1.3 Fragmentation & Subscription
The total amount of shards generated for each NFT is fixed at 10,000 on the ShardingDAO protocol.
- 1.An NFT owner generates a certain number of shards from the NFT he owns and sets the Shard Name and Shard Symbol (ERC20 Token requirements), Booking Token Symbol (any ERC20 Token), and Minimum Subscription Amount.
- 2.Then the shards will enter the Marketplace for subscription, which lasts for 7 days by default. During this period, intended purchasers can stake or redeem cryptos in the first 5 days, while the last 2 days are only for redemption. If the Minimum Subscription Amount is not reached within 7 days, the subscription will fail, and so will the securitization. In this case, a user needs to redeem the staked cryptos manually.
- 3.Upon successful subscription, the Protocol deducts a subscription fee equivalent to 5% of the shards' total value (Shard Price Shard Amount 5%). The remaining subscription income belongs to the shards' creator, and he or she needs to collect the cryptos manually.
- 4.And then, 90% of the shards will be distributed to the subscribers on a pro-rata basis, while the original owner and the Protocol will each retain 5% of the total shards issued.
Last modified 2yr ago