7.0 $PROPS: Tokenomics
Last updated
Last updated
The PROPS token has a fixed supply of 1.2 billion tokens. Of the total fixed supply, 20% will be crowd base funded at a fixed value, 35% of supply will be locked in the rewards protocol, 12% allocated to the company, 3% to the foundation, 5% for seed capital, 5% for advisors, 10% for marketing, and 10% for liquidity pools. Each allocation has a tiered unlocking period up to 60 months from the completion of the crowd base funding closing date.
The entire supply of tokens will be issued at the beginning of the sale process. New tokens cannot be minted and existing tokens cannot be burned. Value will rise as demand increases as PROPS tokens are required to utilize the Propbase platform regardless if accessed by a third party or other entities.
The PROPS token's main utility feature is to facilitate processing of transactions via. smart contracts that record a specific data point, which subsequently can be verified on the blockchain by all parties. PROPS tokens are built on the Aptos blockchain, with low transaction fees taken into consideration. The Propbase platform requires the user to interact with smart contracts on the Aptos blockchain, with fees paid in the PROP tokens. Users who do not have PROPS tokens must buy them on an exchange in order to participate in the Propbase marketplace, registry, and transaction platform.
Benefits of PROPS to the Propbase platform:
A uniform method of settlement on the Propbase platform.
A decentralized platform and registry requires a barrier to entry to initiate a transaction, otherwise there is potential for system overload from spam and DOS attacks, preventing legitimate transaction requests from reaching validators in the network.
A rewards protocol designed to bring new users to the platform and educate users on the benefits of tokenized real estate asset ownership.
Initially, 35% of the supply will be allocated to the Rewards Protocol, in addition to 5% of all fees collected in PROP tokens generated by transactions on the platform. The rewards protocol will be used to incentivize new users to the platform. For example, when a user completes an investment, rewards will be provided and early adopters of the Propbase marketplace will benefit.
Additionally, Propbase has developed a staking platform to rewards existing PROPS holders the ability to earn rewards in props for staking their holdings, locking up a portion of circulating supply, increasing scarcity, and benefiting long term growth.
A total of 12% of the total fixed supply is intended for the company, and has established lockup conditions for a scheduled token release. See description below:
Upon unlocking, the company reserves the right to use the sale proceeds at its sole discretion. The intended purpose is for, but not limited to, administrative, legal, and development expenses for further platform and security enhancements, version updates, and continuous workflow by full-time employees. As utility increases, and with it, the native token value, the company intends to further scale team size and development capabilities to grow the platform.
The overall objective of Propbase is to make property investment accessible to everyone and bridge the gap between digital and physical asset ownership. The establishment of a foundation will enable the funding of a separate community based team, volunteers, and strategic individuals who can contribute to this process.
The 3.0 % token unlocking schedule will be identical to the company unlocking schedule outlined above in section 7.4 and can be used by the foundation as follows;
Support the adoption of Propbase and blockchain -based tokenization and fractionalized ownership rights.
Develop and localize playbooks, educational content, and processes for onboarding of local and regional areas where tokenization does not have a legal infrastructure.
Maintain a dedicated full-time team that supports the community and works towards the foundation's mandates.
The foundation will be established by the company six months after the end of the crowd base funding closing date.
