Ruggable-Fractions: a new way to co-own NFTs.

“Fractionalizing” an NFT means to split ownership among multiple parties. Typically a coin is used to account for who owns how much. So, for example, if Bob owns 20% of CoinZ, and Coin-Z represents ownership of an NFT-Z, Bob owns 20% of NFT-Z. The distribution of Coin-Z is transparent (public) on the blockchain.

REDEMPTION

Redemption is where the rubber hits the road; a robust, functional, & decentralized redemption mechanism is required to support the value of Coin-Z, the value of Coin-Z is only ‘tied’ to the value of NFT-Z if the coin can be used to capture that NFT. A counter-example is $WHALE, which is purportedly backed by “400,000” NFTs, yet the value is low because there is no mechanism to redeem the NFTs with the $WHALE coin.

I’ve created fractionalized NFT’s that were later redeemed on two different platforms: Niftex.com ($MAXX, $ROBX) & Fractional.art ($ROBNESS). The main drawbacks are:

(1) Niftex was the first major fractionalization platform, but it’s now defunct, out-of-business. The contracts can only be accessed online through cloudflare-ipfs.com (there is no longer a niftex.com). Their twitter is still somewhat active.

(2) Fractional.art has largely replaced Niftex as the leader in NFT-fractions. Fractional has a much more user-friendly website, especially for users newer to web3. Before describing the issues that are solved by Ruggable-Fractions, it is important to be clear that no one gets rugged with Fractional’s…