Whitepaper November 2017, Version 2.1
Denis Petrovcic, Viktor Brajak
Fr acti o nal co m m e rci al re al e s tate m ar kets w i ll lowe r the e ntr y b ar r i e r and o p e n acce s s to d i re ct C RE i nve s tm e nts fo r anyo ne w i th an i nte r net co nne cti o n. B l o c kc h a i n te c h n o l o gy a n d sma r t co nt ra c t s a re a l re a dy t ra n sfo r mi n g t h e way we use t h e wo r l d w i de we b . As we t ra n si t fro m a n i nte r n et of i nfo r mat i o n to a n i nte r n et of va l ue , n ew a n d e st a b l i sh e d n et wo r ks w i l l evo lve i nto de ce nt ra l i ze d p e e r- to - p e e r va l ue exc h a n ge ma r ket s. Wi t h gl o b a l co mme rc i a l re a l e st ate va l ue d at ro ugh ly 5 0 t r i l l i o n U S D, fra c t i o n a l C RE i s set to b e co me o n e of t h e b i gge st o n l i n e exc h a n ge ma r ket s, a s to ke n i z at i o n a n d fr i c t i o n l e ss t ra di n g i n c re a se l i q ui di t y, a n d t h i s a dde d q ua l i t y w i l l un l o c k n ew va l ue of t h e un de r lyi n g a sset . B l o c ksq ua re i s deve l o p i n g t h e n e e de d i nfra st r uc t ure fo r t h e fo re se e n fra c t i o n a l co mme rc i a l re a l e st ate ma r ket .
Blockchains will UPGRADE networks TO markets To understand blockchain one must first understand society. 1 / Bl o c kc h a i ns wi ll rep la ce net works wit h market s. 2 / H u m an s a re the netwo r ked spe cies. Th e f irst spe cies to n et wo r k ac ro s s geneti c b o u n daries an d t h us se ize t h e world. 3 / Net wo r ks a llow u s to co o pe rate wh en we would ot h e rwise go i t al o n e . And netwo r ks a llo c ate t h e f ruit s of our coope rat ion . 4/ O ve r l ap pi ng netwo r ks c re ate an d organ ize our societ y. P hys i c al , digi ta l, a nd m enta l roads con n e ct in g us all. 5/ Mo n ey i s a netwo r k. Reli g ion is a n et work. A corporat ion is a n et wo r k . Ro a ds a re a netwo r k. Ele ct ricit y is a n et work. . . 6 / Net wo r ks m u s t be o rg a nized accordin g to rules. Th ey require Ru l e r s to enfo rce thes e r u les. Again st ch eaters. 7/ Net wo rks have “netwo r k ef fe ct s.” Addin g a n ew part icipant i n c re as e s the va lu e of the net work for all exist in g part icipant s. 8 / Net wo r k effec ts thu s c reate a win n e r-t ake -all dyn amic. Th e l e ad i n g n etwo r k tends towa rds becomin g t h e on ly n et work. 9 / A n d t h e Ru ler s of thes e net works be come t h e most powerf ul p e o p l e i n s o c iety. 1 0 / So m e a re r u n by ki ngs a nd priest s wh o ch oose wh at is m o n ey an d law, s a c red a nd profan e. Rule is closed to out side rs an d b as e d o n p ower. 1 1 / Many a re r u n by co r po rat ion s. Th e social n et work. Th e s e arc h n etwo r k. T he pho ne or cable n et work. Closed but in it ially m e r i to c rati c . 1 2 / So m e a re r u n by elites . Th e un iversit y n et work. Th e medical n et wo r k . The b a nking netwo rk. Somew h at ope n an d somew h at m e r i to c rati c . 1 3 / A few a re r u n by the m o b. Democracy. Th e Inte rn et . Th e co mm o n s . Open, b u t not m eritocrat ic. An d ve ry in ef f icient . 1 4/ D i c t ato r s hi p s a re m o re eff icie nt in war t h an democracies. T h e I nte r n et a nd phys ic a l co mmon s are ove rloaded wit h abuse an d s p am . 1 5/ T h e 2 0 th centu r y c reated a n ew kin d of n et work - market n et wo r k s . Open A ND m er ito c rat ic. 1 6/ Me r i t in m a r kets is deter min ed by a commit me nt of re s o u rce s . T he res o u rce i s m on ey, a form of f roze n an d t rade ab l e t i me . 17/ T h e m a r ket netwo r ks a re t it an s. Th e credit market s. Th e
sto c k ma r ket s. Th e co mmo di t i e s ma r ket s. Th e mo n ey ma r ket s. Th ey b re a k n at i o n s. 1 8 / Ma r ket n et wo r ks wo r k w h e re t h e re i s a co mmi t me nt of mo n ey. Ot h e r w i se t h ey a re just mo b n et wo r ks. Th e a p p l i c at i o n s a re l i mi te d. 1 9/ U nt i l n ow. 2 0/ B l o c kc h a i n s a re a n ew i nve nt i o n t h at a l l ows me r i to r i o us p a r t i c i p a nt s i n a n o p e n n et wo r k to gove r n w i t h o ut a r ul e r a n d w i t h o ut mo n ey. 2 1 /Th ey a re me r i t- b a se d, t a mp e r- p ro of, o p e n , vot i n g syste ms. 2 2 / Th e me r i to r i o us a re t h o se w h o wo r k to a dva n ce t h e n et wo r k. 2 3/ As so c i et y gi ve s yo u mo n ey fo r gi v i n g so c i et y w h at i t wa nt s, b l o c kc h a i n s gi ve yo u co i n s fo r gi v i n g t h e n et wo r k w h at i t wa nt s. 2 4/ I t ’s i mp o r t a nt to n ote t h at b l o c kc h a i n s p ay i n t h e i r ow n co i n , n ot t h e co mmo n (do l l a r ) mo n ey of fi n a n c i a l ma r ket s. 2 5 / B l o c kc h a i n s p ay i n co i n , b ut t h e co i n just t ra c ks t h e wo r k do n e . A n d di ffe re nt b l o c kc h a i n s de ma n d di ffe re nt wo r k. 2 6 / B i tco i n p ays fo r se c ur i n g t h e l e dge r. Et h e r i um p ays fo r (exe c ut i n g a n d ve r i fyi n g) co mp ut at i o n . 2 7/ B l o c kc h a i n s co mb i n e t h e o p e n n e ss of de mo c ra cy a n d t h e I nte r n et w i t h t h e me r i t of ma r ket s. 2 8 / To a b l o c kc h a i n , me r i t c a n me a n se c ur i t y, co mp ut at i o n , p re di c t i o n , at te nt i o n , b a n dw i dt h , p owe r, sto ra ge , di st r i b ut i o n , co nte nt ... 2 9/ B l o c kc h a i n s p o r t t h e ma r ket mo de l i nto p l a ce s w h e re i t co ul dn’ t go b efo re . 30/ B l o c kc h a i n s’ o p e n a n d me r i t b a se d ma r ket s c a n re p l a ce n et wo r ks p rev i o usly r un by ki n gs, co r p o rat i o n s, a r i sto c ra c i e s, a n d mo b s. 31 / I t ’s n o n se n si c a l to h ave a b l o c kc h a i n w i t h o ut a co i n just l i ke i t ’s n o n se n si c a l to h ave a ma r ket w i t h o ut mo n ey. 32 / I t ’s n o n se n si c a l to h ave a b l o c kc h a i n co nt ro l l e d by a sove re i gn , a co r p o rat i o n , a n e l i te , o r a mo b . 33/ B l o c kc h a i n s gi ve us n ew ways to gove r n n et wo r ks. Fo r b a n ki n g. Fo r vot i n g. Fo r se a rc h . Fo r so c i a l me di a . Fo r p h o n e a n d e n e rgy gr i ds. 34/ Net wo r ks gove r n e d w i t h o ut ki n gs, p r i e st s, e l i te s, co r p o rat i o n s a n d mo b s. Net wo r ks gove r n e d by a nyo n e w i t h me r i t to t h e n et wo r k. 35 / B l o c kc h a i n - b a se d ma r ket n et wo r ks w i l l re p l a ce ex i st i n g n et wo r ks. S l ow ly, t h e n sudde n ly. I n o n e t h i n g, t h e n i n ma ny t h i n gs. 36 / Ul t i mate ly, t h e n at i o n - st ate i s just a n et wo r k (of n et wo r ks) . F I N / Th a n k yo u, S ato sh i Na ko moto . A n d to a l l t h e sh o ul de r s t h at S ato sh i st a n ds up o n .
Tweet storm by Naval Ravikant1 1 ht t p s: //t w i t te r.co m/n ava l /st at us/8 7 746 7 6 2 9308 395 5 2 1
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contents B l o c kc h ai ns will repla ce networks w it h market s
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U p d at i n g Co m m erc ia l Rea l Est ate
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U n l o c k i n g Va lu e
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Sh ar i n g Eco no my : Im pa c ts o n commercial real e st ate
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Es t ab l i s h ing a new c atego r y
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C o mm e rc i a l rea l es tate Pro pe rt y Type s
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M u l t i -d evi ce D evelo pm ent
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Pro pTo ke n Ri ght-To - Use
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B l o c ksq ua re Net wo r k Pa r t i c i p a nt s
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financials 24 Reve n ue st re a ms
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B usi n e ss Mo de l
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St a r t up Fun di n g
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p re sa l e 2 7
Challenges 8
se r i e s a
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fut ure se r i e s
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Re al-Wo r l d As s ets To keni z ation
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M ul t i - se r i e s to ke n sa l e mo de l
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L i q u i d i t y Prem iu m : Unlo c ki ng Value
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B ST to ke n det a i l s
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D i ve r s i f i c ati o n Li m its
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Pre sa l e use of fun ds
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Re al Es t ate 3 .0 :
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Pre sa l e p r i c i n g
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O p e n i n g Acces s
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ro a dma p 32
Re m ote P ro p er ty Ma na gem ent
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fo un de r s 33
N E T WO R K S CA LING
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te a m me mb e r s
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an d u s e r a do ptio n
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Fo un di n g p a r t n e r : Me di us i n c
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Value propositions
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T h e B l o c ks qu a re Sys tem
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G rap h i c Over v i ew
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D et ai l e d Gra phic Rep res entat ion
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P ro pTo ke n Sta nda rd
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B l o c k s q u are 16 P ro pTo ke n s (B S PT )
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To ke n F l ow
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P ro pTo ke n G enerati o n (PTGE )
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B l o c k s q u are to kens (B ST )
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P ro of of T i tle Proto co l (POT )
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P ro pTo ke n G over na nce
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B l o c k s q u are Netwo r k Res er ve Fun d
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P ro pTo ke n Pr ivatizatio n
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P ro pTo ke n Rem u nerati o n
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P ro pTo ke n D ecentra lized E xc h an ge
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Updating Commercial Real Estate W i l l b l o c kc ha in tec hno lo g y produce PropTe ch 3. 0, t h e n ext wave of i n n ovat io n i n rea l es tate? S in ce 2012, real e st ate tech compan ies h ave rai s ed US D 6 .4 b i llio n i n f un din g an d 4 compan ies h ave be e n m i nte d to the u ni co r n c lu b. Th is act ivit y in dicates real e st ate is i n n e e d of a bi g u p date, a nd a 95-page report writ te n by An drew B au m an d relea s ed by S a ïd Busin ess Sch ool, Un iversit y of Oxford t ake s an exp a ns i ve lo o k at PropTe ch an d REtech . Th e report f i n d i n g s deta i l the c ha nges facin g t h e re al e st ate in dust ry an d b l o c kc h ai n i s a lrea dy ta king a big part .
The reason tokenization improves liquidity, is because it enables deeper markets. Since tokens are highly divisible and global, the potential number of market participants is substantially higher than what we see today in markets for illiquid assets.
Th e re a l e st ate i n dust r y c a n use b l o c kc h a i n o r di st r i b ute d l e dge r te c h n o l o gy to b ui l d a p p l i c at i o n s usi n g sma r t co nt ra c t s a n d deve l o p se r v i ce s t h at b r i n g t h e b e n efi t s of a n ew te c h n o l o gy b ot h to i t se l f a n d to t h e ma i n st re a m. Th e ma i n p ro p o n e nt s of b l o c kc h a i n fo r re a l e st ate a re : • mo re i nfo r mat i o n , ava i l a b l e i n st a nt a n e o usly; • l e ss e r ro r, l e ss dup l i c at i o n , l e ss h uma n i n effi c i e n cy l e a di n g to muc h l owe r co st s; • gre ate r t ra n sp a re n cy ( t h ro ugh co n se n sus a n d di st r i b ut i o n ) of p r i ce s a n d co nt ra c t s; • p ote nt i a l ly re duce d t ra n sa c t i o n t i me s; a n d • gre ate r ma r ket l i q ui di t y a n d t ur n ove r. Wh i l e t h e i mp l e me nt at i o n of b l o c kc h a i n te c h n o l o gy fo r ce r t a i n use c a se s i s to b e co n si de re d, i n i t i ate d a n d a cce pte d by gove r n me nt a ut h o r i t i e s (e .g. t i t l e re gi st rat i o n , l a n d re gi st r y syste ms, c a da st ra l syste m, l a n d te n ure syste ms, n ot a r y se r v i ce s etc .) , ot h e r a p p l i c at i o n s may b e b ui l t o n to p of t h e c ur re nt ly ava i l a b l e syste ms a l re a dy i n p l a ce . B l o c ksq ua re i s b ui l di n g t h e n e e de d i nfra st r uc t ure to gi ve C RE p rofe ssi o n a l s si mp l e to o l s fo r C RE p ro p e r t y to ke n i z at i o n , e n a b l i n g fra c t i o n a l ow n e r sh i p , gi v i n g use r s effe c t i ve di ve r si fi c at i o n o pt i o n s, i n c re a si n g l i q ui di t y of re a l e st ate a sset s.
