How To Fractionalize an NFT Using Fractional.art
Fractional.art provides a gateway and friendly GUI to interact with the fractional protocol, which is a decentralized smart contract deployed on Ethereum mainnet and accessible to anyone.
This guide walks you through how to use fractional.art to fractionalize NFT(s) and receive a supply of fractional ownership tokens (i.e. ‘fractions’). To learn how to interact directly with the smart contract, click here. Once fractionalized, it is up to you how you would like to distribute the tokens. One way to do this is by setting up a liquidity pool for users to buy the fractions, which you can learn how to do here.
Step 1: Navigate to fractional.art
Step 2: Connect your wallet (i.e. Metamask)
Step 3: Select the NFT(s) you’d like to fractionalize. Then set a Name, Supply, Symbol, Reserve Price, and Annual Management Fee.
- Name: Name of your vault.
- Supply: The amount of fractionalized tokens to be created by the vault
- Symbol: Symbol/Ticker representing the fractions
- Reserve Price: Price needed to trigger an auction/buyout of the fractionalized NFT(s)
- Annual Management Fee: The asset under management fee distributed to the curator on a yearly basis
Step 4: Mint the NFT Basket, then…
- Approve the NFT basket
- Approve each NFT (each NFT needs individual approval)
- Transfer the NFT(s) (each NFT needs to be transferred individually)
- Fractionalize the NFT(s)
Once the Fractionalization transaction is confirmed, the vault is created.
Step 5: Now you can click “Settings & Actions” on the vault’s page to:
- Add description: Edits the description of the vault.
- Update auction length: Set an auction length between 3–14 days. Default is 7 days.
- Update reserve price: Updates your vote for the reserve price. The more tokens you own, the higher weighting your vote holds. Learn more here.
- Redeem NFT(s): You can burn the fractionalized tokens (if you still own 100% of the supply) and redeem the underlying NFTs.
- Add to Metamask: Adds the ERC-20 fractional ownership token symbol to Metamask for easy tracking.
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Disclaimer: The Fractional Token Company, its officers, team, and community representatives are not registered financial advisors. All opinions shared on Twitter, Discord, or through other public channels are those of the respective individuals alone. Fractions (fractional ownership tokens) are solely intended to increase participant access to collectable, provable ownership of digital art and their respective communities. Fractional does not condone the creation, buying, or selling fractions as a means of investment. The Fractional Token Company is not responsible for how curators choose to market their NFTs. Similarly, The Fractional Token Company does not create, handle, or manage the intermediary platforms, or networks through which fractions can be transferred, sold, or purchased. Publications from Fractional.art are solely for information and entertainment purposes only. Please consult and work directly with tax, legal, financial, and investment professionals before making any fractional creation, transferring, and purchasing decisions.