Landshare’s goal from day one has been to create a bridge between real estate and DeFi. Our Tokenized Asset feature is the foundation of this process, as it allows for the ownership of real estate assets directly on the blockchain. As we continue to build on this foundation, we want to provide a strong incentive for LAND holders and crypto users to invest in real estate by boosting the value and utility of Tokenized Asset investments. This is where our new Real Estate NFTs come into play.
What are Landshare Real Estate NFTs?
Landshare Real Estate NFTs are virtual models of the real-world properties sold on Landshare. Each property offered in our Tokenized Asset feature will have its own unique NFT series. In addition to earning rental yields from the real-world property, Asset Tokens holders will also soon receive LAND yields from its virtual NFT counterpart.
Users will be able to stake Asset Tokens in their NFTs to generate LAND yields in a play-to-earn model. The amount of LAND a user generates per Asset Token will depend on the NFT’s Yield Multiplier. For example, if you’re staking 100 Asset Tokens and your multiplier is 2x, you will receive 200 LAND annually. This multiplier can be increased by upgrading and renovating the virtual property over time with special resources generated within the ecosystem.
Upgrading NFTs
Much like in the real world, the nicer an NFT property is, the more yields it can generate. One of the primary objectives of the Real Estate NFT ecosystem is to upgrade your house with various renovations and visual/structural improvements. House NFTs come with a baseline yield multiplier, but they must be upgraded to begin earning the maximum possible LAND rewards.
Each house upgrade multiplies your rewards by a set number. For example, let’s say you have 3 upgrades, each with a 1.2x multiplier, and your house provides a baseline multiplier of 2x, your total multiplier is 2 x 1.2 x 1.2 x 1.2 = 3.456. Please note, all numbers used in the article are for example only and do not reflect the numbers you will see when the feature is live.
Resources and Production Facilities
At its core, the Landshare NFT ecosystem is about resource management — juggling limited resources between repairs, production, and renovations. The ultimate goal is to increase LAND yields with upgrades, but in order to get those upgrades you will need resources — lumber, brick, concrete, steel, and power.
Each resource is produced from its own facility — the Lumber Mill, Brick Factory, Concrete Plant, and the Steel Mill. Each of these facilities produces its respectable resource over time. In the beginning, you start out with just a level 1 Lumber Mill and a level 1 Wind Farm. You can use the Lumber generated from the Mill to build a Brick Factory. Bricks can then be used to build the Concrete Plant, and finally Concrete can be used to build a Steel Mill. Each facility can also be upgraded to produce more of its resource.
While lumber, brick, concrete, and steel are building resources used for specific house upgrades, repairs, and building new facilities, Power is the core resource which is required for all actions in the Landshare NFT Ecosystem. Let’s go over each resource one by one, starting with Power.
Resource 1: Power
Power is the primary resource in the NFT ecosystem. Every action, including harvesting rewards, repairing your property, building upgrades, and harvesting resources costs power. Power generates passively over time, but the amount generated can be increased by upgrading your Wind Farm production facility.
In the example above, the NFT Staker is attempting to harvest LAND Tokens and Lumber from the Lumber Mill. These actions cost a total of100 Power. Part of efficiently upgrading and managing your NFT property is spending your Power supply appropriately. (Note that all resource values throughout the article are for example only and are not final).
Power will be a very valuable resource, and you may find yourself running out frequently. In this case, you can either wait for it to regenerate or purchase more with LAND Tokens, allowing you to perform more tasks throughout the day.
Resource 2: Lumber
Lumber is the first building resource stakers will have access to, and it is generated from the Lumber Mill facility. Lumber is used to repair your property, build new facilities and upgrades, and can be burned for additional Power using the Fireplace upgrade.
When stakers begin production of Lumber, it opens up the construction of further upgrades such as a level 2 Wind Farm and the Brick Factory. Lumber is used as one of the resources for virtually all upgrades, add-ons, and repairs throughout progression of your NFT.
Resource 3: Brick
Brick represents the tier 2 building resource and allows stakers to begin building upgrades that increase LAND yields for the property. Bricks are produced from the Brick Factory production facility.
The combination of brick and lumber can be used to build two upgrades: the fireplace and landscaping. These upgrades, like others, increase the LAND yields of the NFT (multiplier values are examples only and are not final).
In the example above, you can see the first two upgrades accessible: Landscaping (20 Bricks, 20 Power) and Fireplace (50 Bricks, 10 Lumber, 20 Power). In this example, both upgrades increase your LAND multiplier by x1.1. The Fireplace upgrade also enables you to burn Lumber for additional Power, while Landscaping unlocks the Garden upgrade. Certain upgrades, such as Landscaping, are visually reflected in the House NFT.
Resource 4: Concrete
Concrete represents the tier 3 building resource and allows stakers to begin building new upgrades that increase LAND yields for the property. Concrete is produced from the Concrete Plant production facility.
