Azuki NFT collection will conduct a one-of-a-kind experiment with Bobu. To put it briefly, the NFT team will release Bobu factions, that’ll be used as tokens for governance over the NFT.
The Azuki NFT collection will release 20,000 Bobu fractions on March 6th at a price of 0.01 ETH. Additionally, the team is also giving away 50 fractions in their Twitter contest.
What’s Bobu? What is the experiment about? Can everyone participate? We’ll dig into the details one by one.
Azuki NFT collection’s experiment over governance.
Let’s first introduce you to Bobu. Azuki #40 or Bobu is a core character in the Azuki NFT collection. The team will soon deposit Bobu into a fractional.art Vault. This vault will create ERC – 1155 tokens so that all holders of fractions can participate in collective governance over Bobu.
How does fractionalization work?
Firstly, the NFT is placed into a vault. A vault is a smart contract that locks an NFT so no person in the community can sell or transfer it. In other words, no single person owns that NFT.
After the NFT is locked, Vault distributes the “transfer and sell” decision power into fractions. Enthusiasts who wish to participate in governance can purchase these fractions. Therefore, the holders will have the power to vote on what the Vault contact does. Exciting isn’t it?
What does Owning a fraction of Bobu mean?
Holders can firstly join the experiment in decentralized character IP governance. Secondly, they can link their Bobu fractions to their Twitter account for a verified NFT profile picture. Thirdly, owners can sell fractions on OpenSea. Not only this but one Bobu fraction will grant access to closed Discord channels in the Azuki NFT collection’s garden.
This is to note that fractions are not investments. It only allows the owner to participate in the decision-making of the Vault.
Learn more about the examples of governance proposals at the official website. A few weeks back, the Azuki NFT project decided to open-source their smart contract standard, ERC721A.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.