# Incentives for fractionalization and benefits

An NFT owner may seek to divide their assets for various reasons. Costing:- Because the asset is so valuable, you require assistance with pricing. An important tool for figuring out how the market values NFT is disassembling the item and selling it.&#x20;

Liquidity:- Compared to if they had owned the NFT, the owners enjoy considerably superior outgoing liquidity. Custodian fees:- Although the NFT owner sets these fees, the government controls them so that excessive fees are not permitted. Asset management costs are comparable to conservator fees. A curator is paid a portion of the faction's annual supply. Their NFT will gain access to these traits.&#x20;

Owner benefits:- Once a user has fractional ownership in an NFT, they are entitled to vote on the asset's floor price. The amount in ETH that a third party must offer to launch an auction for the entire NFT is known as the reserve price. A new fractional ownership token collector's reserve price will initially be the current reserve price, but it could alter at any time. All fractional holders may get pro-rata payments for their fractions following the conclusion of a profitable auction. Factions are always valid, functional ERC-20 tokens and can be utilized as such.


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