Fraktionalizing an NFT (and yes we are using the right spelling) is a process of locking up an asset in a digital vault and tokenizing it for distribution. In easier terms, it's a way to give people a virtual piece of an immutable product. It’s better to learn by doing though, so let’s head to https://www.frakt.xyz/ and start this off right away!
How do I fraktionalize an NFT?
First, we’ll hit "Connect wallet" in the top right corner and select our preferred wallet.
Once this is done, hit the purple “Fraktionalize” button in the top right corner.
The next screen shows all the NFTs that are in your wallet, if you know the name of that NFT, you can search for it for easier access. In our example, we’ll select the Lisbon Monke Business to be up for fraktionalization.
The next screen contains information about the Vault. This is where your NFT will reside until it’s purchased and redeemed. We set a few variables here:
Supply - how many tokens you want to create, linked to your NFT [current limit: between 1,000 and 100,000]
Ticker - symbol of your tokens, which is max. 4 characters at the moment
Buyout price - once your NFT is locked in a vault, the only way to get it out is for someone to purchase it at the buyout price set
In this case, 100 SOL buyout would mean that each FREN token someone holds would be redeemable for 0.01 SOL per token on the website.
After validating your variables, approve the next two transactions through your wallet to finalize the fraktionalization of the NFT! That's it!
Right now this is how the tokens shows up in Phantom.
IMPORTANT: If you want your fraktions to be tradable (to sell fraktions), you need to create a Serum market, which is doable via our platform right after fraktionalizing your NFT, or at a DEX.
We also encourage you to create a liquidity pool for this market at Raydium to unlock the swaps functionality. The best approach is to provide liquidity for token at the same price as fraktions valued in vault.