NFT Fractionalization

NFT Fractionalization Mechanism

  1. Selection of NFT: Users choose an NFT from their wallet that they wish to fractionalize.

  2. Smart Contract Interaction: The platform provides a smart contract to handle the fractionalization process. The original ERC-721 NFT is deposited into a vault and an equivalent amount of fractional ƒ-tokens (ERC-20) representing shares of the NFT is minted.

  3. Token Distribution: The newly minted ƒ-tokens are distributed to the user, representing fractional ownership of the original NFT.

  4. Fractional Value Determination: The value of each NFT is assessed to determine the number of fractional tokens minted, ensuring a fair representation of its market value.

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