Utilities of the Landshare Token
The Landshare Token sits at the heart of the Landshare platform. All features utilize the token either as a payment method or means of access. Part of the long term success of any token relies on controlling supply and limiting circulation. With the Landshare Token, we will be implementing several mechanics to increase utility and remove supply from circulation.
This article provides a rundown on present and future utilities of the Landshare Token as well as a rundown of supply control mechanisms.
Tokenized Asset Purchases
Asset Tokenization is the core feature of the Landshare platform. 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. For more information on Tokenized Assets, please see our Tokenized Assets Medium article.
Each asset token is paid for in 90% BUSD and 10% LAND tokens. All LAND tokens used for asset purchases are burned and removed from circulation. This includes assets sold during initial STO phase as well as tokens resold from buybacks. As more assets are tokenized and the volume of Asset Token exchanges increases, more LAND Tokens will be removed from circulation.
The Property Vault is a stablecoin vault which provides rewards for BUSD
stakers. Stakers receive BUSD and Landshare token rewards for a combined
average APR of 30–50%. A portion of Property Vault funds go to LAND Token buybacks which are permanently removed from supply.
In order to deposit, withdraw, or harvest from the Property Vault, stakers must hold a Landshare Token collateral at a ratio of 8:1 (for every 8 BUSD deposited or withdrawn, the staker must hold 1 Landshare Token). Tokens must be in the user’s wallet but are not locked or deposited into the vault.
Tokenized Asset DeFi Features
Landshare’s upcoming Tokenized Asset DeFi features, including Asset Token Funds, including loans, Asset Funds, and auto-compounding, make use of the Landshare Token in many ways while simultaneously reducing circulating supply.
Asset Token Loans
Landshare’s Asset Token Loan feature allows users to borrow BUSD by providing Asset Token collateral. BUSD loans accrue LAND interest over time which must be repaid before receiving the collateral back. All LAND interest accrued by the platform is burned.
Asset Token Funds
Landshare’s Asset Token Funds enable whitelisted property investors to gain exposure to multiple assets in a single investment. Shares of the fund are represented by tokens which can be bought from the Landshare platform. Fund tokens, much like Asset Tokens, are paid for partially in LAND which is then burned.
Auto-compounding for Tokenized Assets
Landshare’s auto-compounding features offers the ability to auto-compound the rental yields of a property, automatically buying more Asset Tokens which will, in turn, increase rental yields over time and asset exposure over time.
Part of the auto-compounding mechanic involves converted the rental yields into LAND to purchase additional Asset tokens in order to meet the 10% LAND requirement. This will be done by buying LAND at current market rates. Like regular Tokenized Asset sales, the 10% LAND that is used to purchase will be burned.
More details on our Asset Token DeFi features can be found here.
Crowdfunded House Flipping
Crowdfunded House Flipping will allow users to invest in a house flipping project, receiving a lump sum payout upon the conclusion of the sale. Crowdfunded House Flipping will work similarly to Tokenized Assets, where your investment is represented by a token. Instead of holding tokens for rental income, house flipping tokens are cashed out at the end of the flip.
The Landshare Governance Protocol allows users to propose and vote on changes to certain aspects of the Landshare Platform. Each token staked in our LAND Token Vault counts as 1 vote. Some examples of eligible proposals include:
- Property Vault LAND payout
- Property Vault Collateral amount
- Trust Fund spending
- Promotional and community events
- General platform and tokenomic changes
- Asset Token Loan interest rates
Third Party Asset Listings
Landshare intends to expand our tokenized offerings to third party sellers. Whether you are a resort owner, Airbnb host, or an real estate investor you may be eligible to tokenize your assets and share them on the Landshare platform.
All Third Party Asset Listings will be required to be paid in a minimum of 10% LAND — with the option of the third party requiring any percentage of 10–100% being paid with LAND. At a minimum, likewise to all other Tokenized Asset sales, 10% of the LAND used for the purchase will be burned. In a scenario where more than 10% is required to be paid in LAND the third party will gain ownership of the remaining LAND.
As the Landshare platform continues to develop, additional use cases and supply control mechanisms will be introduced to increase the utility and limit the supply of the LAND Token. Our vision is to not only offer real estate investments but to create a full fledged DeFi solution for real estate on the Binance Smart Chain, with the LAND Token being a core component of all platform features.