2021-03-17 19:23:17
New concepts in NFT protocols. Fractional
Fractional is a decentralized protocol by which NFT holders can mint tokenized fractional ownership of their NFTs. These tokens then function like regular ERC20 tokens that manage the NFTs they own.
Fractional ownership of NFT
Fractional allows you to buy and and receive% NFT ownership. You can stock up on a small fraction of the NFT hype Beeple or borrow a couple of pixels from the overly expensive Cryptopunk.
Along with this, NFT splitting allows the NFT holder to see some of the liquidity of his asset without selling it in its entirety.
NFT baskets
Along with individual NFTs, users will be able to split entire NFT collections and release them under a single shared ownership token. This will allow less educated users to rely on the industry knowledge of experienced NFT collectors.
Fractionation incentives
There are several reasons why an NFT owner might want to split their asset apart.
* An asset is extremely valuable, splitting an item and selling 20% in the market can be a valuable tool in helping to understand how the market values NFT.
* Liquidity: Owners have significantly better exit liquidity than if they owned the NFT themselves. This can be achieved with exchanges like Sushiswap and Uniswap.
* Curator Fees: NFT holders who lock their token (provide LP) will receive curator fees. These fees are set by the owner of the NFT, but are adjusted to prevent excessive fees. The curator's fee is similar to the fee for an asset under management. Each year, the curator will earn a percentage of the total stock offer. This will unlock the NFT percentage properties.
Fractional Ownership Benefits
When a user owns fractional parts of the NFT, he has the right to vote on the asset's reserve price. This reserve price is the price in ETH that must be offered by a third party to initiate an NFT auction. By default, the current reserve price is used for the new reserve price of token holders, but it can be changed at any time. Upon completion of a successful auction, all equity shareholders will be able to exchange their shares for ETH on a prorated basis. At any time, fractional tokens are normally functioning ERC20 tokens and can be used as such.
How does it work
As an NFT owner, when you go to the Fractional platform, you will be able to create an NFT network fund. This vault will take over your NFTs and in return provide you with 100% Fractional Ownership Tokens.
At this stage, the NFT owner can do whatever he wants with the tokens he has. For example, they can sell them at a Dutch auction, add liquidity to Sushiswap, or just give them to friends. Token holders fully own the locked NFT. If a buyer appears, he can send ETH equal to or higher than the reserve price of the asset. This will initiate an auction. At the end of the auction, the winner of the auction will receive an NFT and the token holders will be able to claim the paid ETH.
Factional control
The upcoming management token for the fractional platform will be responsible for ensuring the safety of buyers of NFT fractional ownership and ensuring that the platform works well. Management will also receive a small fee for work done to encourage users to own factions.
Looks promising. Let's wait for tokenomics and implementation
According to some insiders, a similar factional project is being prepared by at least several more protocols and large NFT collectors.
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