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BlockEstate: community owned real estate

Lite Paper

Executive Summary

BlockEstate is a decentralized finance (DeFi) protocol that aspires to transform the real estate investment sector by launching a decentralized, community-owned real estate protocol that concentrates on tourism-centric properties. Our goal is to democratize access to global real estate investments, reduce entry barriers, and present a professionally managed and transparent platform suitable for investors with a range of financial means.

 

The real estate market is a trillion-dollar industry that has traditionally been dominated by large institutions and wealthy investors. Access to this market has been limited to a select few, leaving most people unable to invest in real estate and benefit from its potential returns. However, with the advent of blockchain technology, there is an opportunity to democratize real estate investing and make it accessible to a wider range of people.

In this whitepaper, we will outline our vision for the BlockEstate protocol and provide details on its inner workings. We will describe our liquidity generation event on the Arbitrum blockchain and how we plan to invest the raised funds in properties around the world. We will also explain how revenue from these properties will be paid out to token holders.

We believe that BlockEstate has the potential to transform the real estate industry and bring financial opportunities to a wider range of people. We are excited to share our vision with you and invite you to join us on this journey.

 

Background

Blockchain technology offers several advantages for real estate investing, including fractionalized ownership and the use of smart contracts to automate many aspects of transactions. However, most attempts to use blockchain technology to disrupt the real estate industry have still required a high level of expertise and capital to invest in. Block Estate takes a different approach by implementing a fractionalized ownership model that aims to make real estate investing accessible to a wider range of people.

 

Proposed Real Estate Protocol

BlockEstate aims to transform the real estate investment landscape by launching a decentralized, community-driven real estate protocol that focuses on tourism-centric properties. By leveraging blockchain technology and decentralized finance (DeFi), BlockEstate aspires to make global real estate investing more accessible and transparent for investors of varying financial capacities.

With immediate plans to register as an LLC in the Cayman Islands, BlockEstate will operate on the Arbitrum network and offer its investors a diversified portfolio of tourism-centric real estate properties. The focus on these properties will enable the protocol to capitalize on the increasing demand for rental properties in popular tourist destinations worldwide.

An experienced team of real estate professionals will be responsible for sourcing, acquiring, and managing properties, ensuring maximum returns for investors. The governance layer within the protocol will empower token holders to participate in decision-making processes related to investments, acquisitions, strategy and partnerships

All assets under management will be displayed in the portfolio section on the BlockEstate website. This section will provide updated information on past revenues, projected revenues, and estimated property values, as maintained by our local contractors.

BlockEstate plans to introduce a dedicated dApp that enables token holders to stake their tokens. Profits generated by the real estate assets will be sent to the staking contract on a quarterly basis. Over the subsequent quarter, these profits will be gradually distributed to staking participants until the contract is replenished for the next pay-out cycle.

We intend to utilize the Arbitrum network for our Initial Liquidity Generation Event (LGE). The purpose of the LGE is to gather funds for investing in global real estate assets and have a fair launch accessible to everyone. The acquired properties are expected to generate rental income and have the potential for capital appreciation. Both rental income and capital gains will be distributed among token holders, offering a compelling financial incentive for investors to engage with the protocol.

 

Unique Selling Points

BlockEstate offers several compelling use cases that appeal to investors, such as:

1.     Enhanced Accessibility: BlockEstate democratizes real estate investing by catering to a diverse range of investors, irrespective of their financial standing or geographical location. Fractionalized ownership grants investors a share of the property, effectively lowering the entry barrier.

2.     Unparalleled Transparency: BlockEstate's protocol employs blockchain technology to ensure complete transparency throughout the investment process. All protocol wallets are public, and ownership documentation is easily accessible in the portfolio section.

3.     Direct Financial Rewards: BlockEstate's protocol establishes a direct financial incentive for investor participation by distributing rental income and profits among token holders who stake their tokens.

4.     Governance Participation: BlockEstate's protocol features a governance layer that empowers token holders to engage in decision-making processes concerning real estate assets. Token holders can vote investment, acquisition, strategy and partnership decisions

5.     Diversified Investment Opportunities: BlockEstate's protocol allows investors to diversify their portfolios by investing in a variety of real estate assets across multiple jurisdictions and property sizes. This approach minimizes risk and presents a more comprehensive range of investment prospects.