- Stephen McKeon
Unlocking Value G l o b al re a l es tate a cco u nts for 60% of all main st ream asset s an d was va lu ed at ro u ghly USD 219 t rillion in 2015, accordin g to c al c u l atio ns by inter nation al real est ate advise r, Savills. 1 Re s i d e nt i a l p ro per ty co ns ti tute s t h e majorit y of t h e tot al value of g l o b al p ro per ty, with CRE repre se nt in g about 25% or USD 54 trillion. Es t i m at i o n s s u gges t the i lliquidit y discount of real e st ate is s o mew h e re a ro u nd 1 0 -3 0 % . 2 Th is re pre se nt s a h uge amount of val u e an d therein lies great promise. If we were to un lock 10% of t h e valu e of g lo b a l CRE by int roducin g toke n izat ion an d f r i c t i o n l e ss tra di ng, that wo uld amount to over USD 5 t rillion . Now, to ken g eneratio n to represe nt own ersh ip, acce ss an d/or g ove r n an ce c la im s o n a tra di tion al asset does n ot impact liquidit y p e r s e . If a to ken i s not tra din g en ough , it is st ill re lat ive ly illiquid. I mp rove ment in li q u idi ty co mes f rom in cre ase s in market dept h , m e an i n g mo re pa r ti c ipa nts a nd more t rade . I mp o r t ant to note that a lm ost h alf of t h e world’s commercial p ro p e r t y wea lth i s i n No r th America, wit h 28% in Europe an d just 5% i n L at in A m er i c a , the Middle East an d Af rica combin e d. Th e re p o r t h i g hlights that the c reat ion of n ew commercial real e st ate 1 http://pdf.euro.savills.co.uk/global-research/around-the-world-in-dollars-and-cents-2016.pdf 2 http://people.stern.nyu.edu/adamodar/pdfiles/country/illiquidity.pdf
USD 217 trillion
USD 54 trillion
USD 5 trillion
ma r ket s i n t h e se a re a s, a s we l l a s Asi a , re p re se nt h uge ma r ket . Th e re p o r t e st i mate s t h at i f t h e va l ue of co mme rc i a l sp a ce i n t h e se re gi o n s we re c ur re nt gl o b a l ave ra ge p e r h e a d of p o p ul at i o n , t h e co mme rc i a l re a l e st ate gl o b a l ly wo ul d r i se by 5 4% .
a p ote nt i a l ly q ua nt i t y a n d to re a c h t h e tot a l va l ue of
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Establishing a new category C re at i n g a n ew c ate go r y to c h a l l e n ge t h e st at us q uo a n d st a r t so met h i n g t r uly n ew a n d o r i gi n a l i s o n e of t h e mo st di ffi c ul t un de r t a ki n gs i n b usi n e ss. B l o c ksq ua re i s wo r ki n g to c h a n ge h ow we p e rce i ve re a l e st ate i nve st me nt s. We fo re se e a fut ure w h e re i nve st i n g i n to ke n i ze d C RE p ro p e r t i e s w i l l re p l a ce t ra di t i o n a l re a l e st ate i nve st me nt o pt i o n s of to day. M uc h l i ke U b e r a n d A i r b n b h ave c re ate d t rave l p ro duc t s t h at a l l ow p e o p l e to fi n d r i de s o r p l a ce s to st ay w i t h a n e a se t h at wa s p rev i o usly un h e a rd of, B l o c ksq ua re i s set to o p e n gl o b a l C RE to a nyo n e w i t h a n i nte r n et co n n e c t i o n .
Tokenizing relatively illiquid assets and creating a market in which to trade these tokens can reduce the illiquidity discount substantially by reducing frictions to trade. Traditional assets will tokenize because they will lose the liquidity premium if they don’t. - Stephen McKeon
Sharing Economy: Impacts on commercial real estate Sh ar i n g eco no my co m pa nies h ave t ruly ch an ged h ow we visit d e s t i n at i ons , how we s tay t h e re, an d h ow we move aroun d. T h e s h ar i ng eco no my ha s taken of f in all sort s of n ich e s f rom r i d e s h ar i n g, a pa r tm ent o r home len din g, pe e r-to-pee r le n din g, re s e l l i n g , cowo r ki ng, ta lent- sh arin g. In t h e last ce nt ury, own in g t h i n g s was the m a r ker of the middle class. Th ose wh o h ad more m o n ey cou ld own m o re things. To d ay h owever, a s m illennia ls ente r adult h ood, t h e t ren d se e ms to b e fo r t h e m to own les s a nd th e advent of t h e digit al an d sh arin g e co n o mi e s have m a de thi s m uch e asier. Even so, recent dat a f rom A p ar t me nt Lis t s hows that, a l t h ough 80 perce nt of US mille n n ials wo u l d l i ke to pu rc ha s e rea l est ate , very few are in a good posit ion to ac t u al ly b u y, la rgely b ec a use t h ey h ave n ot e n ough save d. 1 T h i s co u l d im ply that the need for re nt al h omes w ill f urt h e r cont in ue to i n c re as e, a s the tra di ti o n al model to becomin g h ome own er i s n ot w i t hin rea c h fo r the majorit y. Eit h er way, t h e fact is, any s h ar i n g e co no my requ ires a sset s in orde r to run (e. g. Ube r→ c ars, A i r b n b → h o m es ), a nd thes e a s set s n ee d someon e to acquire t h em 1 https://www.apartmentlist.com/rentonomics/american-dream-homeownership-delayed-millennialgeneration/
a n d h o l d ow n e r sh i p . To day mo st of t h e se a sset s a re ow n e d by a sma l l n umb e r of p a r t i c i p a nt s of a p a r t i c ul a r sh a r i n g e co n o my, b ut i n a n ot so di st a nt fut ure , b l o c kc h a i n , to ke n i z at i o n a n d fra c t i o n a l ow n e r sh i p w i l l e n a b l e a muc h w i de r ra n ge of use r s to ow n a sma l l p a r t of a sset s i n a gi ve n sh a r i n g e co n o my. At sc a l e , t h i s w i l l re p re se nt a b i g b o o st , a ddi n g ma ny n ew a sset s to a sh a r i n g e co n o my p l at fo r m.
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Commercial real estate Property Types I n re ce nt ye a r s, co mme rc i a l re a l e st ate h a s i n c re a si n gly mi grate d i nto t h e ma i n st re a m a s a so ught afte r a sset . Prev i o usly l o n g co n si de re d a n “a l te r n at i ve a sset � c l a ss t h at fl o ate d o n t h e p e r i p h e r y of t ra di t i o n a l i nve st me nt s suc h a s sto c ks, b o n ds a n d mut ua l fun ds, co mme rc i a l re a l e st ate i s to day t h e t h i rd l a rge st a sset c l a ss. Th e re a re fo ur b a si c gro up s i n re a l e st ate ge n e ra l ly v i ewe d a s offi ce , i n dust r i a l , ret a i l a n d mul t i fa mi ly. Wi t h n ume ro us ot h e r p ro p e r t y t yp e s o ut si de of t h e co re fo ur, i n c l udi n g h ote l s, se l fsto ra ge , me di c a l offi ce , se n i o r h o usi n g, st ude nt h o usi n g a n d l a n d, a mo n g ot h e r s, co mme rc i a l re a l e st ate i s va st i n a l mo st eve r y se n se . A l t h o ugh t h e B l o c ksq ua re n et wo r k c a n p ote nt i a l ly a cco mmo date a l l t yp e s of re a l e st ate , we co n si de r i t w i se to fi r st l i mi t re so urce s a n d fo c us o n t h e grow i n g ma r ket of p rofe ssi o n a l sh o r t- te r m re nt a l s ( i .e . fl at s fo r A i r b n b) . Th i s ma r ket h a s grow n i n re ce nt ye a r s a n d to day offe r s a we l l e st a b l i sh e d i nfra st r uc t ure of l o c a l o n - si te p ro p e r t y ma n a ge me nt se r v i ce s t h at t a ke t h e wo r k o ut of re nt i n g, a n a lyt i c a l dat a p rov i de r s t h at h e l p eva l uate ma r ket o p p o r t un i t i e s a n d a ma r ket i n g e dge t h at re so n ate s to a b ro a de r a udi e n ce .
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Multi-device Development T h e p ro l i ferati o n of dev i ces has ch an ged t h e way we inte ract w it h t h e wo r l d a ro u nd u s . In a n average day, more t h an a quarter of u s e r s s e arc h a c ro s s m o re tha n on e t ype of device . Wh ile compute r u s ag e p e a ks in the evening, smart ph on e usage be gin s in t h e m o r n i n g and s tays co ns is tent t h rough out t h e day an d into t h e n i g ht . O ve r 3 0 % u s e thei r p hon e s eve n af te r midn ight , so t h e re’s n eve r re ally a n off- tim e. 1 Fluid movement bet wee n device s c h an g e s h ow b u s i nes s es m ust approach customers. C on sume rs n ow i nte rac t with a bra nd co ncurre nt ly on more t h an on e t ype of d ev i ce , m a ki ng i t c r itic a l to provide t h e same gre at experie n ce ac ro s s s c reens . W i t h t h e s c a le of innovation aroun d digit al curre n cies an d b l o c kc h ai n , the i ndu s tr y i s con st ant ly deve lopin g an d providin g i m p rove d s o lu tio ns , enha nc in g UX an d design . Our goal is to build B l o c k s q u are i nto a c ro s s - device plat form wit h a se amle ss use r ex p e r i e n ce. A n o nli ne co m m ercial re al e st ate market place for t h e n e e d s of t he inter net generat ion . 1 https://storage.googleapis.com/think/docs/twg-how-people-use-their-devices-2016.pdf
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Challenges
Real-World Assets Tokenization To ke n i z at i o n i s the p ro ces s of convert in g right s to an asset into a d i g i t al to ken o n a blo c kc ha in an d is expected to h ave a se rious i m p ac t o n li q u idi ty a c ro s s m ult iple asset classe s in t h e decade to co me . T h o u s an d s of yea r s of pro per t y ow n e rsh ip h as le d to a wide variet y of t yp e s of owner s hi p a nd cont rol such as h oldin g prope rt y on b e h al f of a nother per s o n. T he det ails depen d on t h e jurisdict ion , t y p e of l aw, a s s et, a nd the right s inten de d to be t ran sferre d. To d ay, re a l-wo r ld a s s ets like stocks, gold, oil or real est ate are d i f f i c u l t to p hys i c a lly tra ns fer or subdivide , so buyers an d selle rs c h o o s e to tra de pa per that repre se nt s some or all of t h e asset . But p ap e r an d co m p lex leg a l a g ree ment s are cumbe rsome, dif f icult to t ran s fe r a nd c a n b e ha rd to t rack.
i nvo lve s to ke n i z i n g re a l-wo r l d a sset s l i ke re a l e st ate i s to e n sure t h at t h e di gi t a l to ke n st ays l i n ke d to t h e re a l-wo r l d a sset . B l o c ksq ua re p rov i de s a so l ut i o n to t h i s c h a l l e n ge by i nt ro duc i n g i t s Pro of of Ti t l e p roto co l to l i n k sma r t co nt ra c t s to t h e un de r lyi n g re a l e st ate p ro p e r t y. P leas e refer to ch apter P ro of of Tit le P roto co l fo r fu r t h er detail s .
How big is the illiquidity discount? Financial economists have attempted to measure the illiquidity discount in a variety of ways. A common rule of thumb is 20–30%. This represents a huge amount of value and therein lies great promise.
B l o c kc h ai n a nd s m a r t co ntract s of fe r t h e re quired inf rast ruct ure to evo lve to a di g i ta l sys tem lin kin g toke n s to a re al-world asset . T h e g o al is to a c hieve the s ecurit y, spe e d an d e ase of t ran sfe r of c r ypto c u r renc ies (e.g . B i tco in , Et h er), combin ed w it h a re al-world as s et l i ke rea l es tate. In a digit al system like Bitcoin or Et h e reum t h e re i s a lways co ns i s tency. Tran sact ion s obey t h e rule s of t h e s of t ware a nd there a re no exce pt ion s. In t h e real world, t h e re are of te n exceptio ns . T herefo re th e key ch allen ge for a syste m t h at
- Stephen McKeon
Liquidity Premium: Unlocking Value L i q u i d i t y is a co m p lex m u ltidimen sion al con cept t h at man ifest s i t s e l f i n a nu m ber of ways , a nd h as n o sin gle, gen e rally acce pted d ef i n i t i o n o r m ea s u re. 1 Keyn e s’ descript ion of a liquid asset “ b e i n g mo re cer ta inly rea lis able at sh ort n ot ice wit h out loss” is p ro b ab ly the m o s t frequ ently cite d on e . In t h is se n se , liquidit y c an b e v i ewed in ter m s of the t ran sact ion price an d t ran sact ion t i m e . Ty p ic a lly, inves to r s who are force d to se ll w it h in a cert ain t i m e l i m i t m ay b e a ble to do so at t h e cost of a lower ef fect ive s al e p r i ce, while a hi g her p rice could be ach ievable if a lon ge r m ar ket i n g per i o d ha d b een a ccepte d. More over, liquidit y in private m ar ket s i s a s s o c i ated wi th u ncert aint y regardin g t h e t ime an d t h e val u e of t he tra ns a c tio n. Mo s t of t h e li teratu re o n real e st ate liquidit y 2 focuses on ly on ce r t ai n as p ec ts of the pro ble m, n ame ly: • • • •
Tran s a c ti o n intens i ty Tran s a c ti o n co s t D u rat i o n of the s a le pro ce ss (t ime on market ) U n ce r ta i nty a s s o c i ated wit h t h e sale proce ss
1 Lizieri and Bond (2004) review different de nitions in the nancial and real estate literature. 2 See e.g. Lizieri and Bond (2004) or Hoesli and Lizieri (2007).
I n si mp l i fi e d te r ms, l i q ui di t y de sc r i b e s t h e de gre e to w h i c h a n a sset o r se c ur i t y c a n b e q ui c kly b o ught o r so l d i n t h e ma r ket w i t h o ut affe c t i n g t h e a sset ’s p r i ce . Ma r ket l i q ui di t y refe r s to t h e ex te nt to w h i c h a ma r ket , suc h a s a co unt r y’s sto c k ma r ket o r a c i t y’s re a l e st ate ma r ket , a l l ows a sset s to b e b o ught a n d so l d at st a b l e p r i ce s. C a sh i s t h e mo st l i q ui d a sset , w h i l e re a l e st ate , fi n e a r t a n d co l l e c t i b l e s a re a l l co n si de re d re l at i ve ly i l l i q ui d. 3 I l l i q ui d do e s n ot n e ce ssa r i ly me a n unt ra de a b l e , b ut rat h e r si gn i fi c a nt ly co st ly to t ra de . Th e co st of t ra di n g i l l i q ui d a sset s i s refe r re d to a s t h e ‘ l i q ui di t y p re mi um’ o r co r re sp o n di n gly ‘ i l l i q ui di t y di sco unt ’. G l o b a l re a l e st ate va l ue wa s re ce nt ly e st i mate d at U S D 2 17 t r i l l i o n . 4 Ro ugh ly 2 5 % of t h at tot a l , U S D 5 4 t r i l l i o n , i s co mme rc i a l . If B l o c ksq ua re we re to un l o c k 1 0% of t h e i r c ur re nt l i q ui di t y p re mi um, t h at i s ove r U S D 5 t r i l l i o n . Th e i l l i q ui di t y di sco unt o n gl o b a l co mme rc i a l re a l e st ate i s t h e refo re a b o ut 30–40x t h e a ggre gate va l ue of t h e c ur re nt c r ypto c ur re n cy ma r ket .
