Overview
A fractional NFT is an NFT split into fungible shares, letting multiple users own a fraction of one asset. It increases liquidity and access. Fractionalization is enabled by wrapping contracts.
How It Works
The NFT is locked in a vault that issues fungible tokens representing fractions. Owners can trade shares, and governance decides when to redeem. This divides the value and liquidity of the asset.
Why It Matters
Fractionalization unlocks liquidity for high-value NFTs and democratizes ownership. It expands the NFT market. Its regulation and governance add complexity.
Related Concepts
Fractional NFTs relate to NFT Liquidity, Vaults, and Ownership. They tokenize fractions of a single NFT.