TL;DR

Today I will share a real estate RWA project on the Binance chain. I have talked about several real estate projects before. I also shared a real estate project parcl on the SOL chain some time ago. Real estate is a very huge industry in the real world. Once it can be done on the chain, the market value will be straightforward to grow, so I am very concerned about this sector. Today’s project is Landshare. It has increased 5-6 times in the past month, but the current market value is only 20 million US dollars. Overall FDV is only about 60 million, so the potential is still very large.

OverviewLandshare is a blockchain-based tokenized real estate ecosystem that enables seamless investment in real-world assets (RWAs). Through Landshare, users can own a portion of real-world real estate by holding Landshare RWA tokens (LSRWA). Each property in the ecosystem is managed by Land and transfers net cash flow directly to RWA token holders. Landshare also offers a range of DeFi features, including NFTs, staking vaults and DAO voting via LAND utility tokens.

Real Estate Tokenization-The Landshare platform, Two Tokens, Multiple Ways to Make Money, provides two different tokens - Landshare Token (LAND) and RWA Token (LSRWA). Each token plays a different role in the ecosystem.

1. LAND Token LAND token is a platform governance and utility token that can be used as a means of exchange, voting, payment and access. Users can stake it in any DeFi vault to earn additional rewards.

2. RWA Token Landshare RWA Token is the easiest way to invest in real estate on the blockchain! Each token represents ownership of a real estate asset. By holding RWA tokens, users will become co-owners of the Landshare RWA pool and benefit from property appreciation, rental income and other cash flows.

How to invest in real estate through Landshare

①Landshare NFTs: Landshare NFTs are virtual 3D renderings of real-world properties available in the Landshare RWA token pool. By managing and upgrading users’ NFTs, users can earn additional rewards for staking their RWA tokens. After purchasing RWA tokens, users will receive NFT points. Earn 1 individual NFT point for every RWA token purchased. Once you have NFT points, visit the minting page. The more NFT points loaded into the NFT, the more LAND can be obtained from the NFT. For every 4 NFT points spent, the user’s NFT will receive 1 harvestable LAND. Next, press the mint button and sign the transaction to mint the user’s new NFT. Each NFT has a certain amount of harvestable LAND rewards. Users can increase the number of rewards they can harvest by spending NFT points on new or existing NFTs.

② Staking RWA tokens: Each real estate NFT serves as a revenue multiplier for the RWA tokens staked by the user. The more RWA tokens a user stakes, the more rewards the user can receive!

③Upgrade the user’s NFT: To maximize the user’s rewards, it is crucial to upgrade the NFT property and increase the user’s revenue multiplier.

NFT ecosystem: The NFT ecosystem leverages LAND tokens in several key ways:

Marketplace: NFTs can be freely traded between users, using LAND tokens for payments. Every market transaction generates a 5% cost.

Minting: In the updated NFT minting system, each new minting will levy 5% LAND fee. Energy: To upgrade and repair NFTs, users must generate energy resources. Additional energy can be purchased with LAND via the Resources tab.

Slots: Each NFT must be placed in a slot to be considered active. Users can purchase additional slots for 15 LAND.

Advanced upgrades: Each NFT property can be enhanced with advanced upgrades, and LAND is required to purchase advanced upgrades.

RWA fees and paymentsInvestment in real-world assets is achieved through RWA tokens. However, LAND tokens play a crucial role in the process of acquiring and trading RWAs on Landshare. To purchase RWA tokens, users must pay with 90% stablecoin and 10% LAND token, calculated based on the total USD value of the purchase. For example, if a user wishes to purchase $1,000 of RWA tokens, the total purchase price will be $900 of stablecoins and $100 of LAND tokens. RWA tokens can also be sold on demand through a new fixed-price liquidity pool based on the value of the underlying asset. When initiating these sales, a 1% LAND fee will be charged. For example, selling $1,000 of RWA tokens will incur $10 in LAND token fees.

