Creating Multifunctional Fractionalized NFTs

The Complete Guide to Creating Multifunctional Fractionalized NFTs

NFTs are a huge hit right now and will only get bigger in the coming years. Many entrepreneurs from various industries have been enticed to invest in the NFT sector. However, some collections will be extremely valuable, making owning a single NFT prohibitively expensive. Fractionalization is an excellent solution to this issue. NFTs that have been broken down into smaller fractions to make them more accessible to the masses are known as "fractionalized NFTs." The popularity of multi-functional fractionalization NFTs is growing these days, and if you want to learn more about them, this blog is perfect for you. The crypto community swoops down on a fresh NFTs trend every few weeks. Fractionalized NFTs (FNFTs) are extremely popular right now. Let's explore the topic.

What is a Fractionalized NFT?

To put it simply, a fractional NFT is an NFT that has been divided into smaller fractions, allowing multiple parties to claim ownership of various portions of the same NFT. The fractional tokens, which can be traded or exchanged on secondary markets, will grant each token holder a portion of ownership in NFT.

How do fractionalized NFTs work?

Large digital artworks or collections of artwork can be divided into smaller parts or pieces using fractionalized NFTs. Then, various owners can receive different portions of these fractionalized pieces. This makes it possible for anyone to acquire a portion of ownership in a work or collection that would ordinarily be too costly or substantial for one person to buy outright.

Tokenizing the artwork into multiple pieces, each of which represents a portion of the original asset, is how the fractionalization process operates. These items are supported by blockchain technology and are stored on the Ethereum network. Every time a piece is purchased or sold, it is verified and tracked using secure smart contracts, which assure that its ownership status is accurate and up-to-date. and it is also distributed fairly among owners.

Steps to Create a Multifunctional Fractionalized NFT

1. Determine which use cases you want to create a fractionalized NFT for. Consider whether it will be used on multiple exchanges as a digital collectible, a token of ownership, or a tradable investment instrument.

2. Pick a blockchain platform and write smart contract code to manage your fractionalized NFT transactions and lifecycle events.

3. Build the infrastructure required to support your fractionalized NFT environment (NFT Marketplace, e-commerce platform, asset tracking system, etc.). This should include the processes for creating and minting new tokens, as well as the rights and restrictions that go with them.

4. Combine the backend code and the frontend interface. This includes creating visuals for users to interact with as well as designing the user experience. Depending on your use cases, you may want to include additional features such as authentication systems or payment gateways.

5. Use test cases to validate your fractionalized NFT platform and ensure that all functionalities are operational before putting it into production.

6. Market your product to potential users so that they are aware of its existence and understand how to properly use it. Make sure that there is a clear incentive structure in place that rewards participants for their contributions and encourages them to participate in platform activities.

7. After launch, monitor and manage the performance of your fractionalized NFT, ensuring that any issues or disputes are handled efficiently and promptly.

Are fractionalized NFTs important?

To help you understand the importance of fractionalization NFTs in the NFT market, there is a list of some amazing benefits of fractional NFTs.

Reduces the risks associated with NFT investment.

Allows creators to reap the benefits of increased exposure in a highly liquid fractionalized NFT market.

Capability to determine the best NFT price based on market demand.

Allows a wide range of interested buyers to purchase a share of their desired NFTs without hardship.

The Benefits of Fractionalized NFTs

One of the most appealing aspects of NFTs is that they allow you to own unique items. However, the element of exclusive nft fractional ownership is also one of the primary reasons for their ever-increasing prices. Fractional NFTs are intended to address this issue while also providing other significant benefits, such as:


Rising NFT prices have driven many prospective buyers away from the market. The fractionalization of an NFT allows a broader range of interested buyers to gain access to it, allowing them to purchase shares of their favorite NFTs as an investment or as a gift to others.

Price determination

It is difficult to determine the correct price for an NFT, especially when no transaction history is available. After fractionalizing an NFT, its components are made available for bidding by multiple investors, which helps in determining the best price based on market demand.

Greater liquidity

Due to their high price, expensive NFTs frequently remain on the market for a longer period of time before being sold. The fractionalization process divides such NFTs into tiny, affordable fractions that can be purchased on secondary markets by a large number of investors. It lowers the risks of NFT investment, and even expensive NFTs tend to sell out quickly.

Better for creators

While all of the preceding points are about the buyer's experience, NFT fractionalization is also extremely beneficial to creators because it allows them to gain greater exposure in the highly liquid F-NFT market.

