Fractions, how do they work?
The NIFTEX protocol creates ERC20s in return for NFTs. These ERC20s are referred to as "fractions" and more informally "Shards".

Fractionalization Lifecycle

At a high level, the NIFTEX fraction lifecycle comprises the following steps:
  1. 1.
    Setting up the fractionalization through a frontend (e.g. via;
  2. 2.
    Transferring the NFTs into custody;
  3. 3.
    Distribution of the fractions via a sale or other methods;
  4. 4.
    Various applications of fractions, such as trading and governance of NFTs with rights or NFT baskets;
  5. 5.
    Recovery of the NFT via various methods, usually a "buyout".

Core Elements

  • NIFTEX v2 aims to be a permissionless on-chain service, meaning users will not depend on a centralized entity at any step in the lifecycle. The website at is maintained by the NIFTEX team and can be fully replaced by alternatives.
  • NIFTEX v2 uses modules in order to ensure flexibility and extensibility as fractional ownership continues to evolve in the NFT space.
  • NIFTEX v2 uses a custom bonding curve to provide optimal market conditions for NFT fractions.
Last modified 8mo ago