Welcome! This guide has four sections:
- Creating Fractions
- Selling Fractions
- Secondary Market
- Best Practices
Any NFT that conforms to the ERC721 standard can be fractionalized.
3. Choose which chain you want to use. Matic is a fast and cheap Layer 2 for Ethereum.
4. Find your NFT(s) on OpenSea, copy the url and paste it in the first field. Press the search button.
5. Enter the following info:
- Is the NFT an artwork? (for artist royalties)
- What will be the name (e.g. "Ethereum") and ticker (e.g. "ETH") of the fractions?
- How many fractions do you want to issue, and how many do you want to keep?
Note that if you want to keep all the fractions to redistribute them yourself later, you need to enter 99% of the Total Amount of Shards in the "Amount of Shards Kept by You" field (NIFTEX reserves 1% by default).
E.g. the total issuance is 1,000,000 fractions - I'm keeping 990,000 because I want to redistribute them.
If you don't keep all fractions, they will be for sale at a fixed price set by you for two weeks.
6. Set the price in the "Valuation" field. The price only matters if you are not keeping all of the fractions. For 99% cases, you can enter anything.
7. Add a Description to introduce your NFT to the public and convince them why they want a fraction of it.
The "Launch Details" and "Buyout Details" fields are fixed values and can be ignored.
8. Tick the box to acknowledge the terms and submit your Launch. You will be asked to pay the submission fee.
If you are using Matic, you will be asked to transfer your NFT into custody at this point.
IMPORTANT: In this first iteration of the platform there is an approval step for us to do the contract deployments and filter for mistakes and quality. We try to deploy launches at a speedy rate but cannot guarantee your Launch will be deployed immediately. We limit launches to a few a day currently.
Selling Fractions at Fixed Price (max. 2 weeks)
9. Once we have deployed the Launch, it will be viewable in Upcoming Launches or, for 99% cases, directly at niftex.com/launch/details/TICKER.
10. Now that the contracts have been deployed, it's time to send the NFT to custody and issue the fractions!
- Navigate to the Launch Details page for your fractions
- Make sure you have verified your email and are logged in to the right wallet
- Click the "Transfer NFT" button to send your NFT to custody. Do not transfer your NFT in any other way.
11. The Status should now change to "Live". Other users can now buy fractions of your NFT at the price you set!
12. Once all fractions are sold or after 2 weeks pass, everyone can claim their fractions. If the fractions sell out you will automatically receive the ETH earned from selling the fractions. Otherwise, you will need click "Close Launch". You will also receive all unsold fractions.
13. Done! Fractions can be found in My Assets, from where you can take a number of actions including transferring them to others.
NOTE: we currently use Uniswap v1. Upgrade planned.
14. NIFTEX will now deploy a market for you and update the Exchange interface so your token will get a chart too. You will be asked to provide liquidity via https://www.niftex.com/exchange to get the market started. Providing liquidity means adding some tokens and some ETH so people can start buying and selling fractions easily. We'll help you with this - more information can also be found here.
The single best practice we know of is to underprice the NFT fractions (extent up to you) in order to get people excited about the launch and potentially encourage some secondary market activity too. Avoid overpricing if you want buyers to show up.
A lot of users also ask how many % of the fractions they should keep - there is no clear right or wrong here, but it's probably a good idea to display a bit of confidence in the NFT by keeping a decent % of it.
When preparing for the launch, make sure to speak to people that could be buyers and get their opinion on your plans, and potentially even some early commitments to take part in the launch.