The $PROP token use cases
The $PROP Token is the utility token of BlockPark, it is sustainable and has a fixed supply. It can be earned, staked, bought, and sold to purchase NFTs that represent fractional ownership in tangible real estate assets.
The primary USE-CASE of the PROP token is to incentivize real estate investing so everyone can have the opportunity to own and grow wealth backed by real property. $PROP Token does this in 4 ways…
- 1.Giving discounts on NFTs backed by real property - Buyers
- 2.Optimizing performance of every asset on the BlockPark Platform - Renters
- 3.Increase property yields using a shared token economy - Assets
- 4.Pay dividends in PROP tokens - Repeat
Play videos below for a detailed breakdown of each Use-Case.
1) Giving discounts on NFTs backed by real property - Buyers
2) Optimizing performance of every asset on the BlockPark Platform - Renters
3) Increase property yields using a shared token economy - Assets
4) Pay dividends in PROP tokens - Repeat
Rents, which are collected in fiat money, will be used to purchase $PROP tokens from the open market, similar to the way a public traded company buys back their own stock. The number of $PROP tokens purchased will vary on the net revenue collected and the current price of the token. The purchased tokens will then be distributed as a dividend to the NFT holders equal to the net revenue they would receive in fiat as an owner of the property their NFT is tied to. The property revenue provides the basis for the calculation of the yield. The amount of tokens being distributed is determined by the value of the token, but will always equal the property yield. Since the $PROP token has a fixed supply, the recurring purchase of tokens to distribute dividends will drive demand for the token. The use case will always be growing as each property is added to the platform.
Additional yield can be achieved when a DAO leverages the current property they own with a cash out refinance to acquire additional assets. This can happen in year 2 of owning the property, or when lending becomes available on NFTs.
An additional yield becomes available to NFT holders based on the property itself receiving a percentage of monthly rewards in $PROP tokens according to expectations. This is correlated to the supply and demand principle where the $PROP token use case is designed to increase with each new property added to the platform coupling the value of the $PROP token to the overall growth of the company. It comes in addition to the annual revenue being generated from each property. At the end of each year the additional yield can be calculated and built into the overall earnings of the property.
NFT owners of each property will vote on what to do with the additional yield. Paying taxes, owner draw, property upgrades, and even building additional housing are all potential outcomes made possible with each additional property yield in the BlockPark ecosystem.
$PROP Tokens can be used to purchase NFTs backed by real property at a discount. In this instance, the BlockPark model foresees several ways to grant additional benefits to investors. They get preferred access to properties for sale and are automatically granted a discount off the NFT listing price. The level of discount depends on the staking pool they are in.