Fractional NFTs allow NFT collectors and owners to hold a fraction of an NFT, resulting in a smaller microeconomy of fractionalized digital assets.
NFTs can be difficult to understand. Blockchain tech itself makes for some pretty dense reading material after all, and the idea of digital asset ownership — especially when art is concerned — definitely doesn’t help simplify things. But if there was any subsection of NFTs that should (in theory) make more sense than any other, that would surely be fractional NFTs.
Fractional ownership is an investment approach that has been around for decades. With fractional ownership, the cost of an asset is split up into fractions and is shared between individual investors — a.k.a shareholders. Of course, fractional ownership can apply to almost any shared asset, be it a private jet, a single share of a company, or even NFTs.
Fractional NFTs allow NFT collectors and owners to hold a fraction of an NFT, resulting in a smaller microeconomy of fractionalized digital assets. A diverse range of interesting (and occasionally bizarre) use cases may be found within this rapidly expanding microeconomy.
When it comes to fractional NFTs, the positive almost always exceeds the bad in the long run. Fractional NFTs, at their heart, allow you to buy and possess a portion of an NFT. This enables users who have been priced out of collections in the past to become partial owners of NFTs from well-known projects such as Bored Apes and CryptoPunks, to Autoglyphs and beyond.
NFT owners can give their fractional tokens a name, supply, symbol, and more using popular services like Fractional Art. When an NFT is fractionalized, it essentially becomes a tradeable token whose value is directly linked to that of its parent NFT.
Fractional NFTs have been beneficial for philanthropy in addition to fractionalizing fine art and pricey PFP NFTs. UkraineDAO has held an NFT auction to collect funds for the humanitarian crisis in Ukraine. The auction was held on PartyBid (a platform that allows users to crowdfund to bid on NFTs), and the NFT was fractionalized by Fractional Art shortly after it sold. Fractional NFT platforms like Fractional Art, NIFTEX, NFTfy, and others will likely represent the value of fractional NFTs in the future.
What’s strange about fractional NFTs? They open the door to a wide range of applications that both mirror and surpass the peculiarities of CrypoDickbutts and Ether Rocks. In early 2021, the aforementioned Fractional Art definitely paved the way for fractional NFTs, and many other comparable marketplace ventures have since followed suit.
Dank Bank is an example of an enterprise that is both plainly strange and ostensibly sensible. Dank Bank is a new marketplace that lets users to trade and accumulate fractionals of memes and other important events in internet history. It began in March 2022. Memes have evolved into more than just a simple and entertaining way to convey a communal sense of humour over time.
They’ve evolved into cultural knowledge units and a means of sharing and disseminating cultural information rapidly and effectively. As a result, memes have become a significant part of internet culture. Given the number of influential memes that have been minted and sold on the blockchain in the last year, it appears like Dank Bank has merely expanded on the idea of memes having their own portion of the NFT market. Is this strange? Definitely. But it also demonstrates the value of common culture in the digital age. And the internet age is proving to be an era in which renowned meme makers may fractionalize and monetize their intellectual property in a way that benefits collectors and artists.