How Real Estate Tokenization Works

Tokenization is the process of creating digital tokens on the blockchain that represent ownership of various real-world and digital assets. Real World Assets (RWAs) cannot be directly tokenized, so they are placed in legal entities such as Limited Liability Companies (LLCs) or legal entities. In some jurisdictions, ownership units of these entities can be converted into tokens on the blockchain. Through this process, each token represents joint ownership of a legal entity and thus indirectly represents the asset itself. Landshare Holdings LLC is a Wyoming limited liability company that holds all Landshare RWA assets. When purchasing and holding RWA tokens, the user actually buys shares of the holding company, thus becoming a joint owner of all assets. The process of tokenizing assets on Landshare can be divided into the following steps:

1. Set up a legal entity dedicated to owning the property to be tokenized.

2. The legal entity converts its shares into special security tokens.

3. Landshare LLC provides securities to investors and conducts Regulation S issuances.

4. Investors complete KYC and AML checks, sign the purchase agreement, and purchase tokens.

5. Landshare manages properties on behalf of investors.

6. The cash flow generated by the property is sent to token holders in the form of BUSD tokens. Investors can also benefit from appreciation in the underlying asset.

7. Investors can sell their shares to other whitelisted users or back to the holding company (restrictions apply).

Token economy

The upper limit of hard minting of LAND tokens is 10 million. Because of the burning mechanism, the circulation volume will change. Here is the supply base as of February 2024:

Total supply: 4,527,348

Circulating supply: 4,495,919

Supply cap (10 million minus burned tokens): 9,973,659

Daily issuance: ~2050 remaining unminted tokens

It will be used as staking rewards (97.5%) and allocated to the DAO financial fund (2.5%) over time. Currently, approximately 2,050 additional coins are issued every day. This number can be modified at any time through Landshare DAO. In terms of token distribution, the reward pool is 66%, the seed round is 10%, the team is 15%, the market is 5%, and IDO is 3%.

Governance

LAND tokens represent voting rights in the Landshare DAO, which is the platform’s main governance mechanism. The DAO and its voters directly control key elements of the platform, including:

Staking Rewards: The Landshare DAO directly controls the proportion of newly minted LAND tokens allocated to each staking vault.

Issuance Rate: In addition to the distribution of reward tokens, the DAO can increase or decrease the total number of reward tokens minted each day.

Fiscal Fund: of newly minted tokens, 2.5% is allocated to the DAO financial fund. The DAO has the right to use these funds for grants, burning, marketing bounties, or anything else the community can think of!

Burning mechanism: The LAND token has several mechanisms designed to remove the token from the supply. Since the minting rate is set at 10 million tokens, each burn will effectively permanently reduce the LAND supply cap. Some examples of burning mechanisms include:

RWA Token Purchase: Each RWA Token purchase will pay10% of LAND tokens, all tokens in it will be burned.

Optional DAO Burn: The DAO can vote to burn any amount of tokens from its vault fund, which includes 2.5% of all generated tokens and Auto LAND staking fees. In conclusion, this also qualifies as a real estate project on the BSC chain, with gameplay somewhat complex and resembling a game. Moreover, there is suspicion of token nesting between tokens, which is worth criticizing. By linking tokens to shares of real companies, it actually addresses legal regulations in various countries. However, the downside is that it can only purchase local real estate and is thus limited. Currently, only three properties are seen on the official website, totaling around $500,000, so it’s still relatively scarce. Therefore, the main gameplay for now is buying tokens to earn money, with staking returns alone at 13%, plus NFT points earnings, totaling at least 20% overall return, which is quite attractive.

Furthermore, its token is still on the rise, benefiting from the RWA trend, and its current market value is still low, at only $60 million FDV, so there is still significant potential, and it doesn’t seem unlikely to reach a market value of $100-200 million for a real estate project. However, the project cannot rely solely on token economics and must engage in real RWA real estate.

Disclaimer：

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