The world of NFT has experienced an explosion in recently. We are also familiar with some NFTs selling for exorbitant prices. I have noticed a serious desire, from the broader community, to own a fraction of such NFTs.
In the traditional art market there are ways in which fraction ownership of physical art is achieved. The most common way is
- Create a Pvt. Ltd or an LLP company that owns the painting and then sell shares in the company and trade them on specialised exchanges.
For NFTs there are organisations that follow a similar approach. They draw up a smart contract that owns the NFT and gives out fungible tokens for fractional ownership and DAO voting rights.
This approach works but it is not standardised and different contracts sometimes come up with creative deflationary conditions that’s hard to track for first time buyers. It can also result in SCAMS.
I propose to collaborate and create a Standard that allows artist to easily, put up their NFT into a smart contract, fractionalise it and create a DAO token for the bidders.
Considering the future of Virtual Worlds and the essential roles of NFT in this virtual world it is essential to allow fractional ownership of digital art. Fractional ownership will also allow creators to licence and distribute content over internet without fear of piracy. For example. Artists can sell fractional NFT to their album freely accessible online, requiring to prove ownership of a fraction to play the album.