3 http://www.investopedia.com/terms/l/liquidity.asp 4 http://www.savills.co.uk/research_articles/188297/198667-0
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Real Estate 3.0: Opening Access Re a l e st ate i nve st i n g i s a co n ce pt t h at ’s a s o l d a s t h e i de a of p ro p e r t y ow n e r sh i p i t se l f. L a n d, l i ke a ny ot h e r va l ua b l e re so urce , c a n b e b o ught , refi n e d, re p a c ka ge d, ma r kete d, a n d so l d, o r re nte d o ut fo r a p rofi t . Wh at h a s b e gun to c h a n ge i n t h e l a st ye a r s a re t h e to o l s a n d te c h n i q ue s t h at a re b e co mi n g ava i l a b l e fo r a nyo n e i nve st i n g i n re a l e st ate a sset s. As a re sul t , re a l e st ate c rowdfun di n g p l at fo r ms, a l so refe r re d to a s REC F p l at fo r ms, h ave b e co me a n i n c re a si n gly p o p ul a r so urce fo r b ot h fi n a n c i n g a n d i nve st i n g i n re a l e st ate a sset s. Wh i l e a l l t h i s re p re se nt s a gre at ste p i n o p e n i n g a cce ss to re a l e st ate i nve st me nt s, a mo re i n de pt h a n a lysi s of ma jo r REC F p l at fo r ms reve a l s i nfl ex i b i l i t i e s a n d l i mi t at i o n s t h e se p l at fo r ms a re un a b l e to ove rco me , due to t h e n o n - di gi t a l n at ure of t h e un de r lyi n g co mp l ex a n d c umb e r so me st r uc t ure of l e ga l a gre e me nt s ma ki n g t h e se re a l e st ate a sset s, eve n t h o ugh fra c t i o n a l , di ffi c ul t to t ra de . B l o c ksq ua re’s n et wo r k of sma r t co nt ra c t s de p l oye d o n t h e Et h e re um b l o c kc h a i n ove rco me s t h e se l i mi t at i o n s a s a cco unt i n g i s p ro gra mme d i nto t h e n et wo r k i t se l f. Wh at ’s mo re , i t o p e n s a cce ss to t h e ma jo r i t y c rowd of i nte r n et use r s, a l l ow i n g a nyo n e re ga rdl e ss of b udget to p a r t i c i p ate i n to ke n i ze d re a l e st ate p ro p e r t i e s i n a de ce nt ra l i ze d ma n n e r.
Diversification Limits Re al e s t ate i s a c ha lleng i ng asset class w h e n it come s to risk m an ag e ment b ec a u s e of i ts complexit ie s an d mult iple leve ls of r i s k . T he nu m ber of pro pert ie s to h old to ach ieve a welld i ve r s i f i e d rea l es tate p ro per t y port folio pre se nt s a puzzle, as t h e e s t i mate d nu m b er i s co ns iderably h igh e r t h an t h at see n in act ual p o r t fo l i o s . By s p rea di ng a c ro ss real est ate market s t h at are poorly co r re l ate d, the r is k o n p o r tfolio leve l can be re duced. To some d e g re e , t h es e benefi ts c a n be realise d by invest in g in mult iple re al e s t ate s ec to r s withi n a sin gle market , alt h ough corre lat ion s ac ro s s s e c to r s tend to b e relat ively h igh . Howeve r, a sign if icant f u r t h e r e nha ncem ent of r i s k- adjusted ret urn s is possible t h rough i nve s t i n g a c ro s s glo b a l rea l est ate market s.
B l o c ksq ua re’s n et wo r k of to ke n i ze d re a l e st ate offe r s i n di v i dua l i nve sto r s to re p l i c ate i n st i t ut i o n a l re a l e st ate di ve r si fi c at i o n st rate gi e s w i t h i n t h e i r ow n i nve st me nt p o r t fo l i o s, re ga rdl e ss of p o r t fo l i o si ze . Fur t h e r mo re , w i t h t h e a b i l i t y to fre e ly t ra de t h e se to ke n i ze d a sset s o n a de ce nt ra l i ze d ma r ket , i nve sto r s a re n ot b o un d to l o n g- te r m l i a b i l i t i e s a s w i t h n o n - to ke n i ze d re a l e st ate i nve st me nt s ma ki n g re a l e st ate sui t a b l e fo r t h e n e e ds of to day’s i nve sto r s a n d t h e de ma n d fo r gre ate r l i q ui di t y.
I n s t i t u t i o na l inves to r s a re ex pe rie n ced an d progre ssive wh en it co me s to bu ildi ng a glo b a l re al e st ate port folio. Most in st it ut ion al i nve s to r s c ho o s e a co m bi nat ion of direct re al est ate, n on -listed re al e s t ate fu nds a nd rea l es tate equit ies for t h e purpose of t h eir g l o b al re a l es tate a llo c atio n. Th e goal is port folio diversif icat ion w i t h d i re c t rea l es tate inves tment s usually composin g t h e majorit y of t h e i r p o r tfo lio . Ins ti tu ti o n al inve stors also h ave a lon g t ime h o r i zo n an d a my r ia d of res ources at t h e ir disposal to opt imize t h e i r as s et diver s ific atio n, s omet h in g most in dividuals can n eve r ac h i eve as i t requ ires a co ns iderable port folio size to begin w it h .
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Remote Property Management T h e b e s t way to m a na g e co m me rcial propert y remote ly is to e n list a re l i ab l e lo c a l p ro per ty m a nager. A competent prope rt y man ager c an ad d s ignific a nt va lu e to a ny t ype of re al est ate inve st ment . Th e b e n ef i t s of hi r i ng a profes s i on al propert y man agement company al l ow l an dlo rds to recei ve high e r qualit y ten ant s, sh orte r vacan cy cyc l e s , b etter tena nt retention , t ighter re nt colle ct ion process, l owe r ma i ntena nce a nd rep air cost s an d less legal problems. A s k i l l e d p ro per ty m a na g er may also in crease t h e value of re al e s t ate p rop er ty thro u gh p reve nt at ive mainte n an ce systems t h at c atc h an d dea l wi th m a intenan ce an d repair issues early on or by of fe r i n g s ugges tio ns a nd feedback on upgrade s an d modif icat ion s.
h o l de r s may c h a n ge fre q ue nt ly a n d a re l i ke ly to b e sc at te re d a ro un d t h e gl o b e . Th i s sugge st s a p ro p e r t y ma n a ge r i s n ot o n ly we l co me d, b ut co n si de re d n e ce ssa r y. Pro p e r t y ma n a ge me nt co mp a n i e s a l re a dy ma n a ge t h e i r p ro p e r t i e s usi n g va r i o us p ro p e r t y ma n a ge me nt sofwa re so l ut i o n s t h at B l o c ksq ua re i s l o o ki n g to co n n e c t t h ro ugh A PI i nte grat i o n s i n i t s off- c h a i n p l at fo r m t h at r un s o n to p of i t s n et wo r k of to ke n i ze d C RE p ro p e r t i e s to e n a b l e p ro p e r t y to ke n h o l de r s a n ove r v i ew of t h e i r p o r t fo l i o a n d co n n e c t t h e m to o n si te p ro p e r t y ma n a ge r s.
As we s e e ho m e a nd b u ildi ng automat ion tech n ology solut ion s coming to the market, the tasks associated to property management are b e co m ing les s dem a ndin g an d w it h t h e Intern et of Th in gs at o u r d o o r s tep s , s m a r t rea l est ate propert ie s w ill make re mote p ro p e r t y ma na gem ent even easier. It is n ot h ard to envision a f ut ure w h e re p ro per ties a re p a r t of a large r learn in g ecosystem, t h at ’s aware of u s er s , thei r ha bi ts an d move ment s, usin g informat ion f ro m i nte rco nnec ted dev ices an d se n sors to n ot on ly e n h an ce u s e r ex p er ience, b u t a ls o m o nitor an d de live r accurate usage an d p e r fo r m an ce data direc tly to propert y man age rs an d lan dlords. W h e n to keni z i ng rea l es tate prope rt y, h un dre ds or eve n t h ousan ds of s t ake h o lder s m ay b e i nvolve d. Furt h e rmore , propert y toke n
NETWORK SCALING and user adoption B l o c ksq ua re Pro pTo ke n co nt ra c t s i n co r p o rate a 2 % t ra n sa c t i o n fe e . Th i s fe e i s t h e n sp l i t a mo n gst n et wo r k p a r t i c i p a nt s to ke e p i n ce nt i ve s a l i gn e d. Ha l f of t h e t ra n sa c t i o n fe e go e s to t h e B l o c ksq ua re re se r ve fun d to fi n a n ce up ke e p a n d ma i nte n a n ce of t h e re a l e st ate p ro p e r t i e s i n t h e n et wo r k, w h i l e t h e ot h e r h a l f i s sp l i t b et we e n B l o c ksq ua re I n c a n d t h e p ro pto ke n i ssue r (e .g. a B l o c ksq ua re ce r t i fi e d RE b ro ke r ) . To p ro p e l t h e n ew ma r ket of to ke n i ze d C RE , t h e fi r st Pro pTo ke n co nt ra c t s h ave b e e n de si gn e d to di st r i b ute B l o c ksq ua re’s p o r t i o n of t h e fe e to ‘ fi r st b uye r s’ - use r s t h at p urc h a se d Pro pTo ke n s ( B S PTs) dur i n g a Pro pTo ke n ge n e rat i o n eve nt . B e c a use t h e fe e i s co de d i nto t h e Pro pTo ke n co nt ra c t , fi r st b uye r s w i l l a lways b e n efi t fro m a ny t ra di n g a c t i v i t y w h e re t h e sp e c i fi c Pro pTo ke n i s i nvo lve d. Th i s me a n s t h ey e a r n t h e i r sh a re fro m e a c h t ra de eve n i f t h ey do n ot h o l d t h e Pro pTo ke n a nyo mo re . G ra dua l ly a s a do pt i o n grows, t h i s fe e to “fi r st b uye r s” w i l l b e fi r st l owe re d a n d t h e n o mi t te d.
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Value propositions
The Blocksquare System Si mi l ar to how A m a deu s o r S a bre syste ms provide t h e inf rast ruct ure fo r ai r l i n e co m pa nies to s ell t icket s t rough ret aile rs, w h e re s k ys c an n er, m o m o ndo etc . a re aggre gators to facilit ate en d user p r i ce co m pa r is io n, B lo c ks q u are is deve lopin g t h e inf rast ruct ure l aye r an d s ta nda rd fo r rea l e st ate toke n izat ion an d f ract ion al ow n e r s h i p s o reta i l p rov i der s can develop t h eir se rvices on top an d re al e s tate i nves tm ents to anyon e , eve ryw h e re. We l eve rage the Ethereu m blockch ain to de sign a system to fac i l i t ate the es ta b li s hm ent an d growt h of a n ew global market of to ke n i zed rea l es tate, wi th t h e main drive r esse nt ially comin g d ow n to mo neta r y i ncentive dist ribut ion of t h e curre nt ly lockedi n val u e of li q u idi ty prem i u m s to market part icipant s. To in crease t r u s t i n t he to kenizatio n p ro cess of real-e st ate asset s, t h e Proof of T i t l e p roto co l is u s ed to lin k PropToken smart cont ract s to t h e u n d e r ly i ng rea l es tate prope rt y. PropToke n cont ract s are d eve l o p e d to prov i de a govern an ce system givin g token h olders co nt ro l over cer ta i n pro per ty relate d de cision s. Par t i c i p at io n in Pro pTo kens i s grante d in exch an ge for ETH, but a s e p arate to ken i s u s ed to remun e rate gen e rated re nt - t h e BST to ke n . T h e p r im a r y rea s o n fo r t h e int roduct ion of t h e BST token is to reward ea r ly a do ptio n, b u t it also serves as a leve l-up syste m w i d e ly u sed in the ga m i ng in dust ry. Holdin g BST grant s use rs i nte rac t i o n with the B lo c ks q uare n et work (e. g. t h e more BST on e h o l d s , t h e m o re Pro pTo ken cont ract s h e or sh e can inte ract w it h ). T h e p l at for m p rov i des u s er s wit h a GUI to facilit ate user-n et work i nte rac t i o n, a ltho u gh Pro pTo ken s, bein g deploye d on t h e Et h ereum p l at fo r m, ca n inherently be s tored in any ERC20 compat ible wallet g i v i n g P ro pTo ken ho lder s full cont rol of t h e ir asset s. It is also p o s s i b l e t hat we wi ll s ee m o re localized plat forms t h at w ill se rve l o c al m ar kets u nder di fferent jurisdict ion s an d rules. T h e ap p ea l of rea l es tate token izat ion lie s wit h in t h e abilit y to f re e ly t rans a c t o nli ne, effect ively in creasin g liquidit y of t h e u n d e r lyi n g a s s et by m u lti p les. To build it s PropToken market place , B l o c k s q u are i s develo p i ng o n top of t h e de cent ralized exch an ge p roto co l 0x. 0 x s u p po r ts a ll Et h ereum-base d asset s t h at adh e re to t h e E R C20 to ken s ta nda rd. 1 To minimize business risk regarding development of the Blocksquare n et wo r k , a s ep a rate li m ited liabilit y company Blocksquare In c. w i l l b e i n co r po rated u po n securin g deve lopme nt f un din g. Th e p u r p o s e of B lo c ks q u a re Inc . is to employ all n ecessary me an s to d eve l o p , grow a nd a dver tis e t h e Blocksquare syste m. As t h e B l o c ks qu a re sys tem allows dif fe rent part ie s wit h various i nte re s t s to tra ns a c t a nd inte ract , a reput at ion system n ee ds to b e i nt ro du ced. T he g o a l of t h e re put at ion syste m is to give P ro pTo ke n ho lder s the a b i l it y to rate service providers (e. g. p ro p e r t y m a na ger s ) b a s ed o n t h e ir performan ce .
