The developers of an NFT-focused blockchain platform have proposed fractionalizing high-value non-fungible tokens to make them more accessible and interoperable across chains.
Unique Network, a blockchain platform focused on NFTs, has proposed to split Cryptopunk #3042, acquired by the platform last July, as part of its strategy to democratize access to these digital assets.
On its Twitter account, the Polkadot blockchain-based platform has pointed out that fractionalizing high-value NFTs, such as Cryptopunks, will allow more people to access these digital assets, through shared ownership. It will also promote the interoperability of these digital assets across chains.
Although Cryptopunks are considered pioneers of the modern Crypto Art movement as one of the first NFT collections in the industry, their high value has made them inaccessible to much of the crypto community.
Initially, the company that developed this crypto collection, Larva Labs, distributed these NFTs for free among Ethereum users. Today, these digital assets They sell for an average price of 67 ETH (about $118.900, currently), according to data from the Opensea market.
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Cryptopunk #3042, broken into thousands of pieces
Currently, over 56.000 addresses have signed up to Unique Network's plan to split ownership of Cryptopunk #3042. However, the platform previously reported that this NFT will split its ownership into about 100.000 parts, in order to restore accessibility to the project.
The split of this CryptoPunk will be a demonstration of whether there is an interoperable, sustainable and lower-cost solution for NFT projects on Web3, the platform had pointed out.
In its Q&A section, Unique Network explained that owners of Cryptopunk #3042 will be able to display, sell and transfer their part or fraction of the NFT. In addition, they will be able to use the punk's image as a profile photo and even use it for commercial purposes, according to the terms and conditions of use.
What does the SEC think about fractional NFTs?
The idea put forward by Unique Network to democratize access to digital assets through the fractionation of NFTs may entail some risk, according to SEC Commissioner Hester Peirce.
In March of this year, Peirce warned that The sale of fractional NFTs could be violating US securities laws, under the watchful eye of the United States Securities and Exchange Commission (SEC).
Peirce, who is considered one of the most cryptocurrency-friendly people in the industry and is known as the “Crypto Mom,” explained that companies creating fractional NFTs to facilitate investors’ access to high-value assets could also be creating security-like investment products.
New standard for NFT rentals
Another proposal focused on expanding the utility of NFTs while lowering the barrier to entry into the crypto world is the ERC-4907 standard presented by the Double Protocol.
At the end of June, the developers of this protocol presented the ERC-4907 standard to allow holders of these digital assets rent out your non-fungible tokens to other users, who will have the possibility of using the asset in different environments temporarily, without needing to buy or own it.
The new standard, ERC-4907, separates the roles of “owner” and “user” of NFTs, so that the user has the possibility of using the NFT in video game and metaverse environments, while the owner will be the one who maintains control over the digital asset.
As we can see, these initiatives are focused on increasing and democratizing access to NFTs and the crypto industry in general.
Continue reading: Tiffany & Co's NFT collection sends CryptoPunk prices soaring
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