GlossaryIntermediate
NFT Vault
The smart contract that locks an NFT in custody while fraction tokens representing its ownership circulate.
An NFT vault is the smart contract used in NFT fractionalization that holds a specific NFT in custody, while a corresponding set of fraction tokens representing proportional ownership circulate separately.
The vault typically only releases the underlying NFT once a buyout threshold defined by the fractionalization contract has actually been met.
Examples
- An NFT vault holds the real NFT while its fraction tokens trade independently.
- A vault generally only releases its NFT after a successful buyout.