Fractional NFT (Non-Fungible Token) is a concept where the unique ownership of a high-value digital asset, such as a piece of digital artwork or a virtual asset in a game, can be divided into parts or fractions that can be owned by multiple parties separately.

Fractional NFTs allow a high-value NFT to be broken down into smaller, more affordable parts or fractions. Each such fraction represents partial ownership of the original NFT, with the percentage of ownership determined by the number of fractions owned.

This concept allows multiple individuals to share ownership of expensive digital assets, thereby reducing investment risk and opening up opportunities for investors with limited capital to own a portion of high-value assets.

Fractional NFTs can also facilitate higher liquidity within the NFT market, as the fractions can be traded separately on decentralized exchanges. In addition, revenues from the sale or royalties of NFTs can be distributed proportionally to fraction holders using smart contracts.