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# Fractionalized NFTs

# What is NFT fractionalization?

NFT Fractionalization is the process of dividing ownership of a single NFT into multiple smaller parts, allowing multiple people to own a share of it. This makes expensive or highly valuable NFTs more accessible to a wider audience, as buyers can purchase fractions (or tokens) representing partial ownership instead of buying the entire NFT.

# How Does NFT Fractionalization Work?

  1. Locking the NFT: The original NFT is locked in a smart contract.

  2. Creating Fractions: The contract mints fungible tokens representing ownership shares of the NFT.

  3. Trading Fractions: These tokens can then be traded using Superbolt Liquidity Pools.

  4. Reunification (Optional): If one party buys enough fractions, they can reclaim full NFTs from the Particle Accelerator.

Superbolt Fractionalization
Superbolt Fractionalization

# Why Fractionalize an NFT?

  • Accessibility: Allows more people to invest in expensive NFTs.
  • Liquidity: Users can provide liquidity to the LP to earn rewards.
  • Tradability: Fractionalized NFTs can be traded easily, unlike whole NFTs, which might take longer to sell.
  • Community Ownership: A group of people can collectively own and benefit from an NFT.
  • Price Discovery: Market-driven pricing as fractions trade freely.

# How to fractionalise an NFT

The Superbolt Particle Accelerator allows NFT holders to exchange NFTs for particles. The user locks their NFT in the Particle Accelerator Smart Contract and receives either a fixed or variable number of fractions in return.

The algorithm used is determined by the NFT collection creator. Either:

  • Fixed number of fractions for each NFT in the collection
  • Variable number of fractions for NFTs based upon rarity

# Trading and recombining fractions

Superbolt provides a seamless fractionalized NFT trading experience. The default view on the Marketplace will display both listed NFTs and fractionalized NFTs in the UI. Selecting to view only Marketplace listed NFTs or only fraztionalized NFTs will also be possible.