From Equestripedia, the Archives of Equestria!
Frags ("Fragments of metal") are a type of currency used in Klugetown.
While Klugetown has no official currency, Frags are one of the commonly accepted forms of payment. They have no official status, but are accepted simply because they're commonly used among the denizens. Apparently they were first used as a form of an "IOU", but have since become a semi-accepted currency in their own right.
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