1.3 Fragmentation & Subscription

The total amount of shards generated for each NFT is fixed at 10,000 on the ShardingDAO protocol.

Fragmentation and Subscription Process

  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.