Tessera excels at creating deeply integrated, community-driven NFT vaults because it is built as a native application on the Ethereum and Optimism networks. Its architecture is designed for composability, allowing vaults (like the SquiggleDAO for Art Blocks) to interact seamlessly with DeFi protocols such as Aura Finance for yield. This focus has attracted significant protocol-owned liquidity, with individual vaults often holding millions in Total Value Locked (TVL).
LABS
Comparisons
Tessera vs Fractional.art: DAO-Owned NFT Vaults
A technical analysis comparing Tessera's DAO-first NFT vaults with Fractional.art's individual-centric fractionalization. We break down governance models, fee structures, and smart contract architectures for infrastructure decision-makers.
Chainscore © 2026
introduction
THE ANALYSIS
Introduction: The Shift from Individual to Collective NFT Ownership
A technical comparison of Tessera and Fractional.art, the leading platforms for fractionalizing high-value NFTs into DAO-governed vaults.
Fractional.art (now part of NIFTEX) takes a different, more streamlined approach by offering a standardized, audited smart contract suite for fractionalization. This results in a trade-off: less custom governance out-of-the-box but significantly lower gas costs and a faster launch process. It pioneered the vault model for blue-chip NFTs like Pudgy Penguins and has facilitated over $200M in total trading volume across its platform, emphasizing accessibility and efficiency.
The key trade-off: If your priority is customizable DAO governance, deep DeFi integration, and building a long-term community asset, choose Tessera. If you prioritize cost-effective, rapid fractionalization of a single high-value NFT with a proven, audited standard, choose Fractional.art.
tldr-summary
TL;DR: Core Differentiators at a Glance
Key strengths and trade-offs for DAO-owned NFT vaults at a glance.
01
Tessera: Superior for Programmable Vaults
Full smart contract ownership: Vaults are ERC-721s, enabling complex on-chain logic and composability with DeFi protocols like Aave or Uniswap V3. This matters for DAOs building automated treasury strategies or using NFTs as collateral.
02
Fractional.art: Optimized for Community Curation
Built-in discovery & governance: Native marketplace and token-weighted voting for vault decisions (e.g., setting reserves, accepting bids). This matters for communities focused on collective ownership and active curation, not just asset holding.
03
Tessera: Higher Technical Flexibility
Permissionless, extensible infrastructure: Developers can fork and modify the protocol (MIT license). Supports custom buyout logic and integration with tools like Safe{Wallet}. This matters for protocols needing bespoke vault mechanics.
04
Fractional.art: Streamlined User Experience
Integrated front-end and auction mechanics: End-to-end platform for fractionalizing, bidding, and managing. Lower technical barrier for non-developer communities. This matters for DAOs prioritizing member onboarding over custom development.
DAO-OWNED NFT VAULTS
Feature Comparison: Tessera vs Legacy Fractional.art Model
Direct comparison of architectural and operational models for fractionalizing high-value NFTs.
| Metric / Feature | Tessera (V2) | Legacy Fractional.art (V1) |
|---|---|---|
Governance Model | DAO-Owned Vault | Multi-Sig Wallet |
Vault Upgradeability | ||
Royalty Enforcement | On-chain, configurable | Off-chain, manual |
Platform Fee | 0% | 2.5% + gas |
Primary Tech Stack | ERC-721, Governor | ERC-20, ERC-721 |
Live on Mainnet |
pros-cons-a
PROS AND CONS ANALYSIS
Tessera vs Fractional.art: DAO-Owned NFT Vaults
Key architectural and operational trade-offs for DAOs choosing a collective ownership platform.
01
Tessera's Pro: On-Chain Governance
Fully on-chain governance and treasury management via its custom smart contract suite. DAO proposals directly control vault actions (buy, sell, fractionalize) without off-chain dependencies. This matters for protocols requiring maximum transparency and censorship resistance, like ConstitutionDAO-style efforts.
02
Tessera's Pro: Curated, High-Value Focus
Designed for blue-chip and high-value NFTs (e.g., CryptoPunks, Art Blocks). The platform's structure and fee model assume significant asset value. This matters for DAOs pooling capital for iconic assets where curation and prestige are primary goals over mass participation.
03
Fractional.art's Pro: Liquidity & Fraction Standard
Pioneered the ERC-721 fractionalization standard (ERC-20 vault tokens) with deep integrations across DeFi (Uniswap, SushiSwap). Vault tokens enable instant liquidity pools. This matters for DAOs prioritizing member liquidity and composability, allowing token holders to trade their position freely.
04
Fractional.art's Pro: Proven Scale & Ecosystem
Largest market share with $200M+ in historical volume and a vast ecosystem of integrated tools (Index Coop, NFTX). The platform is battle-tested for large-scale, community-driven auctions. This matters for DAOs seeking a mature platform with established user patterns and third-party support.
