The potential and transparency of true tokenization

Real Estate Transparency and Tokenization

Tokenization in general and the tokenization of “real-world assets” (so-called RWA) is all the rage. When we talk about tokenization, we usually focus on some of its characteristics (fractionalization, liquidity...), but tokenization goes much further. Perhaps its most relevant feature is transparency: tokenization allows a multitude of functions to be executed and automated in an unambiguous and transparent way. On a platform like Reental we can list different “smart contracts” (applications that work as they have been programmed, without the possibility of censorship or manipulation), such as:

• Crowdsale Agreement: this is the one we use to make the initial sale of tokens. This way you unambiguously tokenize something in a limited number of tokens.
• CWhitelisting Agreement: is that it limits interaction with a token to a type of user that has been previously validated. It is used so that only the wallets included in it can access the tokens if the regulation requires it.
• Revenue Sharing Agreement: we use it every closing of the month, to distribute returns among the token holders of the property. It automatically calculates the returns to be distributed for each wallet each month depending on what tokens you have, taking into account not only their quantity but also the origin of the product and the nationality of the investor (since it applies withholding by country)
• “Terminator” contract: it applies only when we close the sale of a property, and we execute the transaction that returns the capital invested to the user plus the capital gain in exchange for the tokens they had in their possession.

The key question is: why is the actual use of tokenization important?

Because without it, there would be no transparency, no automation, no scalability, and no accessibility. Everything that happens can be viewed in a public search engine. Everything is transparent, it's impossible to hide anything. Tokenization also automates processes and makes them efficient regardless of the number of users who participate.

And of course you can participate from any corner of the planet, meeting the requirements with a simple internet connection.
In addition, tokenization can be disrupted by different services based on DeFi or Decentralized Finance.

This is totally differential.

• Reinvest capital with a click and make use of compound interest, which can increase the return of a real estate asset by double (figures even higher than 20%).
• Have liquidity by selling your token to any other user, directly, without intermediaries.
• Being able to use your token as collateral to request a loan and thus boosts the liquidity of this asset without having to sell it, being able to increase returns to figures of around 30%).

In other words, with DeFi, we can increase the return on a tokenized real estate asset to double or triple its natural return..

In short, apply all the evolution that is coming to turn this simple investment product into a more profitable, efficient and secure product thanks to the addition of DeFi, which activates and reveals a potential yet to be discovered.

I invite you to continue reading and participating in this incredible ecosystem 🙂

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