REIDAO Real Estate on the Blockchain - Digitising Real Estate Ownerships
What is REIDAO?
REIDAO is creating tokens (digital assets) backed by real
estates with its unique Token ID (think stock-ticker) for every property
that is listed on the platform. Every Token ID will have its own cap of
tokens available/created, its own valuation - based on the property
that is backing it, and its own track record (of price movements, rental
income/dividend, and so on).
We want to democratised property opportunities, to be accessible by
everyone, wherever they are. By buying and selling these tokens, you are
- in a way - buying and selling fractions of the underlying property.
We have created a structure including Public Trust Company to create the
link between the tokens and the actual properties.
Our vision is to have a Property Tokens Exchange Board, just like a
stock exchange, where it will list all the available property tokens
globally that has been tokenised.
By putting real estate ownerships on the blockchain, we open up a new way to invest in real estate markets.
Based on the DAO model, real estates can be put up for sale in the form of DAO tokens, where token owners will vote on strategic issues regarding the real estate.
Instead of putting one big amount of capital to a single real estate, now you can divide them up and invest in smaller pieces of many real estates.
Each ownership token can be independently traded, which creates a lower point of entry to own a piece of a real estate, compared to the traditional way.
Gain access to real estates market globally.
Your asset ownership tokens can be transferred, inherited, or used as collaterals. It is basically a store of value that is backed by real world's real estates.
Actual ownership of the real estate is held by registered trust companies in which jurisdiction the real estate is in, making sure that it is managed to benefit the DAO.
Crowd-owning — The Next Step for Real Estate Ownerships
Potential use-case of having a digitised form of real estate ownerships.
Darvin Kurniawan (Founder & CEO)
We should think about the blockchain as another class of thing like the Internet — a comprehensive information technology with tiered technical levels and multiple classes of applications for any form of asset registry, inventory, and exchange, including every area of finance, economics, and money; hard assets (physical property, homes, cars); and intangible assets (votes, ideas, reputation, intention, health data, information, etc.). But the blockchain concept is even more; it is a new organizing paradigm for the discovery, valuation, and transfer of all quanta (discrete units) of anything, and potentially for the coordination of all human activity at a much larger scale than has been possible before.
Blockchain: Blueprint for a New Economy
You might have heard at least once in your life that real estate is the king of investments, and that 90% of millionaires are made through real estate investments. At one point of time, you may have thought that you should diversify some of your savings/investments to buying real estate and/or real estate investment trust (REIT). You may even have convinced yourself that a particular real estate you’ve had your eye on will appreciate in value — lo and behold (or maybe not that surprising), it increased in value indeed, right under your watchful eye.
If you have succeeded and are now holding an income-producing property as an investment, good for you. But if you are like me and most other people, we have procrastinated due to one reason or another: the fact that buying real estate involves some major commitments, or we don’t have the financial capacity to invest in real estate, which requires a prodigious amount of cash as downpayment, the hassle of applying for a bank loan, among other things.
What if we tell you that you are not alone? We believe many people have missed lucrative real estate opportunities exactly because of the reasons mentioned above. And this is exactly the problem that we are looking to help you solve.
to a wealth of advancements in technology, it is now possible to create
digital assets that we can use to store value, such as real estate, and
trust in its transparency. Let’s throw the spotlight, temporarily, on
the innovative technology at the core: Blockchain — core technology
behind Bitcoin — is a distributed database that is capable of
maintaining a continuously-growing list of records that is secured from
tampering and unauthorised revision. As it can, and will, reside across a
network of public computers, the blockchain is authenticated across
this distributed network before any new transactions are verified,
cleared and stored in a block that is linked to the preceding block.
More secure and tamper-proof public ledger to record ownerships
REIDAO (www.reidao.io) is a Singapore-based company which is creating digital assets backed by a specific real estate. This process is called “tokenisation”. Each real estate can be broken up into many tokens with a set value, and each token can be independently traded, making it an ideal alternative real estate ownerships form.
Imagine a real estate asset with a market value of USD 1,000,000. Traditionally, you would have to cough up the downpayment to purchase the real estate (e.g. USD 200,000 if 20% downpayment), and to be able to secure the loan required for the balance amount.
With REIDAO, the same property will be broken up into many tokens — let’s say, 100,000 tokens. With a market value of USD 1,000,000, each token will be valued at USD 10. Put simply, property ownership of this real estate is broken up into 100,000 pieces with a value of USD 10 each. You choose to participate in the purchase according to your financial ability.
Leveraging on blockchain technology for authentication, these tokens are valid cryptoassets and should be treated similarly to other cryptocurrencies (e.g. Bitcoin, Ether, etc). They are held in a digital wallet where you, as the owner, hold the (private) key to access it. These tokens will maintain their value according to the underlying asset that backs them up.
Just like cryptocurrencies, these tokens can be traded independently. You will be able to list your token(s) for sale on our platform where potential buyers can view them and will buy it from you if they agree on your asking price (or let negotiations ensue). This mitigates one of the most common problems in traditional real estate where it is usually difficult to find a buyer. In this type of ownership, you are not selling the whole property; you are only selling a portion of the said property.
The tedious paperwork usually attached to the traditional way of investing in real estate is also eliminated. Proof of transactions of the tokens are recorded in a public ledger where they are secured cryptographically, making it almost impossible to be hacked and altered.
As we grow, we will be listing multiple types of real estate from multiple cities around the world, enabling you to diversify your property ownerships to many regions that you traditionally would not have access to.
In the end, we hope that what we are doing will help in level-ing the playing field of real estate opportunities, putting you and I on the same level as the “big boys”.
Stay tuned for our updates and announcements on our first property sale for the Proof of Concept! Reach out to us at [email protected] to join our updates list and Slack community.
REIDAO in Media:
NEO Kok Beng
Founder, Chairman. Adjunct Associate Professor, National University of Singapore.
TAN Wee Liang, Prof.
Advisor (Legal). Associate Professor, Singapore Management University.
REIDAO Current Developments
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