Concrete can be used for a number of upgrades, including bathroom and kitchen remodels. Concrete can also be used to fortify your property, reducing the required frequency of home repairs (more on that later). Concrete is also required to build the production facility for the next resource, steel.
Resource 5: Steel
Steel is the tier 4 and highest-level building resource. The steel-based upgrades provide the highest LAND multipliers, but also take the longest to acquire. Steel is produced from the Steel Mill production facility.
The Steel resource unlocks some of the highest multiplying upgrades, including Steel Siding and Steel Appliances. Both of these upgrades have prerequisites — in order to build Steel Siding, you need Concrete fortification, and in order to build Steel Appliances, you need the Kitchen Renovation. Many of the upgrades for your NFT will require prerequisites in this manner.
Durability and Repairs
As you generate yields with your NFT over time, it will lose durability. Durability applies a negative multiplier to your yield, so for example 50% durability will halve your LAND yield rate, while 25% will quarter it. If a house reaches 0 durability, it will stop producing yields. In order to bring your durability back up, you will need to repair your property.
Property Repair
Property repairs cost building resources (lumber, brick, concrete and steel) as well as power. The types of resources you need to use, as well as the quantities, depend on your upgrades. For example, a property with brick-based upgrades will need bricks to repair, while a property without upgrades will only require lumber. The more upgrades, the higher your repair costs. You will need to upgrade your production facilities to keep up with increasing repairs.
Property Fortification
In order to reduce the frequency with which you need to repair, you can fortify your house using Bricks, Concrete, and Steel. In addition to slowing durability loss, these upgrades allow your durability to go over 100% — applying a positive multiplier to your LAND yield when fully repaired.
For example, when applying the Brick fortification, your maximum durability might max out at 105% instead of 100%. This means that when fully repaired, your house’s yields will be multiplied by 1.05. Then, a further fortification with Concrete might increase your maximum to 115%, which would multiply your yield by 1.15. In essence, your durability is dynamic yield multiplier that can positively or negatively affect your return. Proper resource management and budgeting for repairs is vital for optimized performance.
Rare NFTs
Each Tokenized Property on the Landshare platform will have its own NFT model. In addition to the baseline model, a rare version will be available to the top 10 investors for each property.
The Rare version of the NFT is a recolored version with a strict supply limit of 10. This NFT produces a higher baseline multiplier, meaning as you compound upgrades, the rewards will increase multiplicatively. If you are not a top 10 investor, you can still purchase the rare NFT from another user.
Marketplace
House NFTs can be bought and sold on the Marketplace. Users can list their NFTs for sale and set the desired purchase price in LAND. When NFTs are sold, they retain all upgrades and production facilities, however they do not retain any resources accrued. Accrued LAND rewards also do not transfer.
When you list your NFTs for sale or browse the market, you will be able to view which production facilities it has, its LAND Multiplier, all upgrades, and a custom description from the seller. In the example above, the house features a level 1 Brick Factory, level 1 Concrete Plant, a level 1 Wind Farm. Based on the upgrades added so far, it also has a x1.5 yield multiplier.
The marketplace only features NFTs for sale from other users. Landshare does not sell NFTs through the marketplace, they are only distributed to Asset Token investors. Anyone can purchase NFTs from the market, upgrade them, then resell or hold them. However, you will not be able to generate any yields without Asset Tokens. Resources are also not sold on the market and are tied to your wallet address. You cannot transfer, buy, or sell resources except for power, which can be purchased from the platform for LAND.
Who gets NFTs, and when will they launch?
NFTs are distributed to all Asset Token purchasers over $250 USD (5 Asset Tokens). If you purchased any number of tokens prior to 18 January 2022, you will still receive the NFT but going forward the minimum is 5 Asset Tokens.
In order to purchase Asset Tokens, which are real estate-backed security tokens, sign up for our dashboard at https://dashboard.landshare.io, complete KYC, and make your purchase using BUSD and LAND Tokens. For a guide on the process, please see our Dashboard Walkthrough. In addition to staking the tokens for LAND with the NFTs, Asset Token holders receive monthly rental airdrops. For information on Tokenized Assets and how the process works, check out our video on Asset Tokenization.
This feature is expected to launch late Q1 to early Q2 2022. We cannot provide a firm date yet, as we are still working on the development of this and other features. We will provide updates on the status of this and other upcoming platform features as they are available, and we appreciate your patience!
Conclusion
Landshare Real Estate NFTs allow you to bolster your Asset Token returns with a play-to-earn NFT staking model. Earn yields from a real asset and its virtual counterpart with a single investment!
Landshare offers fractional real estate investment on the blockchain, enabling hassle-free investment for as little as $50. You can find out more about the Landshare platform at https://landshare.io and view our current offering at https://app.landshare.io/property-details.