Building blocks of Blocksquare: • Pro pTo ke n s ( re a l e st ate p ro p e r t y sp e c i fi c to ke n s) • Pro of of Ti t l e p roto co l ( p roto co l to l i n k a Pro pTo ke n co nt ra c t to l a n d re gi st r y dat a ) • Use r s: • Pro pTo ke n st a ke h o l de r s • Re a l e st ate p rofe ssi o n a l s ( p ro p e r t y ma n a ge r s, a ge nt s, p ro p e r t y refur b i sh e r s/re se l l e r s, RE deve l o p e r s, p ro p e r t y h o l di n g co mp a n i e s, dat a p rov i de r s) • B ST to ke n ( B l o c ksq ua re to ke n fo r n et wo r k ut i l i t y) • B l o c ksq ua re Net wo r k Re se r ve Fun d ( to cove r o n go i n g co st s) • B l o c ksq ua re Pl at fo r m (G U I fo r use r i nte ra c t i o n s) • De ce nt ra l i ze d exc h a n ge ( to b uy/se l l Pro pTo ke n s) • B l o c ksq ua re Fo un dat i o n ( n o n - p rofi t o rga n i sat i o n fo r t i t l e a n n ot at i o n s) • B l o c ksq ua re I n c . ( n et wo r k o p e rato r ) • Re p ut at i o n syste m
1 https://github.com/0xProject
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Blocksquare PropTokens (BSPT) Pro pTo ke n s a re sma r t co nt ra c t s de p l oye d o n t h e Et h e re um b l o c kc h a i n . Et h e re um sma r t co nt ra c t s a re p ro gra ms r un o n a b l o c kc h a i n , w i t h un i q ue at t r i b ute s co mp a re d to ot h e r fo r ms of soft wa re . Th e p ro gra m i t se l f i s re co rde d o n t h e b l o c kc h a i n , w h i c h gi ve s i t c h a ra c te r i st i c s l i ke p e r ma n e n ce , ce n so r sh i p re si st a n ce a n d i r reve r si b i l i t y. Th i s i n te r ms me a n s a ny l i n e w r i t te n i n t h e sma r t co nt ra c t w i l l a lways b e p re se nt a n d c a n n ot b e mo di fi e d at a l ate r st a ge . Th e ma i n p ur p o se of a Pro pTo ke n co nt ra c t i s to i ssue a un i q ue set of to ke n s ( B S PT) l i n ke d to a sp e c i fi c re a l e st ate p ro p e r t y. A Pro pTo ke n co nt ra c t sto re s p ro p e r t y re l ate d dat a ( i .e . c a da st ra l mun i c i p a l i t y, p a rce l n umb e r, b ui l di n g n umb e r, i n di v i dua l p a r t n umb e r, p ro p e r t y I D a n d r i ght I D) a n d p ro p e r t y h o l di n g re l ate d dat a (e .g. co mp a ny’s re gi st rat i o n I D n umb e r, co mp a ny ful l n a me a n d co mp a ny a ddre ss) . A Pro pTo ke n co nt ra c t a l so sto re s i nfo r mat i o n re ga rdi n g a l l a cco unt s h o l di n g t h e i ssue d B S PT to ke n s. As e a c h se p a rate re a l e st ate p ro p e r t y o cc up i e s a di ffe re nt p hysi c a l l o c at i o n a n d i s di st i n gui sh e d by a ra n ge of ot h e r c h a ra c te r i st i c s, n o t wo Pro pTo ke n s a re i de nt i c a l . To ke e p t ra c k, B l o c ksq ua re w i l l ma i nt a i n a n d c urate a di gi t a l l i st of a l l de p l oye d Pro pTo ke n co nt ra c t s.
PropToken Standard P ro pTo ke n s a re Ethereu m - b a sed asset s t h at adh ere to t h e ERC 20 to ke n s t anda rd. Even tho u g h each PropToken re pre se nt a dif fe rent re al e s t ate p ro per ty, they a ll h ave t h e same st ruct ure : • P ro pTo ken na m e: B S PT- [count ry code ]-[12-digit s e q u enti a l nu m b er ] • Tot al to ken s u pply (fixed): 100,000 toke n s • Tran s a c ti o n fee T h e P ro pTo ken no m enc latu re follows a Blocksquare set st an dard. B SP T of fe r s at- a - g la nce i dentif icat ion of t h e toke n bein g issue d by B l o c k s q u are. T he [co u ntr y code] part make s use of t h e ISO 3166-1 al p h a-3 offi c ia lly a s s i g ned co de e lement s. 1 Th e 12-digit se quent ial n u m b e r i s a u to m ati c a lly a s sign e d to e ach n ew PropToke n in a g i ve n co u ntr y. E xa m ples : B SP T- SV N- 0 0 0 0 0 0 0 0 0 0 0 1 , BSPT-SVN-000000000002, SV N -0 0 0 00 0 0 0 0 0 0 3 , ...; BSPT-GER-000000000001, G E R -0 0 0 00 0 0 0 0 0 0 2, …; B SPT-USA-000000000001, U SA-0 0 0 00 0 0 0 0 0 0 2, ...;
BSPTBSPTBSPT-
of U S D 1 0 p e r B S PT to ke n . Wh e n eve r a t ra n sa c t i o n of B S PT o cc ur s, a fe e i s p a i d by t h e t ra n sa c t i o n i n i t i ato r to t h e Pro pTo ke n o p e rato r ( B l o c ksq ua re) . Th e fe e i s p a i d i n B S PT a n d t h e exe c ut i o n of t h e t ra n sa c t i o n fe e i s p ro gra mme d di re c t ly i nto t h e Pro pTo ke n co nt ra c t . To p reve nt i nfi n i te a cc umul at i o n of fe e co l l e c t i o n , t h e o p e rato r ’s a cco unt i s exe mpte d of t h i s fe e . To l e a r n mo re a b o ut t h e t ra n sa c t i o n fe e st r uc t ure , p l e a se refe r c h a pte r Reve n ue st re a ms. To a cce l e rate e a r ly a do pt i o n , B l o c ksq ua re w i l l di st r i b ute a p o r t i o n of t h e co l l e c te d fe e s to Pro pTo ke n ‘ fi r st ow n e r ’ a cco unt s b a se d o n t h e tot a l a mo unt of B S PT t h ey re ce i ve d di re c t ly afte r a succe ssful Pro pTo ke n ge n e rat i o n eve nt . Th i s fe e sp l i t may b e l i mi te d to a ce r t a i n a mo unt of Pro pTo ke n G e n e rat i o n Eve nt s, w h i l e n o t i me re st r i c t i o n s a re to b e a p p l i e d. I n te r ms, t h i s me a n s b e i n g a ‘ fi r st ow n e r ’ w i l l gra nt yo u l i fet i me fe e co l l e c t i o n o n a l l t ra de s i nvo lv i n g t h e se i n i t i a l , l i mi te d se r i e s of Pro pTo ke n ge n e rat i o n eve nt s.
T h e P ro pTo ken tota l s u p ply is f ixed to 100,000 BSPT toke n s. A p ro p e r t y wo r th US D 1 , 0 0 0 , 0 0 0 would t h e refore result in t h e pricin g 1 https://en.wikipedia.org/wiki/ISO_3166-1_alpha-3#Officially_assigned_code_elements
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Token Flow
PropToken Generation (PTGE)
T h e re are o nly a few ways to ke n s can f low. (1) St raight lin e, token s are c re ate d fo r a s i ngle p u r pose an d de st royed wh en used. (2) T h e p o ke r- c hi p m o del, where t h ey are use d as curre n cy in t h e sys te m, t h en the sys tem providers se n d t h em back to t h e cash ie r to exc h an ge them fo r c a s h. (3 ) Circular, wh ere t h ey exch an ge back an d fo r t h , a s with c u r renc ies .
Ea c h n ew Pro pTo ke n i s ma de ava i l a b l e to use r s t h ro ugh a Pro pTo ke n G e n e rat i o n Eve nt ( PTG E ) . Pa r t i c i p at i o n i n PTG Es i s gra nte d i n exc h a n ge fo r E TH . Th e mi n i mum a n d ma x i mum a mo unt of E TH to b e ra i se d a re p re dete r mi n e d. I n o rde r to a c h i eve fa i r di st r i b ut i o n , B l o c ksq ua re may c h o o se to te st va r i o us mo de l s of PTG Es b efo re set t l i n g fo r a st a n da rd PTG E mo de l .
T h e B l o c ks qu a re sys tem u s es 3 toke n t ypes to f un ct ion : ETH, B SP Ts an d B ST. E T H a nd B ST bot h f low in a circular way, wh ile B SP Ts f l ow s im i la r ly to the ‘poker-ch ip’ mode l.
Th e n umb e r of PTG Es a use r c a n co nt r i b ute to i s sub je c t to t h e use r ’s l eve l . Th e l eve l i s defi n e d by t h e a mo unt of B ST to ke n s a use r h o l ds ( p l e a se refe r to c h a pte r B ST to ke n s) .
E T H i s accepted a s pay m ent in PTGEs (PropToken Gen e rat ion Eve nt s ) an d pro ceeds a re delive red to t h e propert y se lle r. BSPTs ( B l o c k s q ua re Pro pTo kens ) are dist ributed back to t h e PTGE p ar t i c i p ants . T he di s tr i b u ted BSPTs can t h en be eit h er (a) t rade d, o r ( b) re deem ed. B S PT rede mpt ion is t h e result of PropToke n P r i vat i z at io n a nd i s s u bj ec t to ce rt ain rule s an d proce dures (se e c h apte r Pro pTo ken Pr ivatizat ion ). BST is used to remun erate g e n e rate d rent (plea s e refer to ch apte r PropToken Remun erat ion ) an d c an b e then ei ther (a ) traded, or (b) h eld to leve l-up a user’s acco u nt ( s ee c ha pter B ST to ken ). As rent is likely to be collected in F I AT an d rep res ents a flow of f resh capit al into t h e cryptocurren cy m ar ket , B ST to kens a re expected to gain in de man d as t h e n et work of to ke n i zed rea l es tate p ro pert ie s grows.
Blocksquare tokens (BST) Th e B l o c ksq ua re syste m i s de si gn e d to sc a l e . Th e mo re Pro pTo ke n s t h e re a re , t h e mo re va l ua b l e t h e B l o c ksq ua re n et wo r k i s. Th e B ST to ke n a l l ows fo r t h i s grow t h to b e sh a re d w i t h i t s use r b a se a n d offe r s a co mp e n sat i o n met h o d fo r e a r ly a do pt i o n . B ST to ke n s a re E RC 2 0 st a n da rd to ke n s t h at p owe r t h e B l o c ksq ua re p l at fo r m. Th ey gra nt a cce ss PTG Es a n d se r ve to re mun e rate ge n e rate d re nt . B ST to ke n s a re n e e de d by l i ce n se d re a l e st ate p rofe ssi o n a l to p rov i de se r v i ce s w i t h i n t h e B l o c ksq ua re n et wo r k e .g. use re a l e st ate to ke n i z at i o n to o l s a n d c re ate Pro pTo ke n G e n e rat i o n Eve nt s ( PTG Es) . Ho l di n g B ST o n a n E RC 2 0 co mp at i b l e wa l l et a l l ows re gul a r use r s to p a r t i c i p ate i n PTG Es. Pa r t i c i p at i o n l eve l t h re sh o l ds a re n ot p re dete r mi n e d a n d sub je c t to p e r i o di c re c a l c ul at i o n s b a se d o n B ST to ke n p r i c i n g. Pa r t i c i p at i o n i s sub je c t to w h i te l i st i n g co nt r i b ut i o n a ddre sse s a n d may a l so b e se co n da r y to K n ow Yo ur C usto me r ( K YC ) n o r ms a n d A nt i Mo n ey L a un de r i n g ( A M L ) ve r i fi c at i o n p ro ce dure s i n o rde r to co mp ly w i t h a ut h o r i t y re q ui re me nt s.
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Proof of Title Protocol (POT) W i t h Et h e reu m a nd the u nderlyin g te ch n ical merger of blockch ain te c h n o l o gy a nd co ded o b j ec t s, t h e ide a of token izin g real world as s et s h as beco m e rea lity. Tran sfe rrin g real world value ove r t h e i nte r net po s es the need to int roduce a syste m to securely l i n k t h e s e co ded o bj ec ts , referre d to as smart cont ract s, to t h e c u mb e r s o m e s tr u c tu res of various n at ion al lan d regist ries.
p rov i de r i s use d to e n sure a udi t a b l e gua ra nte e a n d co n n e c t t h e o ut si de wo r l d w i t h a de ce nt ra l i ze d a p p l i c at i o n o n t h e b l o c kc h a i n . Pl e a se refe r to t h e Pro of of Ti t l e te c h n i c a l p a p e r fo r a mo re i n de pt h de sc r i pt i o n of t h e p roto co l a n d h ow we co n n e c t Pro pTo ke n sma r t co nt ra c t s w i t h t ra di t i o n a l l a n d re gi st r i e s. Th e p a p e r c a n b e fo un d h e re .
Et h e re u m s m a r t co ntra c ts are programs run on a blockch ain , w i t h u n i qu e attr i b u tes co m pared to ot h e r forms of sof t ware. T h e p ro g ra m its elf is reco rde d on t h e blockch ain , wh ich gives i t c h arac ter i s tic s li ke p er m an en ce, ce n sorsh ip re sist an ce an d i r reve r s i b ili ty. Once a n Ethere um smart cont ract is deploye d to t h e b l o c kcha i n its inter na l logic can’ t be ch an ged. Th is in te rms m e an s any li ne wr itten i n the smart cont ract w ill always be pre se nt an d c an n ot be m o di fi ed at a later st age. Blocksquare makes use of t h e s e c ha ra c ter i s tic s by copyin g propert y spe cif ic informat ion f ro m l an d regi s tr i es a nd i nc ludin g it in PropToken smart cont ract s. O n t h e l and reg i s tr y s ide, a n ote cont ain in g t h e PropToke n smart co nt rac t ha s h a ddres s is a dd e d to t h e t it le . W h e re l an d reg i s tr y data is accessible on lin e, t h e Proof of Tit le p roto co l p er i o di c a lly rea ds t h is informat ion in t h e PropToke n s mar t co ntra c t a nd co m p a res it w it h informat ion pulle d f rom a t r u s te d s ou rce s u c h a s the la nd regist ry. An exte rn al oracle service
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Blocksquare Network Reserve Fund Pro pTo ke n s co nt r i b ute to t h e B l o c ksq ua re Net wo r k Re se r ve Fun d set a si de fo r cove r i n g sc h e dul e d, ro ut i n e a n d un sc h e dul e d ex p e n se s re l ate d to o p e rat i n g, ma i nt a i n i n g o r i mp rov i n g p ro p e r t i e s i n t h e B l o c ksq ua re n et wo r k. Th e re se r ve fun d ma i n p ur p o se i s to fi n a n ce l a rge r ex p a n se s t h at c a n n ot b e cove re d fro m re gul a r re nt i n co me . 5 % of t h e p ro ce e ds re ce i ve d dur i n g a Pro pTo ke n ge n e rat i o n eve nt a re di re c te d to t h e re se r ve fun d. Afte r t h at , t h e fun d co nt ro l s a n d ma i nt a i n s a l l Pro pTo ke n b a l a n ce s at a l l t i me s. Th e refo re , e a c h re mun e rat i o n of ge n e rate d re nt i s sub je c t to a n a l l o c at i o n to t h e re se r ve fun d i n o rde r fo r t h e Pro pTo ke n to ma i nt a i n a b a l a n ce c l o se to i t s i n i t i a l st ate . Th e re se r ve fun d i s h e l d i n B ST to ke n s, w h e re a ce r t a i n p e rce nt a ge co ul d b e h e l d i n ot h e r c r ypto c ur re n c i e s to h ave a mo re di ve r si fi e d fun d p o r t fo l i o .