 

Implementation

The implementation of BlockEstate will be carried out through a series of well-planned stages to ensure a seamless and secure platform launch. These stages are as follows:

1.     Liquidity Generation Event (LGE): BlockEstate will conduct a Liquidity Generation Event (LGE) on the Arbitrum blockchain to raise funds for investing in global real estate assets. The LGE will offer a fair and transparent opportunity for interested investors to participate in the protocol and obtain tokens in exchange for their investments.

2.     Token Distribution: Following the LGE, tokens will be allocated to investors who participated in the event. These tokens signify fractional ownership in the real estate assets managed by BlockEstate. Token holders can either trade their tokens on secondary markets or retain and stake them to earn dividends and exclusive benefits.

3.     Real Estate Asset Investment: Post-LGE, BlockEstate will utilize the raised funds to invest in a diverse portfolio of global real estate assets. These assets will be chosen after thorough due diligence, emphasizing high-quality properties with the potential for long-term returns for investors. Further details can be found in the roadmap section.

4.     Rental Income and Profit Distribution: Rental income and profits generated by the real estate assets will be proportionally distributed among token holders based on their ownership stake. This distribution ensures that investors receive direct financial rewards for their participation in the protocol, incentivizing them to retain their tokens and engage in platform governance.

5.     Governance: The BlockEstate protocol will transition to a Decentralized Autonomous Organization (DAO), enabling token holders to participate in decision-making processes related to real estate asset management. Token holders can vote on matters such as new investments, acquisitions, major partnerships, member originated proposal and  other asset management-related decisions. Until the governance structure is established, the company remains under the directorship of Andrew Mitchell who will be KYC’d.

6.     Continuous Improvement: The BlockEstate team is dedicated to consistently enhancing the protocol to maintain a secure, efficient, and effective platform for real estate investment. The team will collaborate closely with the community to identify improvement areas and implement changes that benefit all stakeholders.

In conclusion, the successful implementation and long-term viability of BlockEstate depend on several key stages, including the LGE, real estate asset investment, token distribution, rental income and profit distribution, DAO-based governance, and continuous improvement. These measures will ensure the successful launch of BlockEstate, leading to a revolutionary technology that democratizes the real estate market.

 

Tokenomics and LGE

$BEH is an ERC-20 token with a maximum supply 100.000.000, or one hundred million.

The token derives its value from the assets under management owned by BlockEstate and special benefits that come with holding $BEH. During the Liquidity Generation Event 50.000.000 $BEH are offered to the public. BlockEstate aims to raise 5 million $USDC.

20% of the maximum supply will be paired with 20% of the raised $USDC and locked on a DEX on Arbitrum.

Team and initial contributors will receive a 15% allocation, that is linearly vested for 12 months, after an initial cliff of 6 months via Hedgey.

3% of the total allocation will be reserved for airdrops to community members who participate in community building activities and social media campaigns.

11% of max supply is reserved for future expansions.

1% is offered during pre-sale.

diagram01_v4

Funds raised from the LGE will be used as follows:

50% of raised funds will immediately be converted into fiat money and used to acquire real estate as outlined in the roadmap section.

20% will be used to fund initial liquidity and paired with $USDC on a decentralized exchange.

30% will be reserved for runway of the project and expenses like company registration fees.

diagram02

Investment Strategy

BlockEstates investment strategy involves allocating funds raised into various real estate properties. With $1 million raised, investments will focus on a Wadi Jebal villa and a Siwa house. Upon raising over $1.2 million, an Almaza Bay studio and properties in Cairo New Capital and Siwa will be added. When the funds exceed $3 million, the portfolio will expand to include apartments in Barcelona and San Sebastian, as well as two apartment units in Koh Samui. Finally, when more than $5 million is raised, the investments will extend to acquiring apartments in Miami and Mykonos.

Financial projections of all properties are published on our website at https://blockestate.finance

 

$1,000,000 raised

  • Wadi Jebal villa
  • Siwa house

 

More than $1,200,000 raised

  • Almaza Bay studio 
  • Cairo New Capital
  • Siwa small houses

 

More than $3,000,000 raised

  • Barcelona apartment
  • San Sebastian apartment
  • Koh Samui - two apartment units

 

More than $5,000,000 raised

  • Miami apartment
  • Mykonos apartment