Why Fractional NFT
Fractionalised NFT for “Artist NFT” allows respective owners to gain access to greater liquidity, as the NFT is broken down into multiple fractions of ERC-20 tokens that can be sold or redeployed in other decentralised finance (DeFi) protocols. By fractionalising an NFT, the asset holder can enjoy various attractive benefits, including NFT price discovery, more asset liquidity, and democratisation of investment. This opens new exciting opportunities in digital art, augmented reality, gaming, fantasy sports etc.
The development of NFT application is in a nascent stage, and it is perhaps still too early to assess the full potentials of NFT fractionalisation, yet it will likely disrupt not only the world of fine art and gaming but also the decentralised finance applications of investment.