💡How do we do it?

The RAW way of solving these problems

Increasing liquidity and accessibility in the market can be achieved by eliminating barriers, and reducing the high entry-level investment requirements. We've established a technical and legal infrastructure that enables users to participate fractionally in income-generating properties like commercial real estate by buying our digital tokens. This approach also facilitates portfolio diversification for retail investors while offering them stable capital appreciation and regular cash flows in terms of rental income.

Combining Real Estate with Blockchain technology: As a first step, the idea is to identify and acquire a rent-yielding commercial estate via a Special Purpose Vehicle (SPV). This SPV will be an LLP between the founders of our venture thus restricting the ownership and decision-making authority. Next, a blockchain-based digital asset will be created for the property via the tech platform we’re building. This digital asset will then be broken down into shares which will be enlisted on the same platform for an ‘initial token offering’. Retail investors will be able to buy a share of this digital asset in exchange for the right to their share of the rental yield from the RE property.

The platform will also create a marketplace for the secondary sale of these tokens to solve for illiquidity. Retail investors will be able to buy and sell tokens of the digital asset at a mutually agreed price much like how people buy and sell equity stocks on Zerodha or Groww. The price of the token will have a floor and ceiling based on the real-world value of the real estate property as per professional third-party auditors. In this way, the token price will be pegged to the RE value and the investors can benefit from the capital appreciation as well.