Read this to understand why we are excited about the launch of Unicly V2 and how it will revolutionise the NFT space.
28 Mar 2022, 13:54
Read this to understand why we are excited about the launch of Unicly V2 and how it will revolutionise the NFT space.
1/5 - Existing problems in NFT fractionalization:
There have been a couple early efforts to fractionalize NFTs. The following are the main issues that could be identified:
1-Sharding single NFTs instead of collections
2-Un-fractionalization
2/5 - How Unicly v2 works
The Unicly protocol improves upon the above issues through the following key attributes
Multiple NFTs (ERC-721 and/or ERC-1155s) can be put in vaults and fractionalized into fungible ERC-20 tokens. NFTs within vaults can be un-fractionalized individually
3/5 - This happens when someone bids above the "trigger price", which is set by the vault creator. When a trigger price is bid, it kicks off an auction.
Every NFT within a sharded collection is treated as a unique, irreplaceable item.
4/5 - Collectors can bid for specific NFTs rather than entire collections. All fractions are treated equally.
When an NFT is auctioned off, the proceeds (in ETH) go back into the vault. Fraction holders are entitled to their pro-rata shares of these proceeds.
5/5 - Fractions are burnable, and holders can exit any time with their cut of the ETH in the vault. Nobody can be held hostage.
Contributors of the best NFT collections are incentivized through whitelisting, which allows them to earn the UNIC token in rewards.
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