Secret Feature: Fractionalized Secret NFTs
A new innovation is entering the Secret NFT ecosystem: fractionalization. Learn how this functionality can revolutionize blockchain gaming, collectibles, art, and much more!
Greetings Secret community! Today we're excited to feature a new innovation in the Secret NFT ecosystem: fractionalization.
Secret NFTs have seen a tremendous amount of growth since the beginning of 2022 with over 50+ Secret NFT collections launched. The demand for privacy-preserving NFTs with unique access controls and functionality continues to grow and compound. Using the power of Secret Network, NFT developers all over the world have been challenged to re-invent and reimagine what is possible with NFTs. This creativity has brought demand for even more flexibility with the Secret NFT contract standard with respect to what it can accomplish for builders, artists, and users!
Enter fractionalized Secret NFTs.
A fractional Secret NFT is an NFT that has been divided into smaller fractions, empowering varying numbers of users to claim private ownership of a piece of the same NFT. Fractionalization is a relatively new and revolutionary concept that brings multiple benefits to NFTs.
With fractionalization, Secret NFTs creators and developers will be able to democratize access to high-value NFTs, increase liquidity surrounding the buying and selling of NFTs, empower DAOs to more effectively form around a single unique NFT, and more. Combined with the power of privacy and access controls, fractionalized Secret NFTs will push the frontier and open up a wave of new use cases.
Fractionalized NFT Standard
For fractionalized Secret NFTs to be built, development of a standard across the ecosystem must be built. This standard will provide developers with the specifications and a base contract to use as-is or as a starting point for their applications. A funding proposal to do exactly this was just passed on-chain!
The development of the fractionalized NFT standard is broken down into three milestones:
(1) Ability to fractionalize SNIP-721 tokens
(2) NFT collection and trading fee royalty capabilities upgrade - giving the ability to fractionalize a collection rather than just a single NFT
(3) Cross-chain fractionalized Secret NFTs: bringing privacy-preserving NFTs to other chains
Secret NFTs will be fractionalized using a secret contract that generates a set number of tokens linked to the indivisible original NFT. These fractional tokens give holders a percentage of ownership of the NFT with a variety of unique use cases.
Secret NFT Fractionalization
The potential for fractionalized Secret NFT ownership lowers the barrier of entry and opens up brand new use cases in the world of Secret NFTs. A couple of key advantages of fractionalized Secret NFTs are the following:
Price Discovery - sell fractions of your NFT without needing to sell the entirety of the Secret NFT. Add privacy into this to create unique speculation.
Democratized Investment - lower the barrier of entry for small NFT collectors to participate in the ownership and purchase of rare NFTs
Improved Liquidity - with the ability to fractionalize NFTs, popular collections can enter into much more liquid markets on DEXs due to the fungibility of the fractionalized NFT
And this just scratches the surface. Using the power of secret contracts, the possibilities combining the power of fractionalization and Secret NFTs is endless.
Want to start collecting your own Secret NFTs? Try out Stashh, the first Secret NFT marketplace.
Impact of Fractionalized Secret NFTs
Here are some industries that could conceivably be disrupted with fractionalized Secret NFTs:
Art: Digital Artists and Secret NFT owners can easily break up their NFT into multiple fractionalized NFTs and quickly sell individual privacy-preserving fractionalized NFTs to collectors.
Gaming: Users could sell in-game items such as rare skins, guns, private-metadata (hiding powers, level-ups, lootboxes) and armors through privacy-preserving fractionalized NFTs.
Collectibles: Historically valuable collections (such as Anons) that are difficult for small collectors to purchase could potentially gain access or a piece of ownership of via fractionalization.
The development of a fractionalized Secret NFT standard follows our reveal of Shockwave in early January of 2022. With more products and tools being built, more creators launching on Secret Network, and more supporters and partners than ever helping to ensure our global growth, the future has never been brighter for Web3 privacy.
If you’re a developer, you can also read through our latest announcements re: the new $225M Secret Ecosystem Fund, which contain details on how to connect with the SCRT Labs team and the rest of our developer ecosystem. Additionally, check out Secret Network grants and get started building today!
If you’re anyone who is passionate about ensuring Web3 users have the data privacy protections they need and deserve, become a Secret Agent. It is our mission to make sure the decentralized web we’re building is one that truly empowers - and one that is accessible to all.
Thank you for your support - the Shockwave is just starting! 🤫