Everything To Know About F-NFTs And What Makes Them Exciting
Not a day goes by on social media without the word NFT appearing in front of us. Is it a revolution, is it a fad? An overwhelming number of NFTs are digital artworks being sold at very high prices. However, the potential of NFTs can surpass artwork and bring forth a solution that can have a wider financial impact.
NFTs give us a way to uniquely verify the ownership of digital assets such as images, documents, and videos — publicly and transparently. They also eliminate the need for third-party service providers and middlemen to do it for us. The proof of ownership can be verified seamlessly with the original digital asset. It can be done anytime, anywhere, and even after the entity who minted those NFTs no longer exists. That’s literally forever.
Great NFTs often share some strikingly similar properties. They are usually rare, they are created by people who are experts in their field, and they tend to provide financial growth over time. These reasons make such NFTs incredibly expensive and beyond the reach of most people. To ensure we don’t miss out, we often invest in risky low-value NFTs which may never grow. Solving this problem requires a novel idea that opens the same opportunities as expensive NFTs but to a larger population. Our solution is a product that stems from the core concept of an NFT and allows individuals to partly own high-value assets and we are calling it the fractional NFT (F-NFT).
The Need For F-NFTs
A Fractional NFT (F-NFT), is an NFT that represents part-ownership of a high-value asset. Thus, an F-NFT you own would be a certificate for fractional ownership of the underlying asset.
Here’s an analogy to explain this better:
Let’s say there is an organization worth $100 million and they decide to create a total of 10,000 shares of that company. Each share would then be worth $10,000. So a person, let’s call him John, can become a part-owner of this company by purchasing one or more of its shares. As a part-owner, John is now entitled to benefits such as profits or dividends dictated by the number of shares he owns. This way, the shares have opened up opportunities to John and all the other part-owners in dealing with high-value assets.
F-NFTs are doing something similar to what the shares of the company did but it’s also solving another major problem. There is a problem in that, there are certain high-value assets that have no way to allow the existence of part-owners. For example, neither can you partially own an artwork worth millions without forming an enormous group on your own, nor can you partly own a patent that isn’t granted in your name. That is until now…
Democratizing Ownerships through the F-NFT Platform
Voice Life’s solution is an F-NFT platform that is solving two major problems:
- Opening up the opportunity to a wider population to be part-owners of high-value assets.
- Providing a platform to owners of high-value assets to fractionalize their assets through F-NFTs and convert them into a revenue stream for themselves and provide passive income streams for all the other part-owners.
Blockchain and the advent of NFTs has inspired the perfect recipe to create a platform with the potential to benefit everyone within the ecosystem. While NFTs ensure the unique identification of the asset and its owner, the blockchain supplies a transparent trustless system to facilitate transactions at scale.
The platform caters to a variety of use cases. For example, someone might want to sell only a certain percentage of their high-value asset. Here’s an analogy to explain how that can be done:
Jane, an art collector, wants to sell 25% ownership of a painting she owns worth $1 million. Through the F-NFT platform, she mints a thousand F-NFTs, each worth $250, and sells them. Collectively, all the part-owners ( F-NFT holders of Jane’s painting) would now own 25% of the artwork while Jane owns 75%. At the time when the painting gets sold, the part-owners are eligible for 25% of the profits made and it will be shared equally among all the thousand F-NFTs. Jane converted the asset into a revenue stream and the F-NFT holders got a new way to make some profit on a high-value asset.
A Democratized marketplace should also be flexible enough to cater to a wide variety of needs and a wider variety of assets. F-NFTs can not only represent a single asset, but they can also represent a bag of assets as well. A person owning such an F-NFT would be part-owner of the basket as opposed to just a single asset. To demonstrate how this works, let’s look at the first F-NFTs coming into the market, the Voice Life F-NFT.
Leading By Example: The Voice Life F-NFT
Voice Life has 4 granted patents in the US and numerous international patents, derived from these original four patents. These patents are a gateway to license the revolutionary technologies of far-field and near-field wireless charging. Voice Life has decided to sell 15% ownership of these patents through 5000 F-NFTs. Each F-NFT gives a portion of ownership to all their patents packaged as a single asset.
Owning a Voice Life Fractional NFT is equivalent to owning a fractional portion of the Voice Life IP defined by the granted US patents and other derived patents filed globally. As a fractional owner, it makes the F-NFT holder eligible for receiving income from multiple sources such as licensing deals, product royalties, and selling the F-NFTs themselves.
The platform’s role is to allow minting F-NFTs and provide further capabilities (both on-chain and off-chain) to build revenue distribution channels back to each of the part-owners.
The Next Steps
F-NFTs open up a lot of possibilities when it comes to democratizing assets, generating revenue streams, and benefiting from a transparent ecosystem. The Voice Life Platform is a marketplace for not just the Voice Life F-NFTs, but many other companies who want to open up their IPs or other revenue-generating products to a wide population all around the world! Once Voice Life’s F-NFTs will prove this concept, the doors will open to others to incorporate these new ideas into their businesses.
