# 6.3 Atomic Split

Atomic Split ***fractionalizes*** a Kanon into a set number of fungible tokens which are smaller, but equal in value. Because a Kanon is essentially an asset that collects claimable rewards, its price can be determined using **DCF** (discounted cash flow) analysis.\[i] The split is done within the same wallet. Let’s suppose that there is a Kanon with a market price of 100 SNS on the Kanon Exchange. Its underlying ontology primitive is the keyword *Cosmos* in the English language and its market price reflects a discounted total of expected claimable rewards in SNS in perpetuity at an average lending/borrow rate in DeFi. When the holder of the Kanon decides to apply Atomic Split, the following occurs:

**Step 1:** the holder must stake the original Kanon into Synesis One Atomic Split UI and select a number of fungible Kanons. In this case, the holder selects 10.

**Step 2:** the system splits the non-fungible Kanon into ten separate but smaller and equal in value fungible Kanons. Each child-Kanon will acquire a market price equal to 1/10th of the original par value of the parent-Kanon or 10 at the time of Atomic Split.

**Step 3:** After the split is complete, the holder will have 9 child-Kanons and the Synesis Foundation will keep 1.

**Step 4:** The holder swaps 5 child-Kanons with USDC on Kanon Exchange and retains the remaining 4 in her wallet collecting the proportional fraction of future claimable rewards associated with the remaining 4 child-Kanons.<br>

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[i] For an overview of discounted cash flow, see <https://www.investopedia.com/terms/d/dcf.asp>

&#x20;
