Real Estate Tokenization
Last updated
Last updated
The lifecycle of any real estate in Briky Land's ecosystem starts with tokenization.
When landowners choose to let their real estate participate in Briky Land's ecosystem, a request form of tokenization must be filled out on the Briky Land website. Noticing the demand, Briky Land will send our agents to qualify the assets to collect information and make sure any necessary administrative procedures are positively available. If no issue appears, Briky Land's managers will create tokenization requests on the smart contract. These tokenization requests are virtually public selling offers of real estate.
A tokenization request will contain these informations:
requester: Address of the real estate seller
uri: Uniform resource identifier of the real estate, which in our particular case, shall be an IPFS link to the corresponding metadata file
totalSupply: Total number of NFTs will be minted to represent the real estate
maxSellingAmount: Total amount that the seller expects to sell, which buyers cannot buy accumulatively more than
minSellingAmount: Required sold amount must be surpassed so that the tokenization process can be completed
unitPrice: Initial price of a single token to be minted, limited at 100 USD, relatively for each specific cryptocurrency
currency: Address of the cryptocurrency that the seller expects to trade with
expireAt: Some real estate ownership has an expiry that shall be stored directly in the contract once tokenization is completed
duration: Amount of time that the seller expects the public sale to last, counted from the moment admin lists the request after validation
During the public sale, anyone can join to deposit, quantized by the number of tokens they wish to buy and multiplied unitPrice to determine the corresponding cost in the predefined currency. The deposit will be locked inside the contract, and not transferred to any personal address until the verdict of the next phase. The system prohibits people from depositing more than maxSellingAmount overall.
After the public sale when no one can ever deposit anymore, if the deposited amount reaches minSellingAmount then the real estate is qualified to be tokenized. Within the 30 following days, the seller and agents from Briky Land must complete the 7 administrative processes to transfer the real estate ownership to Briky Land as the proxy entity because the ownership from that forward will be shared among multiple inside the system of Briky Land.
Once the ownership transfer is successful, Briky Land will confirm the tokenization. A new NFT set with totalSupply tokens will be newly minted, bound with uri and expireAt. The correct deposit amount of NFTs will be transferred to the contract so depositors can individually withdraw their corresponding amount of tokens. The deposit money in predefined currency inside the contract together with the remaining tokens that are not sold, will be sent to requester (the seller's address).
If the happy case can't be achieved at any step of the aforementioned process, including the deposited token number being less than minSellingAmount or the administrative process not being done in 30 days, the tokenization will be canceled. The depositors can then withdraw their previous deposit.
The maximum/minimum selling amount mechanism is a significant feature that helps sellers meet their expectations of liquifying real estate. In best sales, the seller always keeps at least totalSupply - maxSellingAmount tokens. In worst sales that are qualified enough to tokenize, the seller always gets at least minimumSellingAmount * unitPrice in the predefined currency. If the tokenization is canceled, everyone can retain their possessions.
