As we draw closer to the launch of our first Tokenized Asset Sale, we wanted to provide the community an update on the status of the new feature as well as some additional details on how it will function.
Our first Tokenized Asset will be announced and whitelisting will begin by the end of September, and the Security Token Offering will begin in late October or early November.
Property Sale Whitelisting
The first step in the asset purchasing process is investor whitelisting. If you participated in our Seed Round, this process should be very familiar. When our Tokenized Asset is officially announced, you will be able to apply for whitelisting immediately.
On our offering page, you will be able to view all the information about the property including estimated yields, expenses and income, appreciation, location and address, and more. The graphic below is an example, final property details will be made available when the whitelisting process begins.
Prospective investors will be provided with a Private Placement Memorandum after clearing the KYC/AML checks and will also need to sign a Token Purchase Agreement in order to purchase the Asset Tokens. These documents will outline the full legal structure of the offering.
Token Purchase Process
Once a prospective investor has cleared the required KYC/AML checks and signed the Token Purchase Agreement, they will be eligible to purchase the Asset Tokens directly from our smart contract when the sale begins. The current target date for the sale is late October to early November 2021.
The token purchases will be made 90% in BUSD and 10% in Landshare Token (pegged to USD value) with the LAND payment being burned. For example:
Total investment = $100,000 USD
BUSD Raise = $90,000 USD
Landshare Token Raise = $10,000 USD (burned)
Once the tokens are in your wallet, your rental dividend will be airdropped to your BSC wallet every month in the form of BUSD. You will continue to receive the airdrop as long as you hold the tokens in your wallet. Token resale restrictions may apply depending on your jurisdiction. For example, certain jurisdictions require holding the security token for at least one year before it can be sold.
Property Governance
Asset Token holders are the legal owners of the asset, so they maintain control over it. To facilitate the decision making process, asset token holders will have their own governance mechanic specific to the property they possess. This governance protocol will allow holders to make decisions on things like renovation investments and asset liquidation. More details on this process will be made available as we approach the launch of our Tokenized Asset feature.
Investment Security
One of the biggest drawbacks of cryptocurrency is security — protocols can be hacked, wallets can be compromised, and funds can be lost. With Tokenized Assets, you don’t have to worry about any of this.
As the legal owner of a real estate asset, you are entitled to your share of the property’s equity and rental yields no matter what happens. In the case of a compromised wallet, the stolen tokens will be frozen and reissued to a new wallet in your possession.
Token Resale
Since asset tokens are securities restricted to whitelisted addresses, resale on the open market is not possible. As of now, there are two options for token resale: selling back to the platform or selling to another whitelisted investor.
The Landshare Platform may buy back tokens based on the most recently appraised value of the property. This is done at our discretion and is not guaranteed. Tokens bought back in this manner will be made available for purchase through the platform. Private sales can also be arranged between two approved investors where the Landshare Team will act as an escrow in the exchange process.
In the future, asset tokens may be listed on security token exchange platforms.
Conclusion
As the line between traditional finance and cryptocurrency blurs, more and more opportunities for real world investment will be made available through the blockchain. We are very excited to be conducting one of the first STOs on the Binance Smart Chain.
Our Tokenized Asset feature offers legally compliant, secure, and stable yields generated by real estate assets. Even if your wallet is lost or stolen, your tokens will be reissued and you will continue to earn yields.
With an unrivaled combination of convenience, security, and stable yields, Landshare’s Tokenized Asset feature offers one of the most compelling opportunities on the Binance Smart Chain. We look forward to sharing our development process with the community and hope to see you at our token offering in October!
