October 28, 2021, 10:20PM EDT
• 8 min read

Alternative methods for NFT fractionalization

Quick Take

  • The financial value of NFT fraction (or shard) holders derives from the payout upon eventual reconstitution of the underlying NFTs
  • Inflationary shard mechanisms provide cash flow to existing shard holders via periodic shard auctions
  • Lottery-like mechanisms are the only approaches that enable shards to mathematically reflect the NFT valuation

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