How Tokenization Works

How Tokenization Works

Revolutionize Your Property Portfolio with Oases

Discover the seamless transformation of real estate into accessible digital assets with Oases. Here’s how our tokenization process unfolds:

1. Meticulous Property Selection

Each property is carefully chosen based on stringent criteria to ensure quality and potential for appreciation. We follow a comprehensive selection process involving:

• Market Analysis: Conducting extensive research on market trends, economic indicators, and local developments to identify high-potential areas.

• Property Evaluation: Evaluating potential properties for their condition, location, and potential for rental income and appreciation. This involves site visits, property inspections, and consultations with local real estate experts.

• Risk Assessment: Performing a thorough risk assessment to identify any potential legal, environmental, or financial risks associated with the property. This ensures that all selected properties meet our high standards for investment security.

2. Token Pre-Sale

Before the property is acquired, it goes through a 30-day token pre-sale within the Oases app, allowing eligible community members to participate. The pre-sale process includes:

• Initial Token Offering: Pre-sale tokens are sold at an initial token offering price of $100 per token.

• Minimum Purchase Requirement: Investors must purchase a minimum of 100 tokens, equating to an initial investment of $10,000.

• 30-Day Window: The pre-sale lasts for 30 days, during which community members can buy tokens to support the acquisition.

• Total Acquisition Costs: The total acquisition costs, including purchase price, legal fees, and initial management costs, are calculated to determine the total amount needed. This amount will determine the number of tokens initially minted to cover the costs.

• Success Criteria: If the pre-sale is successful and all necessary funds are raised, the property is then acquired and tokenized.

• Token Exchange: Successful pre-sale tokens are automatically exchanged 1-for-1 with actual property tokens, granting investors their fractional ownership.

• Refunds for Unsuccessful Pre-Sale: If the pre-sale is not successful, the pre-sale tokens are automatically burned, and investors receive their cash back into their accounts.

Example: If the total acquisition cost for a property is $600,000, including purchase price and associated costs, Oases will mint 6,000 tokens (6,000 tokens x $100 = $600,000). Investors can participate by purchasing these tokens during the pre-sale.

3. Secure Acquisition

Once the pre-sale is successful, the property is acquired and held under a corporate structure, providing a clear and legal framework for ownership. The acquisition process includes:

• Legal Compliance: Ensuring compliance with local laws and regulations, including property registration, tax obligations, and zoning laws. We work with local legal experts to navigate any legal complexities.

• Corporate Structuring: Establishing a special purpose vehicle (SPV) to hold the property. This SPV is formed independently of Oases, ensuring transparency and protecting the interests of investors.

• Due Diligence: Conducting detailed due diligence to verify the property’s title, ensure there are no encumbrances, and confirm that all necessary permits and approvals are in place.

4. Tokenization

Ownership is converted into digital tokens, each representing a share of the property. The tokenization process involves:

• Smart Contracts: Developing smart contracts on the Arweave blockchain to automate the issuance and management of property tokens. These smart contracts ensure that each token is a binding representation of property ownership.

• Token Distribution: Issuing tokens to investors based on their investment amount. Each token grants direct ownership rights, including a proportional share of rental income and proceeds from potential property sales.

• Governance Votes: Each token represents a governance vote, allowing token holders to participate in key decisions, such as voting on whether to sell the property in situations where it is underperforming.

• Ownership Documentation: Our protocol automatically keeps an updated ownership document, reflecting the latest token holders and their respective holdings. This document is available independently from Oases, providing a documented and updated proof of ownership. In the unlikely event of a company shutdown, the property can be sold, and all investors can receive their returns.

5. Blockchain Integration

Utilizing Arweave blockchain technology, we ensure that every transaction is secure and transparent. The blockchain integration includes:

• Immutable Records: Recording all ownership and transaction histories on the blockchain. This ensures that records are tamper-proof and can be verified by investors at any time.

• Transparency: Providing investors with access to a transparent ledger where they can track their investments, view transaction histories, and verify ownership details.

• Security: Leveraging the security features of the Arweave blockchain to protect against fraud and hacking. This includes encryption, decentralized data storage, and consensus mechanisms to validate transactions.

Operational Management and Administration

• Administration Agreement: Oases operates the property under an administration agreement, granting us the authority to employ management companies, accountants, and lawyers to handle all aspects of property administration, including maintenance, tenant relations, tax administration, and legal compliance.

• Professional Management: Ensuring consistent and professional management of the properties, freeing token holders from day-to-day management responsibilities.

Oases’ Stake and Liquidity Provision

• 20% Ownership: Once tokenized, Oases aims to purchase and maintain ownership of 20% of the tokens. This ensures that Oases has a vested interest in the success of each property and can provide liquidity if required.

• Liquidity Support: The retained tokens can be used to facilitate liquidity in the market, helping to stabilize token prices and ensure smooth transactions.