05
Tessera's Con: Limited Liquidity Options
No native AMM integration for vault tokens. Selling fractions requires a peer-to-peer marketplace or off-platform listing. This matters for DAOs where members expect to easily enter/exit positions without coordinating OTC deals, reducing capital efficiency.
06
Fractional.art's Con: Centralized Curation Layer
Relies on an off-chain allowlist for vault creation, managed by the Fractional team. This introduces a permissioned gate for new collections. This matters for permissionless DAOs or those wanting to fractionalize emerging/niche NFTs without platform approval.
pros-cons-b
TESSERA VS FRACTIONAL.ART
Legacy Fractional.art Model: Pros and Cons
Key strengths and trade-offs of the original fractionalization model at a glance.
01
Pro: Proven Market Traction
Established user base and brand recognition: Launched in 2021, the original platform facilitated high-profile fractionalizations like Pudgy Penguins and CryptoPunk #543. This matters for projects seeking immediate liquidity and a trusted, battle-tested platform.
02
Pro: Simpler, Permissionless Minting
Direct, non-custodial vault creation: Any user could fractionalize an NFT into ERC-20 tokens (like $DOG for Doge NFT) in a few clicks without a DAO framework. This matters for individuals or small groups prioritizing speed and simplicity over governance overhead.
03
Con: Centralized Platform Risk
Reliance on a single entity: The original Fractional.art website and smart contract upgradeability were controlled by a core team. This creates a single point of failure and protocol risk, which matters for institutions requiring decentralized, credibly neutral infrastructure.
04
Con: Limited Governance & Treasury Tools
Basic token mechanics: The model focused on fractional ownership and trading, lacking native tools for proposal voting, multi-signature treasuries, or revenue distribution. This matters for DAOs needing a full-suite for collective asset management and decision-making.
CHOOSE YOUR PRIORITY
Decision Framework: When to Choose Which Platform
Tessera for Protocol Architects
Verdict: Choose for maximum flexibility and custom governance logic. Strengths: Tessera's core is a set of modular, composable smart contracts (ERC-721V) that you deploy and control. This allows for deep integration into your protocol's existing tokenomics and governance (e.g., Snapshot, Tally). You can program bespoke rules for vault creation, revenue distribution, and member exits. It's ideal for projects like Art Blocks or Lido that need to fractionalize their own assets as a core feature. Considerations: Requires significant in-house Solidity expertise for integration and ongoing management of the deployed vault contracts.
Fractional.art for Protocol Architects
Verdict: Choose for a turnkey, audited platform with built-in liquidity. Strengths: Fractional.art is a complete, hosted platform with a battle-tested UI and smart contract suite. It provides immediate access to its native marketplace and liquidity pools. The platform handles the complexity of vault creation, bidding, and buyouts via its Splits & Auction House contracts. Best for projects that want to enable community-owned NFTs without building the infrastructure, similar to how PleasrDAO or FingerprintsDAO operate. Considerations: Less flexibility for custom governance; you are adopting their platform's specific rules and fee structure.
verdict
THE ANALYSIS
Verdict and Strategic Recommendation
Choosing between Tessera and Fractional.art hinges on your DAO's primary objective: capital efficiency or community governance.
Tessera excels at creating highly liquid, capital-efficient vaults through its permissionless fractionalization engine. By enabling the minting of ERC-20 tokens (like $PEBBLE for a Pudgy Penguin) against a single NFT, it unlocks immediate, permissionless trading on DEXs like Uniswap V3. This model is proven, with flagship vaults like SquiggleDAO's $SQUIG achieving deep liquidity pools and enabling complex DeFi strategies. The platform's focus on composability makes it ideal for DAOs prioritizing treasury diversification and yield generation over direct NFT utility.
Fractional.art (now part of Tessera) takes a different, governance-first approach by creating bespoke, DAO-owned vaults with built-in governance modules like Snapshot. This results in a trade-off: while fractionalization is more curated and less immediately liquid than Tessera's pure model, it provides superior tools for collective decision-making on the underlying asset. Its legacy includes pioneering vaults for major assets like Nouns, where the $NOUN token governs a treasury of NFTs. This strategy is optimal for communities where the social and governance utility of the NFT is paramount.
The key trade-off: If your priority is maximizing liquidity and financial utility through seamless DeFi integration, choose Tessera. Its model is built for capital efficiency. If you prioritize robust, on-chain governance and community curation of a specific blue-chip NFT collection, the Fractional.art framework is the superior choice. For new projects, Tessera's infrastructure offers the most flexible path; for established communities inheriting an NFT, Fractional.art's governance-centric vaults provide the necessary control.
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