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Share Freezing to reduce NFT price
Share Freezing to reduce NFT price is a feature that gives QP Backers the chance to artificially reduce the NFT price of an amount proportional to their % of ownership. This feature can be useful in certain conditions when QP backers want to lower the price in order to sell the NFT.
What does Share Freezing to reduce NFT price mean?
How does Share Freezing to reduce NFT price work?
The Freeze temporarily affects the share reserve by increasing it. According to the bonding curve formula, this will reduce the price of the fractions proportionally to the amount frozen and consequently the price of the whole NFT. Practically, this feature acts as a fake sale.
To prevent free market traders from being harmed, the Freeze clause can only be activated by a QP holder when the NFT is near the price it entered the Free Market and while a Freeze is in place, the shares trade through the vAMM is temporarily suspended.
Are there any fees to use the freeze feature?
No, there are no fees charged by the platform for using the freeze feature.
Who can benefit from the freeze feature?
Backers who want to sell the NFT when the market price is lower can benefit from the freeze feature.
For a step-by-step guide on how to freeze shares to lower NFT price, visit: Freeze shares to lower NFT price