ELI5: Explain Like I'm 5

Fractionalization

Fractionalization is when you have something, like a pizza, and you cut it into smaller pieces, so that everyone can have a slice. But instead of just cutting it into equal pieces, fractionalization means cutting it into smaller pieces that might not all be the same size.

For example, if you had a pizza and you cut it into 8 pieces, that's not fractionalization. But if you cut the pizza into 10 pieces, then that would be fractionalization because the slices wouldn't all be the same size.

Fractionalization can also be used to talk about things other than pizza, like money. If you had a dollar and you split it into smaller pieces, like quarters or nickels, that's fractionalization too.

Sometimes fractionalization can be a good thing, like when you want to share something with a lot of people. But other times it can be bad, like when people are fighting over how to split something up and nobody can agree on what's fair.