Fractional Art is a decentralized protocol where NFT owners can mint tokenized fractional ownership of their NFTs. These tokens then function as normal ERC20 tokens which have governance over the NFT that they own.
Fractional Art is used for multiple different reasons. It allows people who have been priced out of expensive collections to gain exposure to them by buying a part of the NFT. For example if you wanted exposure to a Bored Ape Yacht Club NFT, but did not enough ETH to purchase one, you could buy whatever percentage of one you liked as long as one is available on Fractional Art. Fractional also allows artists to see some liquidity from their art without having to sell the entire piece.
Once a person owns a fraction of the NFT, they can vote on the reserve price of the NFT. The reserve price is a set price by the holders in which a person can bid to purchase the entire NFT. If the bid is successful, the ETH is distributed to all owners, based on what percentage of the NFT they owned. For example: If a person owned 1% of an NFT that was bought for 50 ETH, they would then receive .5 ETH.