NFTear

NFTEAR

Github link: https://github.com/NFT-Share/ThresholdSignatureNetwork

Vercel: https://nftear.vercel.app/ 

NFTs are more than just collectibles. They often come with utilities like airdrops, staking yields, and revenue rights. 

The problem is, if you want to access these utilities, you either have to pay the full price (which can be difficult since some NFTs are worth $5k–$10k) or get nothing. Users might want to own just a part of the NFT and benefit from the utilities in the same proportion. However, today, even though there are protocols that fractionalize NFTs, sharing those utilities across multiple owners still requires trust in the original holder. This concept also applies to real-world assets that can be tokenized and fractionalized. For example, an NFT could represent ownership of a flat, and holders of fractional shares would receive their proportional share of the rent.

In many cases, protocols are designed assuming the NFTs belongs to an EOA, so we need to keep the NFT in an EOA but it raises the trust assumption to the holder. We want to have pre-defined distribution rules that can execute automatically without trusting one of the holders.

Introducing: Threshold Signer Network (TSN)

The Threshold Signer Network (TSN) removes that trust assumption.Think of it as Infura for NFT custody utilities: a threshold cryptography-based decentralized signing infrastructure that can securely hold NFTs, execute utility claims on behalf of fractional owners, co-create signatures across nodes, and broadcast them to the on-chain distribution contract.

Underlying Technology

At its core, TSN is a network of nodes that collectively control an NFT’s externally owned account (EOA) using threshold cryptography. No single node has the full private key; instead, the network co-signs transactions.

Distributed Key Generation (DKG): TSN uses threshold ECDSA (secp256k1, the same curve Ethereum uses) with a DKG protocol such as Gennaro–Jarecki (GG18). This ensures that the EOA’s private key is never constructed in one place. Instead, nodes hold independent key shares generated in a trustless setup phase.

Threshold Signing: When a transaction (e.g., claiming an airdrop) is required, nodes produce partial signatures over the message digest. TSN uses threshold ECDSA.Meanwhile BLS makes aggregation simple, Threshold ECDSA is Ethereum-native and easier to implement

Majority Rule: For a signature to be valid, at least 66% of the nodes must contribute partial signatures. For example, in a 5-node setup, 4 signatures are required. This threshold ensures both liveness (no single node can block progress) and security (a small collusion cannot steal funds).

Trustless Custody: The NFT sits in a TSN-controlled EOA. Since the full private key never exists, no single person or node can unilaterally transfer or misuse the NFT. The only way to act is through the threshold signing protocol.

Integrity Mechanism: To become a node in TSH, node operators neet to stake a certain amount of money, and if one node acts malicious its stake gets slashed. By being honest, protocol gets a cut out of the money to split among the nodes.

This design ensures secure custody, collective utility execution, and automatic reward distribution, all without relying on a trusted third party.

How TSN Works

1- NFT owner deposits their NFT into a TSN-derived address.

2-Threshold Signer Nodes watch for utility opportunities such as airdrops.

3-Nodes co-sign the required Ethereum transaction, and an aggregator finalizes the signature.

4-Rewards are sent to the Manager contract, which handles fractional ownership and distribution.

Case Study:

NFT AirdropsWe cannot ignore the hype around airdrops. Launching an official NFT collection and rewarding holders has become the go-to strategy for many projects. For example, on Vana chain, V NFTs were sold for nearly $5,000 each, and each wallet holding one received an airdrop worth $5,000 in tokens.

The problem is accessibility. Many people wanted to participate and benefit from the airdrop but simply could not afford the full NFT price.

Imagine a collection with a supply of 1,000 NFTs. In the traditional model, only 1,000 wallets can participate and receive rewards. With our infrastructure, each NFT can be fractionalized and shared, allowing tens of thousands of participants to access the same utilities and benefits.

Another aspect is price efficiency. If the floor price of an NFT is $4,000, a user might prefer to pay $1,000 for a 20% share instead of buying the whole NFT. In this scenario, a single NFT effectively represents $5,000 in value when fractionalized. This allows NFT owners to sell fractions at higher effective prices compared to the listed floor, unlocking liquidity while maintaining potential upside.

How does the flow work for airdrop distribution:

The NFT owner sends the NFT to the TSN-owned EOA and NFT sits in a TSN-controlled account.

An airdrop claim requires the NFT owner’s signature.

Majority of the nodes' signature is required for a valid transaction

Claim TX gets broadcasted to the network and executes.

Rewards are sent to the Manager contract and distributed to fractional token holders.

Demo Video Link: 

Contract Side: We implemented a Manager contract that:Fractionalizes the NFT into ERC20 tokens.Receives airdrop rewards.Distributes them pro-rata to FRAC holders.

Future Possibilities

End-user Product: A wallet-like app where NFT owners can fractionalize assets and share utilities without trust.

SaaS Offering: Projects can integrate TSN into their ecosystems to let communities safely co-own utility NFTs (DAO treasuries, game items, or revenue NFTs).

ERC Token Standard: Generalize this into a standard for fractional NFT custody and utility distribution, so any dApp can plug into TSN as infrastructure.TSN proves that NFT custody and utility sharing can be decentralized, safe, and scalable.

Deployments:  

NFTRegistry: "0x74d24760573516672b93d3B252407DB66Ec6b445", 

Example Manager: "0x9eB4C5E5a8f4891afDeCe633aA1d63906802C820", 

Example ERC20 NFTShares: "0x533C22F18caf4Aa7E5B635Ab92f8d9a3F5791545",

Example NFTContract: "0x018394653bCB2e06886fdA8EbCF297F93307c285"