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The Future of Virtual Assets: Introducing the Fractional NFT

The Limitations of the Non-Fungible Token (NFT) Today

  • One NFT is not interchangeable by another
  • Each token has characteristics that make it unique

How Could We Imagine a Fractional NFT (F-NFT) ?

  1. The co-ownership of the NFT is not enough. The benefit of the features and/or services offered by the token must also be shared.
  2. The purchase or resale of all or part of the token held by other stakeholders shall not in any way prejudice the other owners.
  3. The use of the token by one or other of the stakeholders must not in any way prejudice the other owners. Ideally, simultaneous use of the token by the different owners must be possible.

What Is and What Is Not Fractionable?

Conceptual representation of a video game asset

This state of affairs today represents a limit in the use of NFTs and proves to be in opposition to the idea of decentralization proposed by Blockchain technology.

How Could a F-NFT Be Designed?

NFT versus Fractional NFT asset type examples

What Industries Could a F-NFT Disrupt?

Edgar Degas The Star
Research courtesy of Fred Wilson, CEO of venture capital firm Union Square Ventures

Token economics is needed to give us a clear taxonomy and standards so we have a well defined vocabulary and methods to map the wide array of use cases possible with tokens. We need to understand that different types of tokens raise different economic questions.

-Dr. Shermin Voshmgir, Director, Cryptoeconomics Research Lab @ WU Vienna

A Future Marketplace for F-NFTs?

  • Asset Authentication: Each asset whether it’s a physical piece of art or a high-value digital asset would need to be verified for authenticity. Once verified the record will be placed on-chain for any other party to reference.
  • Fractionalization Smart Contract: This would allow the asset creator and owner to specify the properties or metadata of the token including how many shares to create and ownership details.
  • F-NFT Listing: This function would list the FNFT on the exchange and provide traditional exchange functionality such as order books, matching and selling/buying of the token. It would also provide full transparency and inform owners of the new ownership or rights repartition on the asset.

Conclusion and Next Steps

  • What assets would make the best use-case as an F-NFT and why?
  • What real-world assets cannot be supported as F NFTs?
  • What will be the technical components / characteristics of this new standard (the overall UX of marketplaces, games, and of the assets themselves have to be reconsidered and redesigned for a decentralized use)?



Elijah McClain, George Floyd, Eric Garner, Breonna Taylor, Ahmaud Arbery, Michael Brown, Oscar Grant, Atatiana Jefferson, Tamir Rice, Bettie Jones, Botham Jean

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