Fractionalization & Exit Price
The Fractionalization process happens in a totally decentralized and software-guaranteed way. It is a simple procedure that only requires the user to set the cryptocurrency and value of the Exit Price. The Exit Price is a simple rule that represents the maximum amount that someone needs to pay to Redeem the NFT. After that, the NFT is staked in the Smart Contract and the ERC20-compliant Fractions are generated.
Let's suppose that you own a digital art piece and you would like to Fractionalize it using Nftfy. You will be able to set any value as the Exit Price of your NFT and there might be many different views on how to choose it. You can set it at an extremely high price, expecting that someone pays that one day, or at a reasonable one, if you are willing to monetize it in a faster way. In the meanwhile, everyone will be speculating these Fractions in the open market, and once someone is interested in purchasing the whole NFT for him/herself, this person just needs to pay the Exit Price to Redeem the NFT.
Last modified 8mo ago
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