Fractionalized NFT

RELNFT (FNFT):

• Fractionalized real estate enables buyers to purchase a small portion of a property, making a property more accessible.

• Fractional ownership over real estate unlocks access to the real estate market completely novelly With the right design, fractionalized real-estate tokens could allow savvy investors to build custom-made portfolios of different real-estate assets, prospective homebuyers to make incremental steps to live in—and own—their desired home, and companies to create tailored real-estate products. For example, Relcko aims to help businesses fractionalize properties through a token-related solution built on Ethereum, BNB, Solana, Polygon and IPFS

Tokenized real estate​

• Tokenized real estate is when a real estate property or its cash flows are represented as a blockchain token (or tokens) to increase liquidity, streamline processes, and enable digital ownership.

• In general, the use of blockchain technology for tokenized real estate requires the use of either non-fungible tokens (NFTs) or fungible tokens, depending on the goal and what’s being tokenized. NFTs are useful when a property—or groups of properties—is being considered as a whole (i.e., one or more properties, one token). Fungible tokens are useful for fractionalizing a whole into parts (i.e., one or more properties, 100 tokens).

• According to KPMG, “tokenization is ideal for owners of a single asset or a small portfolio of assets, due to the significant reduction of time and cost in offering investors the right to participate in fractional ownership and subsequent secondary trading.”

How Could Tokenized Real Estate Work?:

• In general, tokenized real estate requires that there is a firm, trust-minimized link between the digital asset (token) and the underlying physical asset (property). RelNetwork is a Web3 services platform that supports developers and entrepreneurs aiming to bridge the gap between blockchains and real-world assets (such as real estate) by providing best-in-class connectivity tools.

• This section will outline different possibilities across the residential and commercial real estate markets to provide an idea as to how real estate might be tokenized. How Could Tokenized Real Estate Work?

• • Note: All the examples below are largely future-facing, and illustrative, and have not been implemented at scale. Specifically, considerations around the verification of home ownership and any related practical issues are not addressed in these examples.