Landshare Feature Preview: Tokenized Assets

Landshare strives to offer accessible real estate investment opportunities on the blockchain. The most common model for selling assets on-chain is through tokenization.

Asset tokenization a very simple yet effective solution for blockchain real estate — it turns real world property into a liquid asset class through the use of special security tokens.

What is Asset Tokenization?

How Does Asset Tokenization work?

To solve these issues, the asset is not tokenized directly. Rather, the asset is held in an LLC, and ownership of that LLC is represented by the tokens. So when purchasing a tokenized asset, you are actually purchasing a share of the company that owns it.

Source: A General Model Of Asset Tokenization — Otonomos.com

In addition to the LLC which owns the asset itself, a parent company (in this case, Landshare’s management company) manages the asset on behalf of the token holders and takes a management fee for the services.

How Will Landshare Implement Tokenized Assets?

When your address is whitelisted, you would be able to buy, sell, or transfer the token on the Landshare platform. Holding the token would entitle you to a share of the rental income generated by the property.

In summary, the process is designed like this:

  1. An asset owned by an LLC which is tokenized and listed on Landshare
  2. Potential investors perform KYC and get whitelisted to ensure legal compliance
  3. Whitelisted users purchase asset tokens directly from the Landshare platform using BUSD
  4. Token holders receive a monthly BUSD payout representing their share of the asset’s profits
  5. The tokens can be sold back to the Landshare platform (restrictions may apply) or distributed to another whitelisted user using a third party token exchange service

All token transfers on the Landshare platform (buying or selling asset tokens) would incur a LAND token fee.

Can anyone sell their assets on the Landshare Platform?

Who can use this feature?

The following countries will not be permitted to use the Tokenized Asset features. Additional restrictions including time locks may apply depending on your country, and this list is not all inclusive.

  • United States
  • Afghanistan
  • Belarus
  • Burundi
  • Serbia
  • Somalia
  • Congo
  • Guinea
  • Guinea-Bissau
  • China
  • Iran
  • Zimbabwe
  • Yemen
  • Venezuela
  • Iraq
  • Libya
  • Lebanon
  • North Korea
  • Bosnia and Herzegovina
  • British Virgin Islands
  • Central African Republic

When will this feature launch?

Bringing Real Estate to the Blockchain