Product-based blockchain startup dcSpark has announced a new Cardano-based project called Fracada.
Fracada will allow to turn unforgeable tokens into “fractions” with the help of the Plutus programming language.
Fractionalization has become a new trend in the NFT space, as it makes it possible for those who can’t afford the whole thing to get a piece of the pie.
In layman’s terms, the process of breaking an expensive NFT into pieces can be compared to breaking the equity of a public company into a large number of shares.
However, owners of F-NFTs shouldn’t expect a return on their investment, says Ellipti’s David Carlisle, or else token issuers could get in trouble with regulators for not complying with securities laws.
Fractionalization is starting to raise questions, such as whether people who participate in purchases through fractionalization end up operating like an “investment syndicate” that expects a return on their investment.
dcSpark has also recently started developing a sidechain on the Cardano blockchain that is compatible with the Ethereum virtual machine.