Equity Tokens
Capital raise by distributing tokens representing the equity in the asset collateral.
Last updated
Capital raise by distributing tokens representing the equity in the asset collateral.
Last updated
A. The house once hosted on the platform is put into a DAO(Decentralised autonomous organisation) and an NFT is issued for this asset. If the owner chooses to use this asset as a collateral and raise capital then members of a DAO community may extract value against an asset using an equity token. After necessary verification and hosting of a house on the platform, the house owner grants permission to have it locked in an NFT
B. The locked NFT then gets converted to equity tokens, that are distributed to investors. These investors in turn become part of the DAO. 20% of the house tokens are locked into the DAO and acts as security buffer for the DAO participants.
C.The owners is selling the equity rights of more than 20% of the house. but still has more than 50% equity left. He may or may not have to pay rent in order to stay in the house. That depends on the country laws.
D. When the house owner sells further equity and looses the majority stake in the house, then the default situation is that the owner becomes now a renter in his own house. And a rental contract has to be then signed for the same. The House ownership is now granted to the DAO investors community. From here on the decisions about the House needs to be take together using community voting or something similar.
E. Rental fee on the property returns into the DAO SC treasury; this, together with 10% transaction fee charged on NFT bond transactions, makes up the financial resource for maintaining the DAO and settling annual Tax.
F. This represents the DAO community as explained above Contribute to treasury on annualised basis.
