Introduction
Tokenizing real estate brings several challenges, such as ensuring ownership rights, facilitating fractional ownership, distributing royalties, and enabling secondary trading. EleveX addresses these issues with its unique methods, providing a seamless way to participate in real estate projects through blockchain technology.
Fractionalization: Making Real Estate Accessible
To democratize access to real estate projects, EleveX fractionalizes properties using the ERC-1155 token standard. This approach allows participants to buy stakes as small as $10. Each new real estate project is minted as a fungible ERC-1155 token, claimed by the purchasing address.
Why ERC-1155?
ERC-1155 was chosen over NFTs because, while each project is unique, the stakes within a project are identical, making them fungible. This facilitates ease of trade, as these tokens can be traded in the same format as ERC-20 tokens, providing users with a familiar crypto exchange experience.
Ownership: Ensuring Legal Rights
When participants acquire stakes in real estate projects through EleveX, they receive project tokens that confer legal rights over the assets. Each ERC-1155 project token includes embedded metadata within the smart contract, ensuring comprehensive ownership details.
Key Metadata Features
- Legal Contract Hash: The smart contract embeds the hash of the legally binding document associated with the property token. This permanent, immutable link ensures only token holders can access the document, securing legal rights over the project, including royalties, project timelines, and property details.
- Asset’s Street Location: The specific street address of the property is recorded in the smart contract, enhancing transparency and enabling potential buyers to identify the property.
- Asset’s Geo Coordinates: The latitude and longitude of the property are stored for precise location data, aiding in mapping and analysis.
- Property Valuation: The latest valuation of the property, determined by professional appraisers, is included in the smart contract and updated periodically.
- Property Token Valuation: The valuation of the property token reflects its current market worth, influenced by real estate market performance and buyer interest.
- Property Type: The type of property (Residential, Office, Leisure, Industrial, etc.) is specified, helping participants assess typical returns and risks.
- Land Registry Data: Critical legal information from the land registry, such as parcel numbers and building specifics, verifies ownership and ensures all legal requirements are met.
These detailed features ensure transparency, legal security, and trust, making real estate participation more accessible and reliable.
Royalties: Maximizing Returns for Fractional Owners
Royalties are crucial for fractional ownership since multiple owners cannot physically reside in the property. EleveX introduces various real estate projects, such as buy-rent-sale or buy-renovate-sale, to address this.
Example: Buy-Rent-Sale Projects
In a buy-rent-sale project, participants receive monthly royalties from tenants in stablecoin and a share of the sale revenue when the property is sold. This model varies with project types, including hotels, restaurants, cinemas, and apartment complexes.
Managing Royalties
Owners can manage their royalties through a user-friendly dashboard, where they can view incoming and past royalties, make claims, and manage properties, simplifying ownership management.
Trade: Enhancing Liquidity and Flexibility
To facilitate easy trading and instant liquidity for traditionally illiquid assets, EleveX operates as an exchange. Project tokens are traded using limit orders, market orders, and a quick sale feature.
Trading Features
- Pairs: Initial trading pairs include USDT, USDC, and ETH.
- Liquidity: Traders can view liquidity for each project and real-time price action.
- Order Types: Limit orders, market orders, and quick sale options allow for flexible trading strategies.
- Quick Sale: Tokens can be sold slightly below market price for WElvx tokens, providing instant liquidity.
This exchange structure ensures that real estate project assets are easily tradable, enhancing their liquidity and accessibility.
Conclusion
EleveX is setting a new standard in real estate tokenization by addressing key challenges with innovative methods. By leveraging blockchain technology, EleveX enhances transparency, legal security, and market accessibility, making real estate participation simpler, more secure, and more inclusive than ever before.
Learn more about EleveX, our partnerships, and latest developments here.