The Popular Fractionalized NFTs

As all kinds of NFTs can be fractionalized, many people have done so in order to ensure faster sales. Since many NFTs have been fractionalized, it is impossible to create an exhaustive list of all the titles. The following list only includes the top fractionalized non-fungible tokens on the market.


CryptoPunks are among the most expensive NFTs on the market, with some of them selling for millions of dollars. They are extremely popular despite their high price. Surprisingly, after being fractionalized in 2021, they became even more appealing to investors. There are currently fifty CryptoPunks in fractionalized form, with 250,000 million ERC-20 tokens created from them. These fractions were originally priced at US$0.05 per unit, but are now priced at US$0.07779 per fractional share.

Mutant cats

Mutant Cats is a collection of 9,999 artworks created algorithmically in the CryptoPunk style. You can purchase a complete NFT from the collection or a fraction of it on the OpenSea marketplace. It's worth noting that purchasing any Mutant Cats NFT gives you voting rights in the ecosystem.What else? Shares can be staked in exchange for $fish tokens.

Grimes's popular NFT art pieces

Grimes is one of the most well-known artists to benefit greatly from the fractional NFT trend. She has reportedly earned $6 million for her artwork. Her most recent works, Newborn 1 and 3, have been fractionalized at Otis, one of the leading NFT marketplaces.

Doge meme token

After purchasing the popular Doge meme non-fungible token for $4,000,000, the owner fractionalized it into nearly 17 billion $DOG tokens. 20% of the supply created was sold to 1,796 buyers on the MISO marketplace for close to US$45 million. The remainder were sent to Uniswap or Sushiswap.

Multifunctional Fractionalized NFT Use cases

Fractionalizonal NFTs are an excellent way to gain exposure to the NFT market. However, that is not the only role that fractionalized NFTs play; they also have a variety of real-world applications that make them even more valuable. Let's look at some industry-level use cases of fractionalized NFTs to get a better understanding of their real-world applications.

1. Gameplay using fractionalized NFTs

Unlike other types of crypto games, play-to-earn games allow players to earn, buy, sell, and even gift in-game digital assets. The vast majority of these assets are non-fungible tokens. Multiplayer games with NFTs, such as Star Atlas and Axie Infinity, use this technology to allow players to band together and purchase more expensive items.

2. NFTs with fractionalized metaverse

NFTs have already simplified the acquisition of virtual real estate and other digital assets in the metaverse. Furthermore, since non-fungible tokens are based on smart contracts, they simplify ownership management by handling payment distributions, royalties, and the transfer of legal ownership rights. Interestingly, with the advent of fractionalized NFTs, purchasing and selling digital assets within the metaverse has become even easier. Users can now buy and sell NFTs that have been divided into several pieces, each representing a portion of an asset.

3. Real estate and fractionalized NFTs

Real estate investments frequently generate large returns in a shorter amount of time. However, in this day and age, purchasing any property requires a significant amount of upfront capital, which means that only a small number of people can invest in the real estate sector. This is a problem that NFT fractionalization seeks to address by selling fractional shares of real estate NFTs, making real estate investment more affordable.

4. Fractionalized NFTs and the art space

Popular artists' works are frequently sold at high cost. Artists who are not well-known, on the other hand, struggle to make a living selling their art. NFTs have played a significant role in assisting such artists in making a living by selling exclusive rights to their creations. The good news is that the situation is improving with the advent of fractionalized NFTs. Even small investors can now invest in expensive art, and creators can reap significant rewards when their works are sold.

5. Fractionalized NFTs in music

Musicians are discovering hidden value in the NFT space by using fractionalized NFTs. This is a win-win situation for both the artists and their fans. Many artists have begun selling royalty shares to their fans, giving each of them the right to a percentage of all royalties from future album sales.

How Fractionalized NFTs Help the Business

Create Revenue

Improve Liquidity

Create Exclusiveness

Raise Funding

Closing Thoughts

In the rapidly evolving and ever-changing world of NFTs, fractionalized NFTs are clearly a revolutionary concept. Rather than allowing only a few people to own and manage valuable digital assets, fractionalized NFTs allow the entire community to benefit. So, if you want to make a fractionalized NFT, keep this blog in mind.


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About Author

Yokesh Sankar

I am Yokesh Sankar. Co-Founder of BlockchainX, My vision and time to offer the best products for our clients without apprehensions at economic rates.



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