πŸ—³οΈ Governance: Collective Decision Making

Learn how token holders vote on buyouts and asset management

Split expensive NFTs into affordable pieces

πŸ—³οΈ Voting Power & Governance

Owning fraction tokens isn't just about price appreciationβ€”it's about having a voice in decisions affecting the NFT. Token holders vote on key proposals like selling, licensing, displaying, or utilizing the asset. Your voting power is proportional to your token holdings.

🎯 Interactive: Governance Calculator

Adjust your token holdings to see your voting power and explore active proposals.

2,500
12,5005,0007,50010,000
Voting Power
25.00%
Need coalition
Tokens Held
2,500
Out of 10,000 total
Quorum Status
Minority
51% needed to pass

Active Proposals

πŸ’Έ
Sell NFT

Accept $2M offer from collector

passing
In Favor5,200 (52.0%)
Against1,800 (18.0%)
πŸ“‹

If passed, NFT sold and proceeds distributed to all token holders proportionally

πŸ“Š Common Governance Powers

  • β€’Sale Approval: Vote on selling the NFT and distribution
  • β€’Licensing: Approve commercial use rights and terms
  • β€’Display: Authorize exhibitions and public showings
  • β€’Treasury: Manage shared funds from NFT revenue

⚑ Voting Mechanisms

  • β€’Simple Majority: 51%+ votes needed to pass
  • β€’Supermajority: 67%+ for critical decisions (sale)
  • β€’Time-Locked: Voting period (e.g., 7 days) before execution
  • β€’Delegated: Transfer voting power to trusted party

πŸ’‘ Key Insight

Fractional governance creates a DAO (Decentralized Autonomous Organization) around each NFT. Unlike traditional art ownership where one person makes all decisions, fractionalized NFTs democratize control. However, this comes with coordination costsβ€”getting hundreds or thousands of holders to vote takes time. Smart protocols balance efficiency (quick decisions) with decentralization (fair representation) through quorum requirements, voting periods, and weighted voting.

← Fractionalization Process