Original Title: "Flooring Protocol: A New Mechanism to Lower the Barrier of Entry for NFTs and Increase Liquidity"

Original Author: WaTell

Here's a brief introduction to the popular Flooring Protocol in the encryption industry. After reading this article, you will have a basic understanding of it.

Project Vision:

Flooring Protocol hopes to lower the barrier of entry for the general public to enter the NFT ecosystem and increase the liquidity of NFTs through "NFT fractionalization".

Project Mechanism:

The goal of Flooring Protocol is to list homogeneous tokens representing NFT projects, such as μToken, on top centralized cryptocurrency exchanges like Binance.

Here's a simple example. In the future, you may see tokens such as μAzuki and μBAYC in Cex, which are roughly equivalent to one-click issuance of tokens for project teams.

How to obtain μToken?

Each NFT is equivalent to 1 million corresponding project μTokens;

Users can fragment their NFTs in two ways - 1. Vault, 2. Safeboxes.

它们的区别是？

The difference between them is?

After a user deposits an NFT into the Vault, they are essentially relinquishing ownership and the NFT will enter the treasury of the Flooring Protocol. However, the user can immediately obtain convenient liquidity in the form of 1 million μTokens.

After users deposit NFTs into Safeboxes, they will not give up ownership, but they need to regularly pay $FLC as insurance. Afterwards, users can not only obtain convenient liquidity of 1 million μTokens, but also receive a unique Safebox key that can verify ownership.

It is worth mentioning that the keys of Safeboxes can be auctioned or traded.

What is μToken?

Similar to conventional "NFT fragmentation tools", but they often generate "Erc 1155", while Flooring Protocol generates "Erc 20";

Each μToken is actually one millionth fragment of the NFT, but because they are Erc20 tokens, you can freely exchange them for ETH, USDT and other tokens.

Each µ-Token is associated with a specific NFT project, meaning that µBAYC is different from µAzuki, and each token can only represent partial ownership in its corresponding project.

Can fragmented NFTs be recovered?

Users can exchange NFTs in the corresponding project by burning one million μTokens. µBAYC can only be exchanged for BAYC, µAzuki can only be exchanged for Azuki, and the same applies to other projects.

Burning μToken to retrieve NFTs is random, and you cannot accurately retrieve the fragmented NFT you had at that time.

The retrieved NFTs are often floor versions, which involves a problem that all projects attempting to solve NFT liquidity are very concerned about - "how to price high-rarity NFTs", and the solution provided by Flooring Protocol is "value premium only applicable to Safeboxes".

What is "Value Premium Only Applicable to Safeboxes"?

First of all, in plain language: "I hold NFTs with very rare Traits, so I definitely don't want to sell them at the floor price." However, it is difficult to accurately price rare features, which is also a headache for all project parties trying to solve NFT liquidity issues.

The solution provided by the Flooring Protocol is that when users use the Safeboxes function, the "safebox key" can capture the premium of rare NFTs.

For example: when the floor price of BAYC is 30 ETH, and a user holds a rare BAYC worth 40 ETH, if the user decides to sell the NFT using the Safeboxes feature, they will receive:

1. One million µBAYC tokens;

2. A key worth 10 ETH in value.

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