First of all, for our audience who does not yet understand the word NFT, let’s jump right into it. NFT or Non Fungible tokens are the token that is created and cannot be exchanged with any other token, making them unique in the whole blockchain. In recent times we have seen a lot of NFT marketplaces where users can go and buy their NFTs created by various artists. But here comes the issue, since NFTs are so much in demand and prices are shooting, it’s very difficult for a normal user to own an NFT by paying a hefty amount of money.
The solution to this is an FNFT or Fractional NFT which gives users an option to buy and own a fraction of an NFT asset. FNFT is the latest innovation in this industry and a lot of investors are investing in this kind of technology one of the major examples of the same is fractional.art. So fractional is a tool or rather a protocol that is decentralized and enables users to collectively own an NFT. And at the same time its good for a single NFT owner to liquidate some portion of NFT to other users without losing a good part of ownership.
So the owners will be able to fractionalize their collections of NFTs and provide other users fractions. This also gives the actual NFT owner an advantage to see the actual worth of NFT. For example, if the owner liquidates 10% of the fraction to another which is sold at 1 million dollars so the total cost might be 10 million dollars for that NFT. And as the owner of fractions, users also get some benefits such as a right to vote on the reserve price for the asset which is the minimum price to be bid by a third party in order to initiate an auction. And Whenever the actual NFT is sold at some price, each fraction owner gets the respective amount of ETH.
Below is the chart which might help you understand the FNFT vault process
We will also be adding new tutorials for FNFT development, so please make sure to checkout our website.