CitaDAO Platform Token Value Accrual
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How does CitaDAO token derive its value? The CitaDAO token has multiple uses within the CitaDAO ecosystem. But before we jump in, let’s clarify that there are two classes of tokens associated with the ecosystem. There is the CitaDAO token which is the CitaDAO platform token, and there are the unlimited Real Estate Tokens (RETs) on the platform, each representing a separate Real Estate property. As long as a real estate property successfully lists on CitaDAO, an associated NFT and RET ERC20 token contract representing the tokenized real estate will be created. This article will focus on the CitaDAO token and its uses.
The primary uses of the CitaDAO token are
1. Governance of the platform and how it grows as a DAO
2. Benefits from future real estate listed via CitaDAO
Let’s dive in-depth on each of these uses.
Governance via CitaDAO
Let’s talk Governance — with your CitaDAO tokens, you decide how the platform grows, how it allocates community treasury tokens for future CitaDAO primitive projects, and how much rewards to distribute to prime real estate properties that want to list on CitaDAO. You get to decide how much yield farming incentives should be allocated for each building in order to incentivize liquidity incentives, and even help decide which other projects are awarded grants to build a more robust ecosystem for the RET real estate tokens. These are just some of the examples of governance actions holders can participate in.
Ownership of Real Estate Tokens via CitaDAO
As more real estate lists and successfully tokenizes on CitaDAO, 2% of each property related Real Estate Tokens will be allocated to the DAO. Imagine if Binance took a 2% allocation of all tokens listed on their platform, as they do for some but not all tokens. We believe real estate in a tokenized form on-chain has a greater utility than most other cryptocurrencies. Given the large volume of high quality real estate, we believe that eventually, much of it will inevitably be tokenized as all asset classes move on-chain. CitaDAO is well positioned to benefit from this transition, and if real estate indeed moves on-chain as we predict, CitaDAO will function like a REIT that holds 2% of global real estate. As mentioned in this previous article, property tokens will benefit from the underlying real estate.
Primitives built on the CitaDAO foundation
We will discuss this in-depth in a separate article, however, we believe that CitaDAO is just the first building block of a much larger ecosystem. Just as Ethereum has created an ecosystem that includes DeFi, artwork, culture, and DAOs, CitaDAO is building and enabling an ecosystem of DeFi products that revolve around Real Estate. These primitives will further support the utility of CitaDAO and its ecosystem of RETs. As innovative products are created, such as the MakerDAO for RETs that allow collateralizing RETs to borrow a stablecoin, the narrative that Real Estate has more utility on-chain, will become more compelling and obvious.
Tokenizing all things is becoming a reality — and we are here for it.
About CitaDAO
CitaDAO.io is a Decentralized Finance (DeFi) platform for Real Estate to be tokenized on-chain, built on the Ethereum ecosystem. CitaDAO aims to solve the lack of liquidity, access limitation, and lack of composability in existing real estate ecosystem by creating interoperability with other DeFi applications/primitives that operate on the Ethereum protocol. Real estate token allows the community to diversify their portfolio on-chain to generate stable yield through real-world assets that have constant liquidity through AMM. Interested to build the future with us?
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Disclaimer: The information contained in this communication is based on sources considered to be reliable, but not guaranteed, to be accurate or complete. This communication should not be relied upon or the basis for making any investment decision or be construed as a recommendation to engage in any transaction or be construed as a recommendation of any investment strategy