[NEW] How works fractional NFTs? And what are they?
NFT's are the technology of the future, you know that. But today, the prices to get a quality NFT are exploding! We can quickly find ourselves having to spend several thousands of dollars or even ETH to obtain an NFT that will be profitable on the long term like the BAYC.
Fortunately for us, fractional NFTs exist.
But what are fractional NFT?
A fractional NFT... it's simply a whole NFT that has been split into several parts, allowing for a split price and ownership.
For example, let's take a $1,000,000 BAYC NFT. If its owner goes through a platform like fractional.art, he will be able to divide his NFT into as many entities as he wants. So he decides to divide his NFT into 1'000'000 fractions.
Thus, 1 fraction will now represent 1$. As soon as you own a fraction, you also own the NFT (well... a part of it on the blockchain). If the basic owner decides to sell his NFT for $2,000,000, he has done a x2. If you owned 10 fractions ($10), you would get $20.
A much more concrete example comes from the iconic NFT "Doge meme" sold for $4 million in June 2021. The buyer then split this NFT into 17 billion entities. Making the fractions accessible for almost nothing.
How does the fractional NFT work?
Basically, an NFT is just a token that uses Ethereum ERC-721. The latter is embedded in a smart contract (a program running on the blockchain). This smart contract will then split the ERC-721 token into multiple fractions in the form of an ERC-20 token.
We take here the example of Ethereum but it works the same way on all blockhains.
Where to buy fractions of NFT?
Here are the top 3 according to NMB of the best platforms:
We hope that this article and this popularization of NFT fractions was useful to you and we say to you very soon on NFT Media Boost! If you want to improve the visibility of the networks of your NFT project, we offer specific boosts and tested by many users: