Producers in the FRQTAL Protocol

When an NFT is purchased, it transforms into a Financial Non-Fungible Token (FNFT) within the FRQTAL protocol. At this moment, the capital used for the purchase is packaged and placed within the FNFT, effectively making the FNFT a participant in the protocol's mining process.

**Allocation of Packaged Capital within the FNFT:** The packaged capital within the FNFT is deposited into a component known as the "Liquid Price Floor," which resides within the liquidity pool. This specific portion of the capital is safeguarded and cannot be directly bought or sold as depicted in the price graph. The implementation of the Liquid Price Floor ensures that the capital within the FNFT possesses stable and solid price foundations within the protocol.

**The Role of the Liquid Price Floor and Liquidity Pool:** The liquidity pool plays a vital role in providing liquidity to the protocol, enabling efficient trading and exchanging of assets. The Liquid Price Floor mechanism ensures that the capital invested in FNFTs maintains a degree of stability and security, thus preventing rapid price fluctuations and contributing to the overall integrity of the protocol.

**FNFTs as Miners within the FRQTAL Protocol:** Upon becoming an FNFT, the NFT holder effectively becomes a miner within the FRQTAL ecosystem. This mining role allows them to actively participate in the validation and processing of transactions, contributing to the protocol's consensus mechanism.

**Benefits of FNFT Transformation and Mining:** The transformation of NFTs into FNFTs brings several benefits to both the protocol and the NFT holders. FNFTs gain the ability to earn rental income, leveraging their ownership of the token. At the same time, the protocol benefits from an expanded mining network, increasing security, and enhancing transaction validation.

By incorporating the Liquid Price Floor and FNFT mining mechanisms, the FRQTAL protocol fosters a robust ecosystem where NFTs gain new functionalities and participants actively contribute to the network's integrity and prosperity. The utilization of the Liquid Price Floor ensures a solid pricing foundation for the capital stored within FNFTs, enhancing the protocol's stability and reliability for all stakeholders involved.\
