Fruit Ninja of Today: a Review of Sliced.art

Fruit Ninja of Today: a Review of Sliced.art

Last week the Crunchy Network team announced the launch of their NFT slicing service on Tezos - Sliced.art

In this post, we explain what it means to “slice NFTs” on Sliced.art, why it’s needed, and why it will benefit artists, collectors, and speculators.

What Are Sliced NFTs and Why It’s Cool

Let’s say Alice read our article about zancan collections and wanted to have the same flowers in her purse, not just on Instagram. The problem is that the cost of his work goes up to 500,000 tez. As a result, Alice and other aspiring collectors can’t buy the token and its current owner can’t sell it quickly.

This is what fractional NFTs are for. These are non-interchangeable tokens that are obtained by “slicing” the original asset. They represent partial ownership of the tokenised asset in the same way that shares represent ownership of a public company. Yet, NFT tokens have different objectives:

  • the owner of an expensive token can sell some part of it, gain liquidity and still keep some of the asset;
  • a collector can buy a part of a popular NFT for a small amount of money;
  • the liquidity of the NFT market increases because the value of the fragments is lower and more people can afford them;
  • artists don’t need to mince NFTs with runs of 5, 10 or 100 of the same tokens. With slicing, they can create completely unique (1/1) tokens, and still sell them to a large number of people who want them.

In addition to art, fractional NFTs can be used in games and metaverses for sharing expensive items or investing in the manner of ETFs.

How to Fraction NFTs on Sliced.art

On its Medium page, the platform team showed how NFT slicing will take place. In a nutshell, the owner simply needs to specify the number and the price of the slices, and then mint them.

The original NFT will remain on the platform after slicing, as the fragments only represent it, not replace it. Fragment holders will be able to set the price to redeem it through a vote. As with public companies, the more slices a user holds, the more their vote weighs.

When redeeming a previously sliced NFT, the buyer will receive it in their wallet and the creator of the token will receive a royalty on the sale. The holders of the slices will be able to “give” them back and burn them to get their share from the sale. Again, just like with shares.

Once sliced, NFT slices will automatically be offered for sale on the built-in marketplace Sliced.art, but holders will be able to resell them on other marketplaces like OBJKT.

Are Sliced NFTs Popular on Other Blockchains?

A good example of selling NFT by the slice is Doge NFT. In 2021, the PleasrDAO community raised $4 million to buy back the tokenized Doge meme. The holders then sliced the original NFT into millions of slices with the ticker DOG and began selling them for $1. DOG is now capitalized at $16 million, which means the holders of the slices made a 300% profit.

All in all, NFT fractionalization is popular and is garnering attention. This includes the attention of regulators because fractional NFTs can be regarded as securities.

Conclusion

Although fractionated non-interchangeable tokens could be subject to strict regulation in the future, right now the technology has a lot of upsides. We hope that the Sliced.art marketplace on Tezos will launch as soon as possible.

And we will keep an eye on the development of the project and wait for the addition of secondary sales features for NFT slices.

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