A Globally Compliant Legal Framework for Real Estate Asset Tokenization

Propbase employs Wyoming's globally compliant DAO LLC framework for real estate tokenization, ensuring efficient blockchain integration for global investor engagement and transparent governance.

In Wyoming, DAO LLCs have been increasingly adopted for real estate tokenization since 2021, offering a globally compliant framework. This innovative approach merges the flexibility of U.S. common law with the efficiency of blockchain technology. Each real estate asset is tokenized through a newly formed DAO LLC, where governance is managed either by its members or through smart contracts.

To raise capital for these ventures, DAO LLCs issue property tokens, representing ownership shares within the DAO. Investors must comply with regulatory requirements regarding cryptocurrency ownership to participate across jurisdictions.

Once funded, the DAO LLC acquires approved real estate assets on behalf of its members. This acquisition grants property token holders fractional ownership in the property through their DAO membership.

Decisions within the DAO, such as property management and governance proposals, are proposed and voted on by its members. As the property generates income, property token holders receive proportional returns based on their holdings, reflecting the success of the venture.

The DAO LLC established in Wyoming allows a limitation of personal liability, as the DAO LLC members are not personally liable for the LLC's debts or legal liabilities.

This approach not only democratizes real estate ownership but also integrates blockchain's transparency and efficiency into traditional asset markets, offering a globally compliant model for innovative investment opportunities.