Product-based blockchain startup dcSpark has announced a new Cardano-based project called Fracada. Its code will be released on Tuesday.
Fracada will allow turning non-fungible tokens into “fractions” with the help of the Plutus programming language.
Fractionalization has become a new trend in the NFT sector since it makes it possible for those who can’t afford the whole thing to get a piece of the action.
In layman’s terms, the process of breaking expensive NFTs into pieces can be compared to splitting up the equity of public companies into a huge number of shares.
However, the owners of F-NFTs shouldn’t expect a return on their investment. Otherwise, token issuers could get in trouble with regulators for not complying with security laws, according to David Carlisle of Ellipti:
Fractionalization starts to raise a number of questions around things like are people participating in the purchase through fractionalization ultimately functioning like an ‘investment syndicate’ where they’re expecting a return on their investment.
As reported by U.Today, dcSpark also recently started developing an Ethereum Virtual Machine-compatible sidechain on the Cardano blockchain.