For Curators
How do we get owners of highly valuable NFTs to fractionalize them?

Benefits of fractionalizing an NFT:

Curator Fees:

Curator fees are the core of monetization for NFTs on Fractional. When an NFT holder who wants to fractionalize their token (curator) brings an NFT to the platform, they are able to choose a fee. This fee is the annual supply inflation of the fractions of the NFT they lock up. This is constantly dripped to the curator. This fee unlocks consistent returns equal to a percentage of the total value of the trading fractions.
This fee can be updated at any time by the curator. This value is capped at a maximum which is set by Fractional governance to disallow for hyperinflation.

Increased Utility and DeFi Legos:

Through fractionalizing an NFT, the curator is able to reduce their ownership of their NFT(s) by distributing a percentage of their fractions to others in whichever way they desire, while also maintaining bragging rights that they own a fraction of the NFT. Options include creating a mechanism to realize liquidity through third party AMMs such as SushiSwap or UniSwap, creating competitions, or fun airdrops to target audiences.
By fractionalizing NFTs into ERC20 tokens, tokens will be able to be used in native DeFi protocols in the existing DeFi ecosystem such as AMM pools, lending platforms, and options protocols.
This unlocks a variety of use cases for the NFT holder.
Last modified 3mo ago