PropX DAO :- Property Exchange DAO

[IMPACT] Please describe your proposed solution.

PLEASE READ THE ATTACHED WHITE PAPER ALONG WITH THE DESCRIPTION BELOW.

Property Swap

Real Estate is an illiquid asset, which means that buying and selling the asset is a lengthy and bureaucratic process; ownership does not swap hands quickly. PropX is changing that. We will make this asset class as liquid as possible by providing an instant swap feature in our ecosystem.

PropX is the first platform in the world to provide a property swap feature that will let customers swap their property for crypto. Liquidity for the Property Swaps will be provided by the PropX investment fund.

Real estate investors from all over the world can join the PropX investment fund. Once they deposit their crypto (ADA) in the fund’s investment pool, they will get LP tokens for their investment.

PropX will have a state of the art, Artificially Intelligent valuation algorithm that will use data oracles from all over the world, covering majority real estate markets. Considering all the aspects and metadata of the property the AI valuation algorithm will come up with an accurate market value of the property.

In order for a property to be eligible for instant swap, it will have to be sold for 10% lower than the market price generated by the AI valuation algorithm. Once the property is swapped, the ownership will be fractionally distributed amongst all the liquidity providers of the investment fund. The property will then automatically be listed on the PropX marketplace at 5% below market price generated by the AI valuation algorithm. The instant 5% gain in property equity will incentivize investors to invest with the PropX fund. 

Fractional Ownership of Asset

The PropX protocol allows real estate assets to be fragmented into an unlimited number of shares. There is no cap on the fractionalization of assets. Fractional ownership will let a wide spectrum of users of every budget enjoy the benefits of investing in real estate. The tokens can be easily fractionalized, which means owners could sell fractional shares of their apartments. Tokenizing real estate will make it easy to issue and sell these assets at a fraction of the cost that are needed now.

Auctions

Unique lifestyle real estate is the epitome of luxury. We let users on PropX run auctions on such properties. Just give a starting price and the bidding war will start. Want to sell your Malibu beach house? Put it on auction with us. 

Manager Roles

Managing a property is the most difficult task about owning any real estate asset. The PropX ecosystem makes it easy by creating roles for managers who will be managing the property. The manager can be an individual or an entity. All the managers will be peer-reviewed and will get rewards staked by the owners in the management smart contract. Owners will have to stake annual management fees in the management smart contract if they opt for a manager. Standard management fees are 2% of the property value annually. A manager with good peer-review can add a premium on the management fees. The smart contract will release the reward on a monthly basis only if the manager has received validation by at least 75% owners of the property. If the management does not do a good job and less than 75% owners give validation, the smart contract will be terminated. The current month’s reward will be distributed in the PropX DAO and the rest of the rewards will be given back to the owners. The manager will be responsible for maintenance, security, and occupancy of the property. 

Rental Contract

PropX has a rental agreement feature that will create a smart contract between the landlord and the tenant. Once an agreement is set, the security deposit and minimum 2 months rent is locked in the smart contract by the tenant. At the end of every month, the tenant is supposed to top-up the smart contract. If a tenant is unable to do so for 2 consecutive months, the contract will be terminated and the tenant will lose the security deposit to the landlord. A tenant can also lock in a year’s rent which will be given out to the landlord every month. Anyone can see the history of tenancy of a particular address in the block explorer and understand if the tenant is trustworthy or not.

Decentralized Mortgage

The current process of taking out a loan for home ownership comes with a lot of regulatory oversight and due diligence from the bank side to make sure that the person taking out the loan will also be able to pay the loan, including interest, back. PropX will let anyone from any part of the world get a loan. There are certain requirements for getting a loan on PropX, one will have to put down a minimum 25% upfront payment and monthly 1% interest. Each loan period will be 3 years. A PropX interest fund will be created where people can stake their idle ADA for a 12% assured return with a lock in period of 36 months. If the mortgage is not paid in time, the contract will be terminated with equity distributed and the property automatically listed on the market for sale at the buying price. This will incentivize investors to stake in the interest fund and create more liquidity for users who want to take a loan for their property. If a user does not want to get a loan from the fund, one can always find co-owners for the initial purchase of their asset and then gradually buy them out.

Decentralized Insurance

There will be an insurance community, inside the PropX community. The insurance smart contract will work in a way that anyone who opts to take an insurance will be depositing a monthly premium in the smart contract. This premium will be locked in the smart contract. Individuals will be insured from an accident, fraud, robbery or larceny on their asset mentioned in the smart contract. Once the oracles confirm the victim, they will be compensated for their loss from the insurance smart contract.