PropToken Governance P ro pTo ke n s prov i de a g ove rn an ce f un ct ion for involve d s t ake h o l d er s to have co ntro l over t h e most import ant aspect s of t h e u n d e r ly ing rea l es tate propert y. Th e de cision s t aken may h ave s i g n i f i c ant i nflu ence over how t h e invest ment is man aged an d t h e o u tco me s it m ay p ro du ce. G ove r n an ce fo r Pro pTo kens t ake s example f rom Robe rt ’s Rule of O rd e r 1 , b u t u lti m ately fo l low t h eir programme d gove rn an ce m o d e l . Bec a u s e voting div i d es a group into w in n ers an d losers, w h i c h i s n ot favo ra b le fo r a ny collaborat ive e nviron me nt , vot in g i s l i m i te d to tho s e a c ti o ns co n side red absolute ly n e cessary. Most m ot i o n s a re p res et a nd s ta keh olde rs can sign al on t h e subje ct at any g i ve n m o m ent. T he m a i n pre set mot ion s are : • p ro p e r ty m a na g er c ha nge • reve nu e s trea m c ha nge • p ro p e r ty exp endi tu re St ake h o l der s have the a b i lity to put forward t h e se preset mot ion s by i nte rac ti ng wi th the res pect ive smart cont ract . By sen din g B SP T to t h e co ntra c t the s ta ke h olde r vote s a request for ch an ge, fo r t h e p ro per ty of the s ent BSPT. To abst ain mean s to oppose t h e w i s h to c ha nge, m ea ning n o course of act ion is n e e de d for 1 https://en.wikipedia.org/wiki/Robert%27s_Rules_of_Order
st a ke h o l de r s t h at do n ot w i sh fo r a c h a n ge . Ea c h st a ke h o l de r ’s i nfl ue n ce i s we i ghte d by t h e n umb e r of B S PT h e l d o n t h e a cco unt use d to ma ke t h e t ra n sa c t i o n a n d n ot t h e a mo unt t ra n sa c te d. Th e p ro p o sa l i s a cce pte d by re a c h i n g sup e r ma jo r i t y co n se n sus b a se d o n t h e e nt i re me mb e r sh i p i .e . 1 00,000 B S PT, w i t h a sup e r ma jo r i t y t h re sh o l d set at 6 0% . Wh e n t h e t h re sh o l d i s met , t h e c h a n ge re q ue st i s p ut fo r wa rd.
PropToken Governance Th e p ro ce ss of c h a n gi n g a p ro p e r t y ma n a ge r i nvo lve s vot i n g o n t h e succe sso r. I n a n i de a l sce n a r i o , a co mme rc i a l p ro p e r t y n e e ds to h ave a co mp ete nt p ro p e r t y ma n a ge r at a l l t i me s. To fa c i l i t ate t h e de c i si o n - ma ki n g p ro ce ss fo r a n ew p ro p e r t y ma n a ge me nt co mp a ny, B l o c ksq ua re w i l l a c t i n t h e i nte re st of t h e st a ke h o l de r s a n d co nt a c t va r i o us l o c a l p ro p e r t y ma n a ge r s a n d p re se nt t h e m to t h e Pro pTo ke n st a ke h o l de r s. A vote i s t h e n c a st o n t h e p re se nte d o pt i o n s w h e re e a c h st a ke h o l de r ’s i nfl ue n ce i s we i ghte d by t h e n umb e r of B S PT h e l d o n t h e a cco unt use d to ma ke t h e t ra n sa c t i o n a n d n ot t h e a mo unt t ra n sa c te d. Th e p ro p e r t y ma n a ge r t h at re ce i ve s t h e h i gh e st sup p o r t of t h e e nt i re me mb e r sh i p i .e . 1 00,000 B S PT i s a cce pte d. B l o c ksq ua re w i l l t h e n co o rdi n ate t h e t ra n si t i o n p ro ce ss to t h e n ew p ro p e r t y ma n a ge r.
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Revenue Stream Change As w i t h c h a ng i ng pro per ty m an age r, t h e se lect ion of an altern at ive reve n u e s trea m is s u bj ec t to vote . De pen din g on t h e propert y t y p e , var i ou s revenu e s trea m st rategies may be adapte d for t h e P ro pTo ke n i n q u es ti o n. In gen e ral st akeh olde rs will h ave t h e ab i l i t y to cho o s e between (a ) lon g te rm an d (b) sh ort term te n ant s, t h e refo re , if the revenu e s tream ch an ge request is put forward, t h e p ro p e r ty m a na g er co m p any w ill act accordin gly to t h e n ew ly c h o s e n revenu e s trea m .
Property Expenditure T h e ab i l i t y of co m m erc ia l rea l e st ate to provide st ron g rent in come h as l o n g been o ne of i ts b e n ef it s of in clusion into a lon g-term p o r t fo l i o . However, exp endi ture s due to on goin g cost s, propert y re p ai r s an d po s s ible i m p rovement s can h amper t h e rent in come of co m m erc i a l pro per ties a nd mislead st ake h olde rs into makin g m i s g u i d e d dec i s i o ns . To co nt rol prope rt y relate d expen dit ure s, P ro pTo ke n s ta keho lder s have t h e abilit y to mon itor an d act on t h e s e ac t iv i ti es direc tly thro ugh t h e Blocksquare plat form.
Ongoing Costs Re al e s t ate owner s hi p co m e s w it h on goin g cost s an d bills t h at s h o u l d b e ta ken into co ns iderat ion . Th e good t h in g is t h at most of t h e o n g o i ng co s ts a re rec u r rin g an d can be fairly well predicte d i n ad van ce in a co m m erc i a l prope rt y’s busin ess plan . As t h is co s t s c an not b e wa i ved, the st ake h olde rs w ill h ave n o on ch ain g ove r n an ce o ptio ns . A ny decision s re gardin g possible ch an ge s re l ate to thi s expendi tu re category (e. g. ch an gin g elect ricit y s u p p l i e r, IS P, etc .) wi ll be p laced in t h e h an ds of t h e propert y m an ag e ment s er v ice p rov i der. T h e o n g o ing co s ts exp endi ture category in clude s: • • • •
co u n ci l rates a nd ta xes u t i l i t y b i lls a nd co nnec ti on cost s s t rat a fees b u i l d ing a nd co ntents i nsuran ce
Property Repairs A re p ai r i s m a intena nce that is n ecessary to kee p t h e prope rt y i n wo r k i n g co ndi ti o n. Repa i r s do n ot add sign if icant value to t h e p ro p e r t y or extend its life. T h ey are reason able in amount an d are n e ce s s ar y to keep the p ro pert y in h abit able con dit ion . Repairs are g e n e ra lly co ns idered restorin g an ite m to it s previous good co n d i t i o n e.g . refi ni s hing a wood f loor, re paint in g a room, repairin g a ro of, re p a i r i ng exis ti ng plu mbin g, re pairin g exist in g applian ce s, re p l ac i n g a do o r kno b , rep lacin g a win dow, re placin g a broke n s mo ke d etec to r, repla c i ng rot te d f loorboards, replacin g cracked f l o o r t i l e s etc .
ma n a ge r n ot i fi e s t h e co mmun i t y of t h e i r ma i nte n a n ce i nte nt i o n s a n d may p ro ce e d i f n o o n e o b je c t s b efo re t h e sp e c i fi e d de a dl i n e . Not i fi c at i o n s a re p o ste d t h ro ugh t h e B l o c ksq ua re p l at fo r m a n d v i si b l e o n t h e Pro pTo ke n’s det a i l s p a ge . Th e b e n efi t s of l a z y co n se n sus i n c l ude t h e fa c t t h at i n t h e a b se n ce of a n o b je c t i o n t h e p ro p e r t y ma n a ge r c a n a ssume h e h a s co n se n sus. St a ke h o l de r s w i t h n o o b je c t i o n a n d n ot h i n g to a dd to t h e ma i nte n a n ce a c t i v i t y n e e d t a ke n o a c t i o n . L a z y co n se n sus re move s t h e r i sk of sl i p p i n g i nto de sp ot i sm si n ce st a ke h o l de r s co n se n sus i s st i l l re q ui re d. No ma jo r ma i nte n a n ce i s ma de w i t h o ut t h e i mp l i c i t a p p rova l of t h e st a ke h o l de r s a n d so n o b o dy c a n p rote st at a l ate r date . To fa c i l i t ate p ro p e r t y ma i nte n a n ce , a n ex p e n di t ure a l l owa n ce i s set fo r t h e p ro p e r t y ma n a ge r. Wh e n ma i nte n a n ce co st s a re ex p e c te d to exce e d t h e a l l owa n ce , t h e p ro p e r t y ma n a ge r i s re q ui re d to n ot i fy st a ke h o l de r s. Th e p ro p e r t y ma n a ge r i n ce nt i ve i s to ke e p st a ke h o l de r s h a p py a n d ke e p h i s b usi n e ss a n d fe e co l l e c t i o n r un n i n g.
Property Improvements A n i mp rove me nt i s a ny t yp e of re n ovat i o n t h at w i l l ex te n d t h e ‘ useful l i fe’ of t h e p ro p e r t y. I n t h e o r y i t may a dd va l ue to t h e p ro p e r t y fo r ye a r s to co me . I mp rove me nt s a re ge n e ra l ly co n si de re d a ddi n g so met h i n g t h at wa s n ot p rev i o usly t h e re , up gra di n g so met h i n g t h at wa s ex i st i n g o r a da pt i n g t h e a sset to a n ew use . E xa mp l e s i n c l ude , b ut a re n ot l i mi te d to : a ddi n g ce nt ra l a i r co n di t i o n i n g, i n st a l l i n g a se c ur i t y syste m, i n st a l l i n g b ra n d n ew c a r p et , re p l a c i n g a n e nt i re ro of, re p l a c i n g a l l ex i st i n g p l umb i n g, re p l a c i n g a l l ex i st i n g e l e c t r i c , re n ovat i n g a ki tc h e n , re p l a c i n g a l l w i n dows etc . Property improvement proposals can be initiated by any stakeholder o r t h e p ro p e r t y ma n a ge r. I mp rove me nt s a re usua l ly mo re i nte n si ve t h a n re p a i r s, i nvo lve gre ate r co st s a n d a re ge n e ra l ly b o un d to ge o gra p h i c l o c at i o n of t h e p ro p e r t y. Th e refo re , i mp rove me nt p ro p o sa l s a re ex p e c te d to b e c a r r i e d o ut by t h e p ro p e r t y ma n a ge r o n b e h a l f of t h e st a ke h o l de r s, w h e re t h e st a ke h o l de r s a re re q ui re d to vote o n t h e p re se nte d i mp rove me nt s. Ea c h st a ke h o l de r ’s i nfl ue n ce i s we i ghte d by t h e n umb e r of B S PT h e l d o n t h e a cco unt use d to ma ke t h e vote t ra n sa c t i o n a n d n ot t h e a mo unt t ra n sa c te d. Th e i mp rove me nt p ro p o sa l t h at re ce i ve s t h e h i gh e st sup p o r t of t h e e nt i re me mb e r sh i p i .e . 1 00,000 B S PT i s a cce pte d. Pro p e r t y i mp rove me nt co st s a re p a i d fro m t h e B l o c ksq ua re Net wo r k Re se r ve Fun d. Fo r safet y p ur p o se s, B l o c ksq ua re ret a i n s veto p owe r o n a ny p ro p e r t y i mp rove me nt de c i si o n s a n d ove r l o o ks t h e fi n a n c i n g a n d i mp rove me nt i mp l e me nt at i o n p ro ce ss.
D u e to t he natu re of p ro pert y re pairs, mainten an ce act ivit ies are s u b j e c t to a la zy co ns ensus approach , w h e re t h e prope rt y
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PropToken Privatization P ro pTo ke n Pr i vati z atio n i s t h e process of t ran sfe rrin g on e’s p ro p e r t y ri g hts off c ha in. In te rms t h is me an s on e must re de e m 1 0 0 , 0 0 0 to kens of a n i ndi vidual PropToken . Th e mot ion for P ro pTo ke n Pr ivatizatio n c a n be in it iated by a majorit y st ake h olde r co nt ro l l i n g at lea s t 8 0 , 0 0 0 B SPT. T h e m aj or i ty s ta keho lder c an ch oose to place a ten de r of fe r t h ro u g h a s m a r t co ntra c t to acquire t h e re main in g 20% of BSPT i n c i rc u l at io n, u s u a lly at a premium f rom current market price, g i v i n g mi no r i ty s ta keho lder s e n ough in cent ive to se ll. For t h e Te n d e r Offer Co ntra c t to succee d, t h e majorit y st ake h olde r n e e d s to co m e to co ntro l at le ast 9 0% of t h e tot al 100,000 BSPT. B l o c k s q u are wi ll then help an d of fer guidan ce to t h e majorit y s t ake h o l d er tro u g ho u t the PropToken Privat izat ion proce ss.
90,000 B S PT w i t h o ut i n i t i at i n g a Te n de r Offe r C o nt ra c t ( i .e . b uys t h e m o n t h e de ce nt ra l i ze d exc h a n ge) . To mi t i gate r i sk of fo ul p l ay i n suc h sce n a r i o s, B l o c ksq ua re c a l c ul ate t h e mi n i mum E TH co mp e n sat i o n a mo unt a n d set- up t h e TOC . To b et te r un de r st a n d h ow t h e Te n de r O ffe r C o nt ra c t c a l c ul ate s b o n use s, we c re ate d a si mp l i fi e d sp re a dsh e et c a l c ul ato r t h at yo u c a n rev i ew h e re . Eve n t h o ugh t h e sp re a dsh e et c a l c ul ato r do e s t a ke i nto a cco unt fo r B l o c ksq ua re fe e s, p l e a se n ote i t do e s n ot do so fo r Et h e re um n et wo r k fe e s.
