# Pricing NFTs for Buyouts

[Recall that](https://docs.waterfall.market/mechanism/overview) every [shard](https://docs.waterfall.market/mechanism/shards-erc-1155) is listed at all times, and acquiring all of them allows a user to exchange them for the NFT.

Thus, the valuation of a listed NFT is the sum of all of its shards' prices.

<div data-full-width="false"><figure><img src="https://104047098-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiOSZ3O29GZPEKu24lrWX%2Fuploads%2FmFh7GcbaFwKS8p4wuBev%2Fimage.png?alt=media&#x26;token=8eb29c99-df75-488f-a9ef-edbda31a99a0" alt=""><figcaption></figcaption></figure></div>

The reason behind this design choice is to eliminate governance to achieve price consensus.

Submitting proposals, considering them, and submitting votes is a slow and arduous task.&#x20;

Protocols with governing systems that require constant attention (i.e. frequent proposals) and input from users to reach *any* list price have proven to be quite ineffective. Users often become inactive → no price attached to the NFT → buyout can not happen.

With Waterfall's mechanism, there is always a price attached, and incoming shard traders' predictions are immediately reflected.