What is IP-NFT fractionalization?

IP-NFT fractionalization is a method for directly distributing rights to IP-NFTs to groups of token holders such as members of a BioDAO.
A user fractionalizes an IP-NFT by locking that IP-NFT and minting tokens on Ethereum representing fractions of it.

Why fractionalize an IP-NFT?

When a BioDAO such as VitaDAO holds an IP-NFT, the BioDAO members do not have direct exposure to economic upside from the commercialization of the IP, NIPIA, or R&D data rights attached to the IP-NFT because any proceeds from commercialization are returned to the VitaDAO treasury to fund additional longevity research, much like proceeds from IP commercialization out of a university is returned to the university in order to fund further research at the university. Proceeds are not distributed to VitaDAO members because VitaDAO is a non-profit organization.
IP-NFT fractionalization enables people to obtain direct exposure to IP-NFTs through distribution of tokenized rights that apply directly to the IP, NIPIA, and R&D data attached to the IP-NFT.
IP-NFT fractionalization happens through a mixture of legal contracts and smart contracts.
The legal contract for the first phase of fractionalization we are rolling out is the Fractional Asset Member (FAM) agreement.
We tailor built FAM for DeSci as a new asset class enabling novel ways of organizing around IP development. FAM are a team charged with developing an IP Commons from the fractionalized IP-NFT.
In order to fractionalize an IP-NFT, the user must click to agree to the terms of the FAM agreement and then mint FAM tokens from the fractionalization smart contract.
The FAM agreement establishes that FAM token holders are members of IP Commons around the IP-NFT, distributing managerial interests and financial incentives across a group of people, a.k.a. Commoners, FAM in Commons, or just "FAM," attaching the FAM legal contract to the FAM smart contract.
The legal contract for the second phase of fractionalization is the Fair, Reasonable, Ethical, & Non-Discriminatory Sublicense (FRENS).
We tailor built FRENS for to enable novel ways of organizing communities around ethical IP development using fungible tokens called FRENS.
FRENS are still under development.

Fractionalization Smart Contracts

Read about IP-NFT fractionalization smart contracts in Molecule's Github.