To i n i t i ate a Tender Offer Co nt ract (TOC ), t h e majorit y st ake h olde r n e e d s to s et- u p the Tender Of fe r C ont ract by select in g t h e st art d ate , e n d date a nd Pro pTo ken addre ss. Th e majorit y st ake h olde r n e e d s to then s end the total amount of ETH inten de d to set t le b efo re t h e tender offer s ta r t date . On ce t h e ETH t ran sact ion is co nf i r me d, the m i no r i ty s ta keh olde rs can be gin se n din g t h e ir to ke n s . T he Tender Offer Co nt ract awards a bon us to favour e arly s e l l e r s b a s ed o n the fo llowi ng bon us sch e dule: • • • • •
D ay D ay D ay D ay D ay
1 = 20 % bo nu s 2 = 1 5 % b o nu s 3 = 1 0 % bo nu s 4 = 5 % b o nu s 5+ = no b o nu s
T h e b o n us c a n b e co ns i dered as a re allocat ion met h od of t h e p re m i u m offered by the m a jorit y st ake h olde r. Th e bon use s are c al c u l ate d after ea c h bo nu s period en ds, follow in g dist ribut ion of B SP T an d E T H to p a r ti c ipa nts an d Te n de r Of fe r Cont ract in it iator ( m aj o r i t y s ta keho lder ). T h e Te n d e r Offer Co ntra c t rewards early act ion in a fair man n er, m e an i n g , if a ll rem a i ni ng B S PT toke n s were to be se nt durin g t h e s am e d ay, a ll m ino r ity s ta keh olde rs would get t h e same amount of E T H p ro po r tio na lly to their BSPT sh are. A Te n d e r O ffer Co ntra c t ends w h e n on e of t h e follow in g con dit ion s i s m et : • If t h e i ni ti ato r s u cceeds an d h olds at least 90,000 BSPT by s pec i fi ed end date, the TOC last s unt il t h e last BSPT to ke n is s ent to the tend e r of fer in it iator. • If t h e i ni ti ato r fa ils to rece ive at least 90,000 BSPT by s p e c ified end date, the TOC en ds at specif ied e n d date. T h i s me an s , o nce the 90 % t h resh old is re ach e d, t h e majorit y s t ake h o l d er is deem ed a s th e sole st akeh olde r. Any e nt it y st ill h o l d i n g B S PT m ay c la im i ts compen sat ion t h rough t h e TOC, as t h e TO C will be ava ila ble u p unt il t h e last BSPT is t ran sacted. I n o rd e r to receive the green light for PropToken Privat izat ion , t h e m aj o r i t y sta keho lder is require d to of fer ETH as compen sat ion t h ro u g h a TOC even in event s w h e re h e or sh e come s to h old
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PropToken Remuneration
PropToken Right-To-Use
Ho l d i n g BS PT to kens of a s pecif ic PropToken cont ract , en able s t h e h o l d e r to co llec t B ST to kens gen e rated by t h e lin ked re al e st ate p ro p e r t y. B lo c ks qu a re u s es t ran sact ion an d account in g dat a re co rd e d o n the Ethereu m blockch ain to calculate pe r account B ST al l owa nces , ba s ed o n the use r’s BSPT port folio.
A p a r t fro m b e i n g re nte d- o ut , a ny ava i l a b l e sh o r t- te r m re nt a l p ro p e r t y w i t h i n t h e B l o c ksq ua re Net wo r k c a n a l so b e re se r ve d a n d use d by B S PT to ke n h o l de r s. Ti me sl ot s at t h e se p ro p e r t i e s a re re se r ve d o n a fi r st- co me b a si s i n exc h a n ge fo r B ST to ke n s. A use r ’s r i ght- to - use i s di st r i b ute d i n fo r m of B ST to ke n s b a se d o n t h e h o l di n g p e r i o d of e a c h set of B S PT to ke n s i n a p o r t fo l i o .
B ST to ke ns a llow u s er s to exercise t h e ir right to use any available p ro p e r t y withi n the B lo c ks quare Net work in a similar man n e r as p o i nt s i n a tim es ha re va cat ion club f un ct ion . Th e refore , t h e B ST to ke n a llo c ati o n of a B SPT toke n h olde r can be regarded as a to ke ni zed rep res entati o n of t h eir right-to-use . Th e use r may d e c i d e i f a nd how to u s e propert ie s by t ran sfe rrin g t h eir BST to ke n s . B ST to kens c a n a ls o be sold at any t ime on any exch an ge l i s t i n g t h e B ST to ken.
S o me B S PT to ke n s p ro duce mo re B ST t h a n ot h e r s de p e n di n g o n t h e un de r lyi n g p ro p e r t y p e r fo r ma n ce . B S PT h o l de r s c a n i nfl ue n ce a Pro pTo ke n p e r fo r ma n ce by re gul a r ly mo n i to r i n g a c t i v i t y a n d w i e l di n g t h e i r gove r n me nt r i ght s ( se e c h a pte r Pro p e r t y G ove r n a n ce) .
PropToken Decentralized Exchange I n o rd e r to a c hieve p er m i s sion less liquidit y of toke n ize d real e s t ate as s ets , a decentra lized exch an ge protocol is integrated in t h e p l at for m . T he exc ha ng e protocol use d for deve lopme nt is t h e 0 x p ro j e c t . o rg o p en s o u rce p rotocol.
B l o c ksq ua re w i l l l i mi t exc h a n ge se r v i ce s o n ly to B S PT/E TH p a i r s to e n sure e a si e r o rde r matc h i n g, b ut ul t i mate ly a use r c a n c h o o se to p l a ce a b uy/se l l B S PT ( B l o c ksq ua re Pro pTo ke n ) o rde r w i t h a c usto m c r ypto c ur re n cy p a i r t h ro ugh a ny de ce nt ra l i ze d exc h a n ge p roto co l .
T h e d o c u m entati o n of the 0x exch an ge protocol can be foun d h e re an d t he a bs tra c t fro m th e wh itepape r quotes: “. . .a p roto col tha t fa cilita te s low f ri ct i o n peer-to -peer exchange of E R C 2 0 to k e ns on the Ethe re um blo ckchain. T he proto co l is intended to s e r ve as a n op e n sta nd a rd and co mmo n bu ildi ng blo ck, driving i nte ro p e rab ility a mong d e ce nt rali zed appli cat io ns (dApps) t hat i n co r p ora te excha ng e functi o nali t y. Trades are execu ted by a sy s te m of Ethe re um sma rt cont ract s t hat are pu bli cly acces- sible, fre e to u s e a nd tha t a ny d App can ho o k into . DApps bu ilt o n to p of t h e p rotocol ca n a cce ss pu blic li qu idit y po o ls o r create t heir ow n li q u i dity p ool a nd cha rge t ransact io n fees o n t he resu lt i ng vo lu m e . T he p rotocol is unopinio nated: i t do es not i mpo se co st s on i t s u s e rs or a rb itra rily ex tract valu e f ro m o ne gro u p of u sers to b e n ef i t a nothe r. De ce ntra lize d governance i s u sed to co nt i nu o u sly a n d s e c u re ly inte g ra te up d ates into t he base proto co l wit ho u t d i s r u pt i n g d Ap p s or e nd use rs.”
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Blocksquare Network Participants B l o c k s q u are is a netwo r k of toke n ize d real e st ate prope rt ie s, t h at u s e s t h e Pro of of T itle protocol to lin k propert y specif ic smart co nt rac t c a lled Pro pTo kens to lan d regist ry dat a. A plat form built o n to p of the netwo r k a llows users inte ract ion . A user may be c l as s i f i e d a s a (1 ) regu la r u s er, an d (2) se rvice provider.
must a l so b e l i n ke d to a ma r ket re a dy p ro p e r t y to p a ss PTG E e l i gi b i l i t y. I n fut ure , se r v i ce p rov i de r s may a l so co me a s re a l e st ate b i g dat a p rov i de r s, IoT so l ut i o n p rov i de r s o r co mp a n i e s deve l o p i n g A I fo r re a l e st ate ma r ket s.
Re g u l ar u s er s a re a llowed to se arch toke n ize d prope rt ie s, acce ss o n g o i n g PTG Es (Pro pTo ken Ge n e rat ion Eve nt s), use PropToken r i g ht s ( p ro p er ty a cces s a nd govern an ce) an d t rade BSPT toke n s u s i n g t h e Pro pTo ken D ecentralize d Exch an ge . Se r v i ce p rov ider s a re u s er s t h at of fe r various se rvices wit h in t h e B l o c k s q u are netwo r k. Ini ti a lly t h e se w ill ran ge f rom real e st ate ag e nt s , rea l es tate bro ker s , prope rt y man agement providers to p ro p e r t y ho ldi ng co m p a nies . All se rvice providers n ee d to receive a ce r t i f i c atio n thro u g h o nline we bin ars an d course s in order to of fe r s e r v ices wi thin the network. Cert if icat ion will en sure se rvice p rov i d e r s a re knowledg ea b le of t h eir count ry’s laws an d regulatory e nv i ro n m ent. B efo re a cer ti fi ed b ro ker is able to use token izat ion tools an d c re ate a PTGE , the b ro ker m ust select a prope rt y man age r an d a p ro p e r t y ho ldi ng co m p a ny fo r t h e PropToken asset . Th e PropToke n
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financials
Revenue streams In order to achieve profitability a fee collection system is integrated into the Blocksquare system providing 2 main revenue streams: • B SP T tra de tra ns a c ti o n fee s • P ro pTo ken generatio n eve nt fe e • P TG E va li dato r s fee
BSPT trade transaction fee Trad i n g Pro pTo kens i s s u b j ect to fee s. Th e t ran sact ion fe e is i m p l e me nted i nto the Pro pTo ke n cont ract . Wh e n ever a t ran sact ion f ro m o n e a cco u nt to a nother is in it iate d, a 2% fee is collected f ro m t h e i nitiato r a nd s p li t i n t h e follow in g man n e r: • 0 . 3 % → Pro pTo ken Creato r i n ce ntiv ise s re a l e sta te expert s to u se Blo cksqu are and s e ll t he ir p rop e rtie s a s to kens. • 0 . 3 % P ropTok e n First Buyers i n ce ntive to p a rticip a te in Pro pTo ken G enerat i o n Event s (PTG Es) a nd fina nce tok e ni zat i o n of real estate pro pert ies. • 0 . 4% → B lo c ks q u a re Fo u ndat ion fu n d s use d to cove r d eve lo pment and mai ntenance co st re la te d to the Block sq ua re net wo rk, proto co ls, plat fo rm, d e ce ntra lize d excha ng e and ot her co mpo nent s t hat may b e i m p le me nte d into the system at a later stage. • 1 % → B lo c ks qu a re Netwo r k Re se rve Fun d fu n d s use d for cove ring schedu led, ro u t i ne and u n s c he d ule d ex p e nse s re lated to o perat i ng, mai ntaining or i m prov ing p rop e rtie s in t he Blo cksqu are net wo rk. T he re s e r ve fund ma in p urp ose i s to f i nance larger expanses t h a t ca n not b e cove re d f ro m regu lar rent inco me.
PropToken generation event fee C re at i n g a Pro pTo ken generat ion eve nt is subject to a 1,5% fe e b as e d o n the tota l a m o u nt raised. Th is fee allows Blocksquare to of fe r p ro p er c u s to m er s u pport to re al e st ate expert s. On ce t h e to ke n i z at io n to o ls a nd pro ces se s are f ully automate d, Blocksquare w i l l b e ab le to o m i t thi s fee.
PTGE validators fee C re at i n g a Pro pTo ken g enerat ion eve nt is subject to a 0,5% fe e b as e d o n the tota l a m o u nt raised. Th is fee is dist ribute d to PTGE val i d ato r s that ver ify a ll p ropert y t it le relate d docume nt s an d p ro ce d u re s a re va li d. T he validator must place a st ake (in BST to ke n s ) i n o rder to b e eligi ble for validat ion . Th e reward fee is s p l i t am o ng s t pa r ti c ipating validators.
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Blocksquare market structure B l o c k s q u are i s c reati ng the n e e de d inf rast ruct ure to kickst art an d sup p o r t a n ew ma r ket w h e re C RE i s so l d i n a to ke n i ze d fa sh i o n , d e c re as i n g s eco nda r y m a r ket t rade f rict ion , in creasin g asset liquid i t y, t h us un l o c ki n g va l ue . Th i s un l o c ke d va l ue w i l l p ush re a l e st ate p rofe s s i o n a ls to levera ge B locksquare, but on ly if t h ey see lon g te r m p ote nt i a l i n do i n g so . Th e refo re , t h e fe e s st r uc t ure n e e ds to e s t ab l i s h a nd a li g n incenti ves for market makers.
Assumptions: Average Pro pTo ken valu e at Pro pTo ken Gen erat io n Event ( U S D)
5 00,000
24h market exchange vo lu me (~1 /3 of cu r rent cr ypto c u r ren cy 2 4 h exc h an ge vo l . ) Average per u ser total i nvest ment ( U S D)
1% 2 5 ,000
Blocksquare Market Participants Incentives Tota l BSPT excha nge tra nsa ction fe e s :
tot al 2 %
I. Pro pTo ken Issu ers (e.g. cert i f i ed R E p rofes s io n al )
0.3%
II. Pro pTo ken Fi rst Bu yers (part i c ip ant s in PTGE)
0.3%
III. Blo cksqu are Net wo rk Reserve Fu n d
1%
IV. Blo cksqu are
0.4%
PropToken Generation Event (PTGEs ) fe e s :
2%
Pro pTo ken G enerat i o n Event s - Val idato r s fees
0.5 %
Pro pTo ken G enerat i o n Event s - Infras t r u ct u re P rovider fees ( B lo cks qu are)
1 .5 %
Blocksquare Market Simulation Assumptions:
ye ar 2
ye ar 3
ye ar 5
5 , 000
70, 000
5 00, 000
2 , 5 00, 000, 000
3 5 , 000, 000, 000
2 50, 00, 000, 000
1 00, 000
1 , 4 00, 000
1 0, 000, 000
2 5, 000, 000
3 50, 000, 000
2 , 500, 000, 000
5 4,75 0,000
76 6 ,5 00,000
5 ,475 ,000,000
Pro pTo ken Issu er fees (E xchange )
2 7, 375, 000
3 83 , 2 5 0, 000
2 ,7 37, 5 00, 000
Pro pTo ken Fi rst Bu yers fees
2 7, 375, 000
3 83 , 2 5 0, 000
2 ,7 37, 5 00, 000
Pro pTo ken G enerat i o n Event s - Val idato r s fees
1 2 , 500, 000
175, 000, 000
1 , 2 5 0, 000, 000
74,000,000
1,03 6 ,000,000
3 ,6 5 0,000,000
Pro pTo ken E xchange fees
3 6, 5 00, 000
5 1 1 , 000, 000
3 ,650, 000, 000
Pro pTo ken G enerat i o n Event s - B lo c ks qu are fees
37, 5 00, 000
5 2 5 , 000, 000
fee o mit ted
9 1,2 5 0,000
1,2 77,5 00,000
9 ,12 5 ,000,000
232 million
3,2 billion
19,5 billion
Pro pTo ken Pro pert ies Total Pro pTo ken Market Cap (US D) Nu mber of Act ive Users 24h E xchange Vo lu mes (US D) Distributed to Network Pa rticipant s (U S D):
Blocksqua re Revenues (USD):
Blocksqua re Network Reserve Fun d (U S D)
Total Annual Market Turnover (USD)
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Startup Funding T h e tot al s u pply of B ST to ken s ef fect ively re pre se nt s 100% of t h e n et wo r k’s . B ST to kens a llow use rs access to t h e n et work an d i t s s e r v i ce s . T he received fu n ds will be used to f urt h e r develop t h e n e e d ed infra s tr u c tu re, grow t h e user base an d expan d t h e n et wo r k . We c u r rently fo res ee t h e expen dit ure of collected f un ds to b e d i rec ted i n fo r the fo llowin g act ivit ies:
Presale
( Id e a D eve lo p m ent, MV P, Product Ide nt if icat ion , Market place O r i e nt at i on, Dem o gra phic Ta rget in g, Team Cre at ion , Crowdsale Mar ket i n g, Co m m u nity Growth )
Series A
di st r i b ut i o n eve nt s c a n h ave a si gn i fi c a nt i mp a c t o n o ur a b i l i t y to de l i ve r a gl o b a l n et wo r k fo r t h e re a l e st ate i n dust r y. Yo u c a n re a d mo re a b o ut o ur re se a rc h o n t h e to p i c , t h e mot i vat i o n s b e h i n d i t a n d si mul at i o n s b a se d o n p rev i o us co i n offe r i n gs dat a i n t h e b l o g p o st t i t l e d “I CO s, do n’ t b i te off mo re t h a n yo u c a n c h ew.” by B l o c ksq ua re’s co - fo un de r De n i s Pet rovc i c . Th e to ke n sa l e mo de l i s set to di st r i b ute 6 0% of t h e tot a l B ST to ke n sup p ly usi n g t h e b e l ow di st r i b ut i o n sc h e dul e .
