What is fractionalized NFT (F-NFT)?

Fractionalized NFT (F-NFT) is an NFT that has been split into several individual tokens allowing for multiple people to have partial ownership over the entire NFT. This lowers the cost of investing in assets that would otherwise not be affordable.

How does the NFT work?

The NFT is fractionalized using a smart contract that generates a set number of tokens linked to the indivisible original. These fractional tokens give each holder a percentage of ownership of an NFT, and can be traded or exchanged on secondary markets.

What is fractional art?

Fractional.art is one of the most popular destinations for NFT investors to transform their ERC-721 NFT tokens into ERC-20 fungible tokens or fractionalized NFTs. Once an NFT holder creates fractions of their NFTs, the platform sets an initial value for each fraction and a buyout reserve price.

How does fractionalization work?

The target NFT gets locked into a smart contract during the fractionalization process. Then, the smart contract transforms into fungible tokens like ERC-20 on the Ethereum blockchain. The newly created fractionized NFTs will include a new set of metadata, price, and other properties.