A number of “limited edition” ERC-1155 fractional ownership tokens is allocated for each item sold through the marketplace. The total number of ownership tokens to be minted for each item is fixed and is based on the item’s value set by the seller. Token buyers’ total fractional ownership of an asset is determined by the total denominated value of ownership tokens held, divided by the total number of ownership tokens minted for the asset.
ⓘ Quantity held ÷ Total minted = Buyer’s % co-ownership of physical collectible asset.
The minted tokens function as on-chain “ownership certificates” and holders of the tokens are, collectively, the legal owners of the physical collectible item. The minted ownership tokens serve the same purpose as a vehicle title or the deed to a house and land. Your purchase of a collectible item’s ownership tokens, along with agreeing to DiviD’s Terms of Service, forms an enforceable agreement that you, as a fractional holder of the item’s ownership tokens, are a legal co-owner of the physical collectible asset.
This arrangement is similar to owners of real property holding title as Tenants In Common (TIC). That is to say, multiple individuals can own various proportional interests in the property and each can freely sell or transfer their ownership interest to a 3rd party who takes the seller’s place as a co-owner.