ESTATEin is developing the platform so as to make possible Global Real Estate assets to be tokenized and registered on the digital record. Blockchain technology has totally reshaped the globalized world. ESTATEin allows everyone from any part of the world to tokenize their Property and register on the blockchain allocated ledgers, which distinctively identify and classify the information regarding legal, physical, historical, financial, transfer of ownership or all other required information about Real Estate asset depending upon the nature of tokenization (Rental, Buying/Selling, Investment in any ESTATEin project etc, to be discussed in detail in the latter part of this white paper).
We believe in a variety of investments. Subsequently, our platform allows some multiple ways to tokenize the Physical asset into Digital asset and their probable consistent returns. Digital assets whereas on blockchain are programmable electronic data that can be decentralized with transparent, fast, near to zero cost and without any middle man. Hence users on the ESTATEin can tokenize, register, trade and circulate the multiple types of Real Estate assets. In addition, their digital identity is protected by law. Digital identity refers to identity information of every entity related to Real Estate assets that exist in electronical form.
Initially ESTATEin will allow selected transparent dominions to tokenize properties. And further on with the voting of users and our expertise we hope to capture the global market share steadily.
Real Estate assets will tokenization also keeps the record of ownership on the blockchain allocated ledger and registration using the following mechanism:
Figure 1. Recording Ownership with Distributed Ledger Technology
ESTATEin platform built-in automated programming and coding will distribute the tokens according to the market price of property set by the users and send the transaction data including all the required legal information to the smart contract of specific property for confirmation and store in the database as well as on-to the blockchain. It will also find the users who are interested in obtaining the specific property tokens. The use of ESTATEin database is to protect the user’s rights according to the law of the local authority.
Token holders get the percentage share of profit side by side with the sale of project (RS&C) according to their percentage share in the total capital of project which represents their ownership of property. We have given the simple Numerical example with assumed value, limited to four token holder investors for better understanding of users as follow.
Let ESTATEin list the Society development project in Dubai along with feasibility report, whose required capital for development, mention in the report is $1000. we assume 4 token holders A, B, C, D are satisfied with project profit and time duration and are willing to invest $100, $150, $250 and $300 respectively, then they will be able to invest through voting and we have already mentioned that vote can be submitted only through EIT token i.e. 1 vote = 1 EIT and as more the no of votes higher will be the share in the ownership and profit of property but in this category investment of token holders cannot exceed the 85% of total required capital. 15% to 25% of total required capital investment is reserved for ESTATEin team.
NOW Token Holder A, B, C, D will invest $100, $150, $250 and $300 by depositing 1000, 1500, 2500, 3000 EIT in Project(X), which will be registered as a 1000, 1500, 2500, 3000 votes respectively and in this example remaining required capital is $200 which is reserved for us and we will invest as token holder by depositing our 2000 EIT, hence percentage share of A, B, C, D and ESTATEin in the Capital, ownership and profit of whole ongoing project (society development) represented below
Let the Society to be developed = X
Capital required for development = $1000 = 10000 (EIT tokens). [1EIT = 0.1 USD
1USD = 10 EIT]
A invests = $100 = EIT 1000
B invests = $150 = EIT 1500
C invests = $250 = EIT 2500
D invests = $300 = EIT 3000 and
ESTATEin invests = $200 = EIT 2000 (reserved)
Total investment = Required Capital = $1000 = EIT 10000
Percentage share of A in the capital, ownership and profit of project(X) = (100/1000) *100 = 10%
Percentage share of B in the capital, ownership and profit of project(X) = (150/1000) *100 = 15%
Percentage share of C in the capital, ownership and profit of project (X) = (250/1000) *100 = 25%
Percentage share of D in the capital, ownership and profit of project (X) = (300/1000) *100 = 30%
Percentage share of ESTATEin in the capital, ownership and profit of project(X) = (200/1000) *100 = 20%
Now let the project(RS) sold at Selling price = $2000 = EIT 20,000
Profit = selling price – purchasing price
= 2000 – 1000
= $1000 = EIT 10,000
Profit of A = 10% of 1000 = $100 (paid in ether)
Profit of B = 15% of 1000 = $150 (paid in ether)
Profit of C = 25% of 1000 = $250 (paid in ether)
Profit of D = 30% of 1000 = $300 (paid in ether)
Profit of ESTATEin = 20% of 1000 = $200(taken in ether after full project sold)
TABLE with assumed values:
|Projects||Type||Required Capital ($)||Project sold ($)||Profit margin ($)||Voting period (days)||Development period (days)||Selling period (days)|
|X||Residential Society||5 million||11 million||6 million||30-45|
|Y||Commercial building||10 million||25 million||15 million||45-60|
ESTATEin platform will not charge any fee from any investor, buyer or seller as profit or interest. Our incentive is to provide maximum benefit to our token holder, even we will not keep any cut from any investors profit that they will earn through our platform and paid in ether.
