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Jesus Shuttlesworth

What Is Fractional Ownership and How Does It Work?

October 20, 2022

We've all been there. You want a new pair of shoes, but they’re too expensive. You want to try out a new sport, but you don't want to buy all the equipment yourself. And sometimes, you just want to own part of something instead of all of it—but there's no way to do that without buying the entire thing.

But what if there was another way? What if you could own a share of something without having to buy it all at once? Fractional ownership makes this possible.

What is fractional ownership?

Fractional ownership is when the cost of an asset is split into percentage shares, meaning that multiple people can have ownership of the asset. The asset’s value is split into many different pieces, or “fractions”. 

So instead of hucking out a fortune for 100% ownership of that Charizard card, you can stay within your budget and buy 10% of it. This way, you can have ownership of high-value assets without breaking the bank.

Fractional ownership is a popular model for highly expensive assets like cars and real estate. However, with its rising popularity, this investment structure is extending to other types of assets as well. Nowadays, you can buy fractions of sneakers, paintings, and even trading cards. With so many different kinds of fractionalized assets, there’s something for everyone.

How It Works

It starts with finding something you're interested in buying shares of. Once you find something you’re interested in owning, determine the number of shares that’s right for you and your budget. With the flexibility that fractional ownership provides, the choice is yours.

Once you buy ownership, let your shares do the work for you. When the asset goes up in value, so do your shares. The higher percent ownership you have, the more you earn.

It’s important to stay updated on how well your investment is doing over time. On TENAMINT, you can see how well your entire portfolio is doing, as well the performance of each individual trading card you own shares of. This kind of information is extremely important as it helps you decide what to do with your shares. Maybe their value is dropping, so you choose to sell them. Or maybe they’re going up in value, so you choose to purchase more shares of the same asset. No matter the situation, it’s crucial for all owners of a fractional asset to stay informed in order to make an educated decision.

The Pros of Fractional Ownership

Now that you know what fractional ownership is all about, let’s take a look at the advantages.


In general, assets that go up in value over time are usually quite expensive. With fractional ownership, this steep initial investment is split, making these high-value assets affordable for anyone.


Fractional ownership is an excellent option for those who don't have the resources to invest. Not everyone has a spare 100k lying around, and oftentimes, high-value assets are owned exclusively by the wealthy. But no matter our circumstances, everyone deserves to have the opportunity to make investments for themselves and for their futures. Shared ownership is an excellent way of democratizing assets for people who otherwise might not have access to them.

Diversify Your Investment Portfolio

Putting all your eggs in one basket may sound like a convenient option, but it’s a risky one. When you spend your whole budget on a single asset, you never know if you’re going to make it big, or if you’re putting it all on the line for something that’s eventually going to fail. There’s less risk with fractional ownership, since you can spread your investment across several different assets with ease.

The Cons

As with all great things, there are some disadvantages when it comes to fractional ownership.

You Don’t Own the Whole Asset

With fractional ownership, you may have ownership of an asset, but you don’t own the whole asset. Since you’re sharing ownership with many other people, the asset is owned by multiple people at once. This may be unappealing to some, especially if you have genuine interest for the asset itself. However, the risk of this being an issue depends on the person and their attitude toward the asset.

Less Control Over the Asset

With less ownership comes less weight. If you only own 10% of an asset, your opinion only has 10% sway in all decisions regarding the asset. 

Being Bought Out

If someone has an interest in buying out the card - they can make a offer to the current owners. These offers are often made above market value and can be approved or declined by the the fractional owners. At TENAMINT, this is done through a voting process that requires over 70% of card ownership to vote in favour of the buy-out.

How does fractional ownership relate to cryptocurrency, the blockchain, and Web3?

With the rise in Web3, many people are realizing the powerful potential that these new technologies can have when applied to the fractional ownership model.

At TENAMINT, our fractionalization process is done through the use of blockchain technology, meaning it's secure, transparent, and fair. The technology allows the collectors to have real decision making power over their card collection.

Fractional ownership is the future. That’s why we at TENAMINT want to bring fractional ownership to the trading card world—so every fan can have front-row access to the hobby and their favorite athletes.