SECURITIZATION NON-FUNGIBLE TOKENS ON THE BLOCKCHAIN

Abstract

Non-Fungible Token (NFT) is regarded as one of the important applications of blockchain technology. In this article, we propose an asset-backed securities (ABS) scheme that splits the complete NFT into a certain number of units, which are shared by multiple participants. On the one hand, ABS plans to promise high-value and long-term investment returns by enhancing the market liquidity of NFTs. On the other hand, securitized NFTs can participate in De-Fi as an automated market maker (AMM), just like AMM in alternative tokens. However, when a participant with a portion of the NFT tries to obtain full ownership of the NFT, the acquisition process may face some obstacles, including strategic bidding. Therefore, we proposed a game theory model and de- signed a novel NFT repurchase mechanism to overcome these obstacles. Our solution helps to successfully carry out the repurchase process at a reasonable price when issuing single-chip NFT asset-backed securities.