We have discussed earlier in details about real estate economic importance and effects of real estate on the economy due to its huge share in global economy how they have brightened more with the advent of ESTATEin tokens (EIT). As they are exchangeable and tradeable digital cryptocurrency above and beyond profit from investments in real estate assets. ESTATEin tokens (EIT) are beneficial and provide multiplier effect to the token holders’ capital. As we know that price of any cryptocurrency increases if its market capital increases. In simple worlds if token holder acquire cheaper tokens in crowdfunding and later on invest in some of ESTATEin project , the price of EIT increase by 100% as we have mentioned in investment category that invested tokens will return along with the profit in equalling ether. Hence, token holder will get double the investment they invested, along with their percentage share of profit in ether representing the multiplier effect investments. But if we say for any reason, price of token falls and EIT are invested in any ESTATEin projects then invested percentage remains the same for investment, ultimately increasing the profit return in ether i.e. if price falls by 10% then profit in ether increases by 10%. This empowers the potential and economic future of ESTATEin to enlighten and compete with other cryptocurrencies of the market cap and price. In addition, any invested project market cap of EIT will ultimately increase due to multiplier effect on return investments and profits. The price will go up as a result making EIT attracted for stock traders to hold ESTATEin tokens and multiply their money.
We all know that Blockchain technology consists of new and unique type of decentralized data repositories. However, ESTATEin platform is designed as a shared and distributed database to increase security and transparency whose copies will be duplicated among thousands of Ethereum nodes and split into blocks where each block contains the detail of seller, buyer, investor, price, contract terms and all other required information authorized by the entire network with encrypted signatures of required multiple parties. The transaction will only hold if confirmed by all nodes and if not transaction will not be executed. Therefore ESTATEin is a secured and transparent platform, synchronized and upheld among thousands of nodes. Once data is written it cannot be changed i.e. tokenization of properties with signatures and forensic verification once stored with all the details are unchangeable and reviewed by every member of network to certify the validity of transaction. ESTATEin platform also acquires a highly professional Audit team which will increase the transparency of our platform. The Audit team will issue and publish audit-report along the progress report precisely for the (RS&C) development and investment projects at the end of every month and year in addition with the monthly audit report on all Real Estate investments and incomes.
We will have a smart contract that will represent the property acquisition (We call this REAL Property Contract). This contract will have different steps. Each step will be stamped in the blockchain by the contract.
Once a new property asset is entered in our platform there will be a list of required tasks to be performed. This information will be audited and shared with the platform investors. When we purchase a new property to upload to the platform we will create the property contract associated and will populate it with its basic data:
Property register ID
Acquisition documentation IPFS hash.
Custody information IPFS hash.
Total amount participations.
Value in REAL from each participation.
When we do that the system will automatically create all the associate data for the contract and will mint the Property participations associated to it so that each user will be able to purchase them.
REAL Property Participation or RPP will represent the shares on each property. Each investor will be able to exchange REAL tokens for this property’s participations through our platform. RPPs will also be tradable inside REAL platform so that any investor will be able to transfer and sell their investment to gain liquidity.
When the users buy RPP with their REAL tokens the property contract will hold the REAL balance in an associated wallet. They will be returned to the user when the property is sold.
Each month the platform’s property responsible will add to the property smart contract the earnings from renting the property so the contract will automatically divide and pay in ETH to each RPP holder.
If the platform owners decide to sell the property the distribution of the rental income will get frozen and the platform owners will deposit the profits of the sale (in ETHER) inside the contract, as well as the proper legal documentation of the sale. The RPP holders will automatically receive the REAL tokens invested when the property was bought plus the ETHER corresponding to the profits of the sale related to the RPPs he had at the block when the property was sold.