1What is a fractional NFT?
With advances in NFT technology, one or more traditional NFTs can now be staked in a "vault" and multiple "fractional NFTs" can serve as ownership of that vault. So holders of the fractional NFTs technically own part of the parent vault and its contents.
2What am I actually buying?
By owning a fractional NFT, you are buying partial ownership in the actual vault and therefore its contents.
If the vault contains a single NFT which represents ownership in a $2M physical painting, then you technically own your fractional share of that painting represented by the master NFT in the vault.
If the vault contains a single NFT which represents ownership in a $2M physical painting, then you technically own your fractional share of that painting represented by the master NFT in the vault.
3What does a fractional NFT look like in my wallet?
The NFT will look almost identical to the original. The fractional NFTs are recognizable by there being a small icon in the corner.
This way, you can show off your NFT from your wallet, a gallery website, or even on a wall-hung digital display just as you would any other NFT.
This way, you can show off your NFT from your wallet, a gallery website, or even on a wall-hung digital display just as you would any other NFT.
4Where can I buy your fractional NFTs?
Each physical work of art that converted into fractional NFTs are sold in two main places: 1) On NFT marketplaces such as OpenSea such as here: https://bit.ly/378GVs4 or 2) On the main MOTELNFT.ART website here: https://motelnft.art/
5What forms of payment are accepted?
If you buy fractional NFTs on OpenSea, you can use any payment method allowed by OpenSea. If instead you choose to buy directly on the MOTELNFT.ART website (and then receive the NFT via air-drop) then you can pay using Coinbase Commerce which allows for a variety of payment options including crypto payments.
6Can I by more than one fraction?
YES! You can buy as many fractional NFTs are you want. The more fractions of a vault you own, the higher % ownership you have in that vault (and therefore also the contents of the vault).
Example: If there are 10,000 fractional NFTs of a particular vault of which you own 5,000 fractions, that means you own 50% of that vault and its contents inside.
Example: If there are 10,000 fractional NFTs of a particular vault of which you own 5,000 fractions, that means you own 50% of that vault and its contents inside.
7Who is the custodian of an NFT vault?
There are no custodians and vaults are fully decentralized, audited smart contracts.
8What is a "reserve price"?
Similar to Ebay and other auction sites, the "reserve price" represents the price (in ETH) required to initiate an auction for a vault and its NFT(s).
In the fractional NFT world, the reserve price is the lowest amount the owner of the parent vault would accept to sell the original, physical panting in exchange for all fractional NFTs returned to the vault.
9What is a "buy out"?
A buyout can happen when there is an external party who deposited ETH that is greater than or equal to the reserve price. This will kick off an auction. At auction completion, the NFT will be withdrawn and fractional owners will be able to trade in their tokens for ETH.
10How is the reserve price set?
The reserve price is set by the weighted average of all ownership token holder votes. If less than 50% of token holders have voted, a reserve price will not be set. Token holders cannot set a reserve price greater or less than 5x the current weighted average.
11What is an auction?
An auction is a public sale of a vault and all its contents, which is triggered when someone deposits and offers an amount of ETH greater than or equal to the vault’s reserve price. The individual offering the highest price at the time the auction completes wins the buyout.
12What happens to fractional owners after a successful auction and buyout?
Once completed, fractional owners are able to trade all their ownership tokens in for the ETH that was deposited by the auction winner on a pro rata basis. The ownership tokens that are traded in for the ETH are then burned by governance.
13Where are the physical paintings stored and secured?
Each original work of art that is fractionalized and sold as NFTs by MOTELNFT is stored on-site at the physical gallery located in Aventura, FL (near Miami).
This is an established, high-respected art gallery that has been in business in the same location for over 25 years. All artwork on-premise is fully insured against loss, theft, flood, and natural disasters.
This is an established, high-respected art gallery that has been in business in the same location for over 25 years. All artwork on-premise is fully insured against loss, theft, flood, and natural disasters.