Tokenization process
bAsset token holders will become the owners of the property owned by their DAO LLC, which has the property's title deed registered to it. DAO LLC has a separate property ownership and legal structure which protects members and holders of bAsset tokens.
Tokenization is a process of transferring ownership of real estate to blockchain. Binaryx provides property owners with a system of oracles that allows them to tokenize their property. The process works as follows:
Property owner registers an account on Binaryx, completes KYC procedure and fills the listing form.
The system generates a request to an Audit Oracle, whose goal is to perform property compliance. Audit Oracle contacts the owner and arranges an audit.
After a successful audit is performed, the Audit Oracle and the owner agree on the property price and listing period. The audit oracle fills the audit form, and the property owner signs the intent agreement. The purpose of the intent agreement is twofold:
It ensures that the owner does not sell or damage the property during the listing period.
It ensures that property ownership will be transferred to the Property DAO if enough funds are raised during the listing period.
Having received the audit form and the intent agreement, Binaryx Platform:
Calls a smart contract that creates a Property DAO, series LLC company on the blockchain.
Changes property listing status on the Binaryx Marketplace, allowing users to book property tokens.
After the property is successfully listed on the Binaryx Marketplace, one of two scenarios happens:
If enough funds were raised during the listing period, the property owner again meets with the Auditor Oracle and signs the final agreement with a notary. Then:
The legal status of the property has changed, and it now belongs to Property DAO (see legal page).
A smart contract issues bAsset tokens of the property, which are sent to users who have booked them. These users now control the Property DAO, effectively owning the property.
The funds that were collected during the listing period are divided into four parts:
85% are paid to the property owner.
Binaryx Platform collects 8% from the seller. These funds will be afterward distributed among the holders of the BNRX tokens.
1% is paid to the Audit Oracle.
6% are collected to form a Repair Pool, which the Management Oracle can use to solve potential property issues.
If enough funds were not raised during the listing period, the property owner can either prolong the listing period or back out of the deal. In the latter case, all the funds raised during the listing period return to the users who booked the property.
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