The Right Way to do Fractional Ownership
As soon as Ethereum became functional, many people began to ponder an era where poverty could be combatted with the benefits of blockchain technology. Concepts like banking the unbanked and fractional ownership began to surface. Much of that fervor has become a lot more restrained now as people are beginning to understand the complexity of the proposed concepts.
Banking the unbanked is in the works but most projects have made little to no progress. Fractional ownership is a different case as it's an that is easy to make real but the utility of it isn't exactly what people had expected. It's quite possible to fractionize anything and split its ownership to thousands or even millions of tokenholders, but its either extremely difficult or impossible for all of them to use whatever has been split.
Global REIT
Fractional ownership can be useful, but its utility was misconceived. Splitting ownership makes it difficult to make the split thing usable by the token holders. Instead, it's very easy to split the profits that can be derived from the split thing if it is used as an investment vehicle. In this manner, fractional ownership makes it possible to make people become shareholders of more than just companies as any asset could be fractionized and distributed to any number of token holders.
This concept is being applied by a new blockchain project called Global REIT.
Global REIT is a tokenized fund that will invest in real estate. Investors buy tokens which are backed by the fiat value of the real estate bought with the funds they give to the fund. While it is not possible for tens of thousands of people to live in the tokenized real estate, they can share the profits the real estate earns.
This way each real estate functions as an independent company. The token holders are quite like the shareholders of the tokenized real estate. Global REIT's tokenized real estate portfolio will start with a hotel, but there aren't any limits on what the portfolio could eventually encompass. With enough token holders, the company could fractionize anything from island resorts to an airport, and token holders will be like the shareholders of each of the tokenized real estate assets, collectively enjoying the money made by the real estate.
Global REIT Essential Links
🌐 Website: http://www.globalreit.io/
💡 Whitepaper: https://globalreit.io/front/whitepaper/Global-REIT.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=3341986
💻 Telegram: https://t.me/GlobalReit
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Nice insight - The project seems quite interesting..do you reckon such a projects success is quite dependent on the law of the land too ?
Actually, that's a very good question.
This fund is very well-timed since Dubai released pro-REIT laws only 2 months ago.
Thanks for sharing ! that's news :) of all Dubai - will certainly check it out :)
Yeh, plus rental returns are some of the highest in the world here. The only drawback is that there's a 4% initial purchase fee owed to the government.
I always wanted some fractional shares. I'll be buying as soon as I can.
The ICO is now over, however, it should list on an exchange soon :)
great idea and project
It'd be great if fractional ownership of real estate can become successful.
Gut post... danke schön 💗
You're welcome :)
interesting project..
thanks for sharing useful information with us!
You're welcome :)
And yes, this might finally be the right way to do fractional ownership.
Just read a summary about REIT...There are lots of benefits an investor in real estate can get like when purchasing shares of REIT, it gives the investor exposure to the real estate market. @hatu
True, this can be a way for crypto investors to exit into some investments in real estate.
This looks super interesting. I cant say it enough but institutions have such a different playing field compared to retail investors. REITs are so common otherwise and are also used to hold land on which functional assets are built.
Imagine having localised token based reits. An average person may not know every real estate market but will have a fair idea of the local area, ownership etc. I think this looks very promising.
The second note relates to me quite well. The REIT's first asset is somewhat close to me. I am quite excited to see how the project unfolds.
And yes, REITs certainly have access to a seperate set of facilities that we can't gain as individuals. That's why I feel creating a tokenized REIT is the right way to do fractional ownership.
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So pleased to know what I've built an engaged following; thank you Khirud.
I started a new job bud and had a lot of catching up to do in the first week since my role had been vacant and the position's tasks had really stacked up. Hopefully, I can post more consistently soon :)
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@hatu, Nice project and Government of Dubai taken a good decision for people funds.
Real estate is the main economic driver in Dubai. Laws are naturally pro-real estate growth.
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Thank you Rajat, I'm truly humbled.