Inheritance

Users can create a smart contract with multiple addresses that will be executed after the user's demise. Once the oracles confirm the demise of the individual, the smart contract will be executed and the properties will be distributed amongst the specified heirs.

Global Trading

The PropX real estate tokens may be eligible for global trading. In the future, an investor in Spain could easily buy fractional tokens in an office building in Chile with a few clicks. An investor in Japan could fund a private apartment building in Kenya. Opening up global markets adds even more liquidity and provides new opportunities for entrepreneurs and investors alike. This trend might make it feasible to buy fractions of a property in a foreign country that were previously much more difficult to obtain. 

PLEASE READ THE ATTACHED WHITE PAPER ALONG WITH THE DESCRIPTION ABOVE.

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

Property ownership is one of the main building blocks of the society. When we all are trying to build the new world order, revolutionizing real estate is a big stepping stone towards it. An organization is required to maintain order is this industry. Today governments play that role. Like many things that has the government involved, even property ownership is very slow, bureaucratic, complicated and limited. Unfortunately, the conventional way of keeping record has very limited uses and is highly centralized. When we decentralize our property records, we automatically unlock a dozen of features. To make this possible, we will have to replace the traditional organization responsible with a modern, efficient and effective one. That's where the PropX DAO comes in. The decentralized autonomous organization that will make the world of real estate more open, efficient and unlock many possibilities.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

Data Oracles

The biggest challenge in tokenizing real estate is to connect the smart contracts with data from the outside world and vice versa. It is very important to form a network of oracles from every part of the world who will be feeding data from every major city in the world into our smart contracts. Smart contracts will be working based on the data provided by multiple trustworthy decentralized oracle networks. 

Liquidity Generation

For instant swaps and loans to work, the ecosystem needs to have ample of liquidity. One of the major challenges will be to add that liquidity to the ecosystem for smooth operations of all the features.

Legal Status of DAOs

Another challenge is registering the DAO as an entity. For the beginning, the DAO will be registered in Wyoming. After initial incorporation, we will be complying in various countries that are coming up with crypto friendly laws, like Marshall Islands, the UAE, Lithuania, Estonia, etc. This will let us cater most of the world and comply with the regulations.

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

2022 -

• Data Oracles Generation
• Launch of PropX DAO
• Users can Start minting Real Estate Assets on PropX registry
• Users can fractionally distribute ownership of assets

1st Half 2023  -

• Launch of MVP with instant Swap feature
• Property Auctions go live
• Addition of Mortgage Feature
• Launch of Decentralized Insurance

2nd Half 2023  - 

• Launch of Manager roles
• Inheritance feature is added
• Rental Contract feature is added.

[FEASIBILITY] Please provide a detailed budget breakdown.

Technology development (6 months):-

Full Stack Blockchain Developer :- 6 * $4000

Haskell Developer :- 6 * $6500

Data Oracle Generation Setup (6 months):- 6 * $2000

Marketing (3 months):-

Investor relations :- 3 * $1000

Social Media Managers :- 3 * $1000

Ad and influencer Campaigns :- 3 * $2000

[FEASIBILITY] Please provide details of the people who will work on the project.

Tarun Karamchandani :- Founder and Lead developer

The team consist of two groups.

One is the tech team that will be responsible to build and deliver the product. Tech team will be hired with a bunch of developers already shortlisted.

Other is a highly reputed real estate firm based in Dubai. This team will handle marketing, real estate listings, developer relations, investor relations and Data Oracle generation. Tie up with the real estate firm is already done.

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

After the initial funding and the product getting ready, we will be running token sales to generate liquidity. If the token sales are successful, we will not return to catalyst in a later round. If it is not successful, we might come up with a proposal on catalyst to raise the required liquidity.

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

• Number of Properties Listed
• Liquidity available for instant swap
• Accuracy of Market Price Evaluation
• Daily transaction volume
• Number of unique users
• User Satisfaction

[AUDITABILITY] What does success for this project look like?

For example, Someone from New York has approached me with an amazing investment opportunity in his business which will offer good returns. I own a villa in Italy. Within minutes, I swap my villa for ADA and send my investment to that company. This is what the success of PropX looks like. Anyone from any part of the world, will be able to move his illiquid assets instantly. Other success of the project will be the ability for users to invest in the real estate market with as little as 1 ADA by buying fractionalized assets. The success of PropX will result in complete revolution in the dynamics of the current real estate industry.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

The proposal has not been funded previously.