Fractional NFT
Also known as: Fractionalized NFT, Shared NFT Ownership, NFT Tokenization
A method of dividing ownership of a single NFT into multiple fungible parts, enabling shared ownership and liquidity.
A fractional NFT is a single non-fungible token that has been split into multiple fungible ERC-20 tokens, allowing multiple users to hold a share of the asset. This concept enhances liquidity and accessibility for high-value NFTs, such as rare digital art or collectibles. Fractionalization is managed via smart contracts that lock the NFT and issue fractional tokens representing ownership stakes. Holders may vote on selling the NFT, redeem tokens, or trade them on DeFi platforms. While it democratizes NFT investment, it raises legal and regulatory questions around securities classification.