Motivations for a multi-series token sale model
( P ro d u c t Develo p ent, A lpha / Bet a Test in g, Market Validat ion , Te am E x p a ns io n 1 )
Series B
(O f f i c i al Relea s e, Pro du c t D ist ribut ion , Market Grow t h , Team E x p an s i o n 2)
A n ge l i nve sto r s a n d VC s t ra di t i o n a l ly fun d n ew co mp a n i e s i n mul t i p l e ro un ds. Th ey offe r i n i t i a l se e d c a p i t a l to l et a te a m p rove i t s co n ce pt , deve l o p a wo r ki n g p rotot yp e , va l i date t h e ma r ket , a n d o n ly afte r t h e te a m sh ows t h e c a p a b i l i t y, t h ey’ re a b l e to ra i se mo re fun ds to grow a n d e st a b l i sh t h e b usi n e ss fur t h e r. Th i s way t h e b ui l di n g a n d fun di n g i te rat i o n ke e p s a l l i nvo lve d p a r t i e s mot i vate d to a c h i eve a n d de l i ve r o n p ro mi se s ma de .
Future Series (C, D, E...)
( P ro d u c t Optim i z atio n, Glo b a lizat ion , Acquisit ion s, Global G row t h )
Multi-series token sale model B l o c k s q u are will fo llow a mult i-serie s token sale model to d i s t r i b u te the B ST to ken a nd raise f un ds for deve lopme nt . Th e m ai n g o a l is to a cco m m o date lon g term grow t h by allowin g g rad u al r unway extens i o n. Base d on our an alysis of previous to ke n s al es , we eva lu ated t h at raisin g f un ds in mult iple toke n
Ta ki n g o ur fun di n g go a l s t h ro ugh mul t i p l e fun di n g ro un ds h e l p s B l o c ksq ua re st a n d o ut a s a l o n g te r m p ro je c t . Our te a m’s i n ce nt i ve i s to ke e p p ush i n g a n d e a r n t h e r i ght to go fo r t h e n ex t fun di n g ro un d. L a st b ut n ot l e a st , i t se n ds a c l e a r me ssa ge to t h e i nte re ste d co mmun i t y t h at t h e te a m i s fo c use d o n de l i ve r i n g.
presale
series a
future series
10,000,000 BST
10,000,000 BST
40,000,000 BST
t arget fu nding 1 MM USD
t arget f un din g 5 M M U S D
t a rget fun di n g 1 00M M + U S D
Q4 2017
10% of total supply
Q1 2018
10% of total supply
2019+
40% of total supply
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MULTI-SERIES TOKEN SALE MODEL funding targets & distribute BST tokens per series 20MM BST
100MM USD
15MM BST
75MM USD
10MM BST
50MM USD
5MM BST
25MM USD
pres a le
Serie s A
Serie s B
Serie s C
Fut ure Ro un ds
projected BST price 4.32 USD
5.00 USD 4.00 USD
2.16 USD
3.00 USD
1.35 USD
2.00 USD 1.00 USD
0.10 USD
0.50 USD
0.00 USD
pres a le
Se rie s A
set price, before BST tokens hit exchanges
Se rie s B
Se rie s C
Fut ure Ro un ds
projected market pricing to match funding targets in above chart
presale
series a
future series
10,000,000 BST
10,000,000 BST
40,000,000 BST
t arget fu nding 1 MM USD
t arget f un din g 5 M M U S D
t a rget fun di n g 1 00M M + U S D
Q4 2017
10% of total supply
Q1 2018
10% of total supply
2019+
40% of total supply
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BST token details Ro l e of To ke n : u t il it y, a cces s To ke n Tot a l S up p ly : 1 0 0 , 0 0 0 , 0 0 0 B ST Sy m b o l : B ST B l o c kc h a in : Et h ereu m To ke n St a n da rd: E R C 2 0
BST token distribution chart Th e tot a l a mo unt of B ST to ke n s t h at c a n eve r b e mi nte d i s 1 00M M . 1 0% of t h e tot a l B ST to ke n sup p ly w i l l b e mi nte d a n d di st r i b ute d to p re sa l e p a r t i c i p a nt s. Te a m & Pa r t n e r s B ST to ke n s w i l l b e mi nte d a cco rdi n g to o ur 4 ye a r s ve st i n g p o l i cy w i t h 1 2 mo nt h c l i ffs. S e r i e s A B ST to ke n s w i l l b e mi nte d dur i n g t h e S e r i e s A to ke n di st r i b ut i o n eve nt p l a n n e d fo r Q1 2 01 8 B ST to ke n s re se r ve d fo r Fut ure S e r i e s ( B , C , D‌) w i l l b e mi nte d at t i me of to ke n di st r i b ut i o n eve nt s. B o unt y rewa rds w i l l b e mi nte d fro m t h e 1 0% p o o l a n d di st r i b ute d to p a r t i c i p a nt s of o ur b o unt y c a mp a i gn s. B o unt y c a mp a i gn s w i l l b e ava i l a b l e at S e r i e s A a n d Fut ure S e r i e s ( B , C , D‌) to ke n di st r i b ut i o n eve nt s.di st r i b ut i o n eve nt s.
100,000,000 BST
29
Presale use of funds O ur p re sa l e i s set to p ro c ure e n o ugh fun di n g fo r B l o c ksq ua re to co nt i n ue deve l o p me nt i n p a r t n e r sh i p w i t h Me di us, I n c . S o fa r we h ave b e e n b o ot st ra p p i n g t h e deve l o p me nt of B l o c ksq ua re fro m p ro je c t i de at i o n , ma r ket re se a rc h , l e ga l re se a rc h , te c h n i c a l re se a rc h , mv p deve l o p me nt , p ro duc t i de nt i fi c at i o n , ma r ket p l a ce o r i e nt at i o n , de mo gra p h i c t a rget i n g, te a m c re at i o n , co mmun i t y grow t h etc . We a re n ow re a dy fo r t h e n ex t ste p to co nt i n ue o ur wo r k a n d co mmi t eve n fur t h e r i n ma ki n g re a l e st ate si mp l e , se c ure and online. De p e n di n g o n t h e a mo unt ra i se d, we i nte n d to use ~ 44% of t h e fun ds fo r p ro duc t deve l o p me nt ; a b o ut ~ 2 6 % fo r b usi n e ss deve l o p me nt , l e ga l a n d o p e rat i o n s; a n d ~ 30% fo r co mmun i t y grow t h , co mmun i c at i o n s a n d ma r ket i n g i n p ro sp e c t of o ur se r i e s A c rowdsa l e p l a n n e d fo r Q1 2 01 8 . Fun ds w i l l b e sto re d se c ure ly i n a mul t i - si g wa l l et h e l d by t h e te a m co un c i l .
Business Development 26%
Community Growth 30%
1,000,000 USD
Product Development 44%
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Presale pricing T h e p re s ale is s et to di s tr i b ute 10,000,000 BST toke n s to e arly co nt r i b u to r s - v is io na r ies that see t h e h uge potent ial un lockin g l i q u i d i t y i n CRE offer s . T he illiquidit y discount of re al est ate is e s t i mate d to b e 1 0 -3 0 %. CRE token izat ion an d f rict ion le ss t radin g are s et to u nlo c k thi s va lu e an d ope n t h e door to a n ew market wo r t h ove r US D 5 tr illi o n. T h e b as e p r ice i n the p res a l e is set to 0. 1 USD for 1 BST toke n , w i t h s p e c ia l offer s res er ved for larger cont ributors, w h e re 1 slot i s re s e r ved fo r a s i ngle co ntribut ion of 300,000 USD, 2 slot s for co nt r i b u to r s of 1 0 0 , 0 0 0 US D, 3 slot s for cont ributors of 30,000 U SD. P l e a s e note that the numbe r of slot s may vary de pen din g o n t h e i nteres t to p a r ti c ipate w it h larger or smalle r st akes. For examp l e , i f m o re “reta i l� co nt ributors raise inte rest , t h e n umber of s l ot s for lower co ntr i b u ti on leve ls in cre ase s. Th e presale w ill c l o s e w h en a ll 1 0 , 0 0 0 , 0 0 0 B ST toke n s are dist ributed.
presale 10,000,000 BST base price 1 BST = 0.1 USD
BST token lockdown P l e as e n ote the di s tr i b u ted BST token s w ill n ot be available for t rad i n g at a ny exc ha ng e before t h e en d of our se rie s A roun d p l an n e d fo r Q1 20 1 8 . Th e lockdow n is set to protect ea rly cont r i b u to rs, as t h e n u m ber of token holder a ccounts is not ex p e c te d to be l arge at th i s sta ge.
30,000 USD
100,000 USD
300,000 USD
1 BST = 0.09 USD
1 BST = 0.08 USD
1 BST = 0.07 USD
3 contributor slots available
2 contributor slots available
1 contributor slot available
FOR PRESALE INQUIRIES FUTURE@BLOCKSQUARE.IO
31
roadmap
Q2-Q3 2016
Q3 2016
De n i s b e gi n s re se a rc h i n g b l o c kc h a i n a n d l o o ki n g fo r o p p o r t un i t i e s i n h i s a re a of ex p e r t i se : re a l e st ate .
Me di us I n c sh ows i nte re st i n b l o c kc h a i n te c h n o l o gy a n d st a r t s a n R&D p ro gra m. Medius Inc is a software development company specialized in IT projects based on open source Java technology
Q3 2017
Q2 2017
Q1 2017
Q1 2017
P ro pTo ken co ntra c t d eve l o pm .
Dr. Pete r Merc join s t h e Blocksquare team as legal advisor
De n i s a n d Vi kto r (cofo un de r @ Me di us I n c ) jo i n fo rce s to deve l o p a co n ce pt fo r C RE to ke n i z at i o n .
b l o c ksq ua re .i o do ma i n re gi st rat i o n
We b s i te des i g n b eg i ns . B l o c k s q u a re b ra nd i d e nt i t y.
Peter is cofounder of Lemur Legal. To learn more please visit www.lemurlegal.com
Viktor is cofounder and COO at Medius Inc, leading a team of 20+ developers. To learn more please visit www.medius.si
Q3 2017
Q3 2017
Q4 2017
Q4 2017
Ju re Pozu n j o i ns the B l o c k s q u a re tea m a s m ar ket ing s trateg y lea d
A n ee d to in duce t rust result s in developme nt of t h e Proof of Tit le protocol.
De a l w i t h l o c a l re a l e st ate deve l o p e r fo r p i l ot p ro je c t .
F i r st co nfe re n ce a p p e a ra n ce s ( U S , Aust r i a , C ro at i a , S l ove n i a ) .
N i n a Tanhofer j o i ns the B l o c k s q u a re tea m a s s o c i al media a nd PR lea d
Please refer our Proof of Title technical paper to gain a more indpeth overview.
Dev te a m st a r t s wo r ki n g towa rds o ur fi r st re a l e st ate to ke n i z at i o n .
Check our blog at medium.com/blocksquare
Q3-Q4 2018
Q1 2018
Q4 2017
Q4 2017
B l o c k s q u a re p latfo r m A l p h a re lea s e a nd te s t i n g .
Serie s A toke n sale to dist ribute 10MM BST toke n s in ret urn for 2-5M USD to f in an ce f urt h e r deve lopme nt .
Pre sa l e ro un d fo r se e d st a ge fun di n g set to di st r i b ute 1 0M M B ST to ke n s to e a r ly st a ge co nt r i b uto r s.
De n i s b r i n gs I B RE A to S l ove n i a a n d set s to o rga n i se t h e fi r st me et up i n Nove mb e r EOM .
Q1-Q2 2019 B l o c k s q u a re p u b li c B eta re l e as e
Pilot Alph a on Et h ereum test n et
The Internationa Blockchain Real Estate Association (IBREA) is a world wide non-profit organisation established in 2013.
32
We a re a te a m of de di c ate d p rofe ssi o n a l s, e nt re p re n e ur s, p r i vate re a l e st ate i nve sto r s, di gi t a l c ur re n cy e nt h usi a st s l eva ra gi n g b l o c kc h a i n te c h n o l o gy to ma ke re a l e st ate h a ssl e fre e a n d ava i l a b l e to eve r yo n e , eve r yw h e re .
founders
O ur te a m i s dyn a mi c , di st r i b ute d a n d a lways o n t h e l o o k fo r q ua l i t y i n di v i dua l s t h at c a n b r i n g va l ue to t h e te a m a n d h e l p us o n o ur mi ssi o n . If yo u b e l i eve yo u c a n co nt r i b ute p l e a se fe e l fre e to co nt a c t us. B l o c ksq ua re i s b e i n g deve l o p e d by Me di us I n c , a soft wa re deve l o p me nt co mp a ny sp e c i a l i ze d i n I T p ro je c t s b a se d o n o p e n so urce Java te c h n o l o gy.
