WhitePaper Abstract

FracProperty aim to make real estate investment affordable and accessible to anyone within a well-defined regulatory framework, leveraging on transformational technologies that unlock value along every step of the real estate value chain and provide massive opportunities for the sector as a whole.  The new token economy offers the potential for a more efficient and fairer financial world by greatly reducing the friction involved in the creation, buying and selling of assets, especially assets that have been long-locked under the liquidity trap.  

The FracProperty Real Estate Token project encompasses the novel ideas of tokenization and digital asset management through decentralized ledgers, based on blockchain technology.  Our online platform is designed to overcome the main impediment of the traditional real estate market – the illiquidity of assets and uncertainty of risk profiles.  As more traditional private (and illiquid) assets are fractionalized and tokenized, markets can achieve optimal asset allocation at the retail investment level. To normalize the risk curve of the underlying assets, multiple properties can be aggregated into single pools which are then structured to offer tranches with varying return characteristics to cater to investors’ specific risk profiles. 

FracProperty Real Estate Tokens combine the technology of blockchain with the requirements of regulated securities markets to support liquidity of assets and wider availability of finance.  Tokenization of traditionally illiquid assets and the ability to freely choose risk/reward profiles will open up a new era of much greater personalization and customization in investment—an area that is increasingly relevant as investors seek for real asset-backed investments in an environment now inundated with cryptocurrencies that are lacking in intrinsic value. 

The key elements of FracProperty’s Real Estate Token eco- system are:

  1. Marketplace – which is a digital marketplace built on the blockchain that allows for transparent and efficient access to a new age of capital markets.  The marketplace will be where a multitude of selected individual and pooled properties and assets are issued, as well as provide a secondary token trading platform. 
  2. Asset-backed Token – provide users the choice of investing in single properties in the form of fractional tokens, or digital tokens in a professionally selected real asset pool (Tokenized Real Estate Investment Trust or tREITs). 
  3. FRAC Tokens – the native token of FracProperty’s platform, can be traded, utilized as a medium of exchange, and used as a store of value. FRAC tokens will incorporate multiple utility functionalities, including, but not limited to, redemption for asset-backed tokens, swift transfer of rental income globally, and community building purposes.  FRAC tokens are structured as “stablecoins” denominated in Australian Dollars, and pegged to an equivalent value of underlying real asset to reduce volatility compared to unpegged cryptocurrencies. 

For more information on FracProperty whitepaper, click here https://fracproperty.com/wp-content/uploads/2022/03/FracProperty-Whitepaper.pdf