As individual NFTs inside certain collections have soared in value, the cost of owning one has put them out of reach for average collectors. To allow more people to participate in a community, some collectors have fractionalized their NFTs.
To accomplish this, they created smart contracts that lock up the original token and divide it’s ownership into a new collection of NFTs. Each NFT in this new collection then represents a small fraction of ownership.
This lets fractional buyers profit from increases in value, or to feel like they’re a part of the project. In some cases, owning a fractionalized NFT even allows access to some of the perks that come with holding the original.
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