After issuing or wrapping an asset, a token can be split into smaller pieces or fractions. This makes the wrapped asset(s) more accessible.

For instance, only 1 wallet can own an NFT, but wrapping and distributing fractions allows many wallets owning a piece of the NFT.

This process, fractionalization, enables the issuer to split wrapped assets into smaller units deploying a new token contract that represent a fraction of the wrapped assets.

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Fractions make assets more accessible, enhancing liquidity.

Process

Fractionalization enables multiple parties to own and trade one or many fractions of its underlying assets.

1. First, we define which tokens are to be split into fractions.
2. Then we define the token contract that will represent the fractions:
   1. standard (as below)
   2. amount of token
   3. name of the contract
3. Finally, once distributed and vested, a fraction token is exchanged for a wrapped fungible asset.

Standards

Fraction tokens can be issued in the 3 conventional EVM token standards