💡The Solutions

So what are we doing about these problems?

Increasing liquidity and accessibility can be achieved by removing friction from the markets, lowering the ticket size for entry, and expanding the potential market to the entire world. We have developed a technical and legal system that would allow users to purchase a fraction of an income generating asset like a commercial property. The system would also enable seasoned investors to diversify their portfolio across the globe.

We use a combination of blockchain technology, legal expertise, and real estate experience to let people in countries with unstable monetary policy get access and exposure to high quality real estate assets. People would be able to buy ownership into a large property in small fractions of $100 or less. It would become possible to participate in deals that were previously reserved for very wealthy people, from anywhere in the world.

Estate Protocol focuses on deals where we offer a small part of a large asset, for example, 5% of a $100 million development. These deals would be sourced by partnerships with tech-enabled, traditional crowdfunding platforms that have a long track record of successful offerings, management, and high returns. This would leave Estate Protocol’s investors with the flexibility to decide the amount to invest, and give them access to deals better than any other similar platform can offer. Estate Protocol would act as a liquidity provider in the deal, raising money from interested investors and participating in the crowdfunding process. Our real estate experts would hand pick the highest quality, most suitable for our audience deals out of the many options on large crowdfunding platforms with over a billion dollars in assets under management.

Our allocated portion of the asset would be held under a trust, with Estate Protocol’s investors being beneficiaries in the proportion of their investments, making sure that people have an independent legal claim to their assets. This would ensure that even in the event of Estate Protocol going out of business, investors would be able to claim their holdings. Trusts are globally recognized legal vehicles commonly used by wealthy people to hold assets for themselves and people close to them. The deeds of our trusts would be standardized to make them as easy to understand as possible.

Here's how the process works:

Information Gathering

The first step in the tokenization process involves gathering comprehensive information about the real estate deal. Our team conducts thorough due diligence, including property valuations, zoning assessments, environmental evaluations, and local market analysis. This comprehensive review ensures that only high-quality assets are considered for tokenization.

Deal Publication

Once we have verified the quality and viability of the real estate deal, we publish the listing on our platform. The listing includes essential details such as property photos, descriptions, investment terms, and target funding goals. By providing transparent and accurate information, we enable potential investors to make informed decisions.

Investment Collection

With the deal published on the platform, we open up the listing for stablecoin investments. Users can contribute to the funding goal using popular stablecoins, which provide a stable, accessible, and secure means of investment. This approach allows investors to participate in the tokenization process without exposure to the volatility of traditional cryptocurrencies.

Trust Creation and Property Transfer

If the target funding goal is reached within the specified timeframe, our legal team proceeds to create a trust to hold the property. The trust serves as a legal entity that owns the real estate asset on behalf of the token holders. All participating wallets are listed as beneficiaries in the trust, with ownership proportions determined by their respective investments.

Ownership Allocation

The ownership in the trust is defined by the ownership of the wallet's private keys. Each wallet's proportionate investment corresponds to a specific percentage of ownership in the trust. This transparent approach ensures that each token holder's rights and ownership are protected and easily transferable, as long as they maintain control of their private keys.