Denis Petrovcic MSc in Arc hitec tura l Engineer i ng • co- found e r • C EO I con side r myself to be a forwa rd t h i n ki n g, o p e n mi n de d p e r so n w i t h a n e nt re p re n e ur i a l sp i r i t an d passion for t h e un kn own . I b e l i eve t h e p at h to re a c h o ur go a l s w i l l a lways exce e d t h e go a l it self, makin g our journ ey just a s i mp o r t a nt a s t h e de st i n at i o n we wa nt to re a c h . To day, w i t h t h e experie n ce gain e d by co-foun d i n g a n d ma n a gi n g a re st a ura nt , fa i l i n g a n o n l i n e ma r ket i n g st a r tup, successf ully laun ch in g a we b - b a se d e n e rgy ce r t i fi c at i o n se r v i ce , l e a di n g & de si gn i n g a proposal project for t h e world’s h i gh e st i n do o r ski sl o p e a n d succe ssful ly i nve st i n g- i n , set t i n gup an d man agin g a st udent acco mmo dat i o n b usi n e ss, I fo c us o n b ui l di n g a fut ure w h e re re a l e st ate invest ment s are ope n to a nyo n e .
Viktor Brajak MSc in Computer Sc ience • co - found e r • CTO C o-ow n e r an d COO at Me dius I n c - a Java M i ddl ewa re a n d A p p l i c at i o n I nte grat i o n soft wa re e n gin ee rin g company specialize d i n deve l o p me nt , de si gn , i mp l e me nt at i o n a n d i nte grat i o n of t h e most complex e nte rprise IT so l ut i o n s. I a m sp e c i a l i ze d i n deve l o p me nt , de si gn , i mp l e me nt at i o n an d inte grat ion of informat ion syste ms. I se e b l o c kc h a i n te c h n o l o gy a s a n un de n i a b ly i n ge n i o us invent ion t h at is set to ch an ge t h e way we use t h e i nte r n et a n d my te a m at Me di us i s h e re to h e lp deve lop t h is f ut ure to come .
Medius Inc Esta bl ished 2 002 • Ful l Sta c k D eve l op me nt Te am • 20+ E x p e r t s • P rove n Track Re cord Me dius In c is a sof t ware deve lop me nt co mp a ny sp e c i a l i ze d i n I T p ro je c t s b a se d o n o p e n so urce Java te ch n ology. Our focus is exc l usi ve ly o n Agi l e S oft wa re En gi n e e r i n g: De si gn , Deve l o p me nt , Test in g, QA, De ployment an d Ma i nte n a n ce of c usto m soft wa re syste ms, b a se d o n JE E te c h n o l o gy. All our proje ct s use con cept s of c usto m deve l o p e d b usi n e ss p ro ce dure s a n d p ro ce ss mo de l s. By usin g our deve lopme nt tool s we c a n e a si ly c re ate a n d p ub l i sh e l e c t ro n i c fo r ms i n re a l- t i me , acce ss re late d dat a stored in ex te r n a l offi c i a l re gi st r i e s, di gi t a l ly si gn do c ume nt s, c usto mi ze busin e ss proce ss orch e st rat ion a n d fl ow, c l a ssi fy a n d ret r i eve do c ume nt s, defi n e co mp l ex dat a mode ls an d dict ion arie s, etc.
33
We a re a te a m of de di c ate d p rofe ssi o n a l s, e nt re p re n e ur s, p r i vate re a l e st ate i nve sto r s, di gi t a l c ur re n cy e nt h usi a st s l eva ra gi n g b l o c kc h a i n te c h n o l o gy to ma ke re a l e st ate h a ssl e fre e a n d ava i l a b l e to eve r yo n e , eve r yw h e re .
team members
O ur te a m i s dyn a mi c , di st r i b ute d a n d a lways o n t h e l o o k fo r q ua l i t y i n di v i dua l s t h at c a n b r i n g va l ue to t h e te a m a n d h e l p us o n o ur mi ssi o n . If yo u b e l i eve yo u c a n co nt r i b ute p l e a se fe e l fre e to co nt a c t us. B l o c ksq ua re i s b e i n g deve l o p e d by Me di us I n c , a soft wa re deve l o p me nt co mp a ny sp e c i a l i ze d i n I T p ro je c t s b a se d o n o p e n so urce Java te c h n o l o gy.
Peter Merc Doc tor of Laws (Ph.D.) • l ega l l e ad Lemur Le gal C ofoun de r, Blockc h a i n Th i n k Ta n k Le a d C o o rdi n ato r, Di gi t a l L aw ye r, S h a r i n g Eco n o my & Blockch ain Ent h usiast . Most p e o p l e se e me a s a “p e r p et uum mo b i l e” p e r so n . B usi n e ss w i se I h ave always fe lt passion ate a b o ut l aw, fi n a n ce & e nt re p re n e ur sh i p . Wh i l e wo r ki n g I a m ke e n to learn n ew t h in gs, my decisio n - ma ki n g st yl e i s i nfo r mat i o n dr i ve n a n d I a lways st ay fo c use d. Me anw h ile in my private life I p ut a l ot of effo r t i n fo l l ow i n g “c a r p e di e m” p r i n c i p l e s o n a da i ly basis. On e of my favourite quote s i s by Osc a r Wi l de : “We a re a l l i n t h e gut te r, b ut so me of us are lookin g at t h e st ars.”
Jure Pozun BA Soc iol ogy, Soc ia l Informat i cs • st rate g y & mar ket i ng l e ad Wit h over 12 ye ars h an ds-on ex p e r i e n ce i n a dve r t i si n g a n d mo b i l e ga mi n g i n dust r i e s, I ’ ve gain ed exten sive kn ow-h ow in b ra n di n g a n d co n ce pt ua l i si n g co mmun i c at i o n fo r b ot h t ra di t i o n a l an d digit al me dia lan dscapes. Hav i n g wo r ke d c l o se ly w i t h l e a di n g gl o b a l co mp a n i e s a n d st a r t ups, my cre at ive an d advisory se r v i ce s e a r n e d a p rove n t ra c k re co rd of re sul t s, fe e db a c k a n d recogn it ion . I worke d as a cre at i ve b ra n d st rate gi st fo r fo r Out fi t 7 a n d A p p l e . As a n a gi l e , respon sive an d result orie nte d c re at i ve w i t h a c l e a r un de r st a n di n g of b ra n ds, b usi n e sse s a n d t ren ds, I h ave t h e abilit y to conn e c t t h e dot s a n d te a ms.
Nina Tanhofer BA Journa l ism • PR & commun i cat i ons l e ad From journ alist to Editor in Ch i ef, b ra n d ma n a ge r, eve nt ma n a ge r a n d i nte r n at i o n a l w i n dsur f sch ool Foun der & C EO is a col o r ful p at h w h e re o n e e a r n s va l ua b l e ex p e r i e n ce a n d co nfi de n ce to in it iate, man age an d exe cute go o d i de a s fo r go o d b ra n ds a n d c a use s. Th e eve r- c h a n gi n g world of social me dia en cap sul ate s my ex p e r t i se i n t h e fi e l ds of co mmun i c at i o n st rate gy, con cept ualizat ion an d content ma n a ge me nt , ra i si n g t h e b a r w i t h eve r y n ew o p p o r t un i t y to in n ovate, lead an d e n act prof ic i e nt co mmun i c at i o n p ra c t i se . B e si de s t h at , I l i ke go i n g p l a ce s. O r just wan der aroun d - t h rough ci t i e s, b o o ks, ma ga z i n e s a n d p e o p l e s mi n ds.
34
We a re a te a m of de di c ate d p rofe ssi o n a l s, e nt re p re n e ur s, p r i vate re a l e st ate i nve sto r s, di gi t a l c ur re n cy e nt h usi a st s l eva ra gi n g b l o c kc h a i n te c h n o l o gy to ma ke re a l e st ate h a ssl e fre e a n d ava i l a b l e to eve r yo n e , eve r yw h e re .
team members
O ur te a m i s dyn a mi c , di st r i b ute d a n d a lways o n t h e l o o k fo r q ua l i t y i n di v i dua l s t h at c a n b r i n g va l ue to t h e te a m a n d h e l p us o n o ur mi ssi o n . If yo u b e l i eve yo u c a n co nt r i b ute p l e a se fe e l fre e to co nt a c t us. B l o c ksq ua re i s b e i n g deve l o p e d by Me di us I n c , a soft wa re deve l o p me nt co mp a ny sp e c i a l i ze d i n I T p ro je c t s b a se d o n o p e n so urce Java te c h n o l o gy.
Sebastjan Pirih BA Communic ation • Digita l Mar ket i ng Manag e r St ron g focus on all forms of di gi t a l co mmun i c at i o n , st rate gi c mi n dset , p a ssi o n fo r c re at i v i t y an d t h e force to always de live r mo re t h a n i t i s ex p e c te d de sc r i b e me b e st . Wi t h mo re t h a n 15 years of experie n ce in commun i c at i o n s a n d a dve r t i si n g I h ave h a d t h e o p p o r t un i t y to wo r k w it h n ume rous bran ds on mult i p l e deve l o p me nt l eve l s: st rate gy, a dve r t i si n g, a n a lyt i c s, di gi t a l PR, social me dia an d content ma r ket i n g, p rov i di n g me w i t h t h e i n si ght to se e w h at wo r ks a n d ways to f ix wh at doesn’ t . My ex p e r i e n ce l e a ds me to b e l i eve t h at fa mo us st ate me nt of Ma r sh a l l McLuh an de se rve s an upgrade: Me di um i s mo re t h a n just t h e me ssa ge .
Jure Zibelnik BA Economic s • Projec t Ma na g e r I h ave over 10 years of mean i n gful ex p e r i e n ce i n b usi n e ss deve l o p me nt , p ro duc t a n d b ra n d man agement . I am passion ate a b o ut ex p l o r i n g n ew b usi n e ss p o ssi b i l i t i e s a n d deve l o p n ew project s f rom t h e groun d up. On e of t h e ve r y i mp o r t a nt t h i n gs fo r me i s to e st a b l i sh a we l l con n e cted an d commit te d team w h i c h w i l l de l i ve r o ut st a n di n g re sul t s. Th i s ki n d of at mo sp h e re w ill also ref lect to our custome r s, p a r t n e r s a n d t h e ma r ket . I se e blockch ain tech n ology as t h e i n ev i t a b l e fut ure w h i c h w i l l t a ke p a r t a n d sh a p e a l l ki n ds of dif ferent in dust rie s.
New Team Members Apply by sending your resume to fut ure @ b l ocksq uare .i o
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Our team is dyn amic, dist ribute d a n d a lways o n t h e l o o k fo r q ua l i t y i n di v i dua l s t h at c a n b r i n g value to t h e team an d h elp us o n o ur mi ssi o n . If yo u b e l i eve yo u c a n co nt r i b ute p l e a se fe e l fre e to cont act us.
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“Founded in 2002, Medius is today one of the most recognized brands in the region offering custom development solutions based on open source Java technology.”
FOUNDING PRTNER: Medius inc Me d i u s , Java Mi ddlewa re an d Applicat ion Inte grat ion In c. , is a s of t ware engi neer ing co mpany specialize d in deve lopme nt , d e s i g n , i mp lem entatio n a nd inte grat ion of t h e most complex e nte r p r i s e IT s o lu ti o ns . Me d i u s I n c s ta r ted blo c kc ha in tech n ology R&D act ivit ie s wit h it s te am of 2 0+ develo p er s i n late 2016 an d today of fers con sult in g an d d eve l o p ment s er v ices in the f ield aimin g to become a recogn ize d l e ad e r co mb i ni ng o n- c ha i n an d of f-ch ain e nte rprise solut ion s to i t s h i g h p rofi le c u s to m er ba s e.
- Viktor Brajak, COO, Medius Inc He ad q uar te r s: Te h n o l o ski p a r k 2 1 , 1 000 L jub l ja n a , S l ove n i a Emp l oye e s: 2 0 A nnual S al e s: Ove r 1 .2 M M E U R VAT I D : S I 5 57 7 35 6 7 Re g i st rat i on N umb e r : 1 6 8 5 32 5
United Nations Public Service Award The United Nations Public Service Award is the most prestigious intern at ion al recogn it ion of exce l l e n ce i n p ub l i c se r v i ce . It rewards t h e cre at ive ach ieve me nt s a n d co nt r i b ut i o n s of public se rvice in st it ut ion s t h at l e a d to a mo re effe c t i ve a n d respon sive public admin ist rat io n i n co unt r i e s wo r l dw i de . I n 2013, Sloven ia h as won a gold e n awa rd t h a n ks to a p ro je c t “ Th e Tray” w h ich is t h e most i mp o r t a nt p a r t of t h e w h o l e solut ion , an d was de sign ed, deve l o p e d a n d i mp l e me nte d by Me dius.
e.com CERT In 2010, MEDIUS h as be e n awarde d I S O 9001 /2 008 ce r t i fi c ate , for “ Deve lopme nt , Implement at i o n , I nte grat i o n , a n d S up p o r t of IT Systems, usin g Open S o urce Java Te c h n o l o gy”. I t clearly demon st rate s compa ny’s v i si o n a n d de di c at i o n to developme nt st an dards, co n st a nt ly st r i v i n g to de l i ve r ef fect ive busin e ss solut ion s t h at ge n e rate c usto me r va l ue .
EuroCloud Award 2016 Me dius’ C loudSE solut ion awarde d a s t h e b e st Euro p e a n c l o ud se rvice in t h e cate gory “ Be st C l o ud S e r v i ce s p rov i de d by St art-Up C SPs”. Nomin e e s an d t h e w i n n e r s a re dete r mi n e d by t h e pan e uropean jury f rom part i c i p at i n g co unt r i e s co mp o se d of in depen de nt expert s f rom di ffe re nt c l o ud ex p e r t i se a n d dist in ct ion . Over 30 Cloud sol ut i o n p rov i de r s fro m a l l ove r Europe h ave competed in t h e 2 - t i e re d co mp et i t i o n - n at i o n a l an d Europe an .
TM Forum Excellence Awards - Finalist Te l e c o m m u n i c a t i o n Ma n a ge me nt Fo r um E xce l l e n ce Awa rd is awa rde d to the co mmun i c at i o n s se r v i ce p rov i de r, de mo n st rat i n g t h e mo st i n n ovat i ve a n d effe c t i ve use of TM Fo r um Fra mewo r k, to de l i ve r t a n gi b l e co st re duc t i o n , effi c i e n cy i mp rove me nt , a n d o p e rat i o n a l a gi l i t y. I n 2 01 0, Me di us a n d Te l e ko m S l ove n i a h ave been n o mi n ate d fo r t h e TM Fo r um E xce l l e n ce Awa rd fo r p ro je c t “Auto mato r - N G O S S Orc h e st ra fo r Ful fi l l me nt Auto mat i o n”.
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