https://totemfi.com/defi-nfts-web3/what-is-fractional-nft-zkz6N/ TotemFi.com Discussion Board - cryptocurrencies, investing en-US Fri, 15 May 2026 14:20:43 +0000 wpForo 60 https://totemfi.com/defi-nfts-web3/what-is-fractional-nft-zkz6N/#post-389 Thu, 14 May 2026 22:24:27 +0000 My Current Understanding vs. The Roadblocks

Protocol Concept	My Assumption	The Glaring Roadblock
Vault Creation	Lock one JPEG, mint 10,000 ERC-20s.	Who actually determines the initial market cap at launch?
Voting Rights	Token holders vote on a reserve buyout price.	What if 40% of the holders just lose their keys and never vote?
The Buyout	Someone bids above the reserve, triggering an auction.	Do I just get wrapped ETH automatically pushed into my wallet?

Before I throw some spare gwei at a fraction of an ape just for the meme, I really need someone to poke holes in my logic. If a buyout ultimately succeeds, those ERC-20 shards become completely worthless the second the underlying asset gets unlocked by the winning bidder, right? Help me out here. I feel like I am missing a critical step regarding how the exit liquidity is practically managed.]]> DeFi, NFTs & Web3 etheruser https://totemfi.com/defi-nfts-web3/what-is-fractional-nft-zkz6N/#post-389