3. Property Tokens — Real Assets, Real Yield

Each property on the platform issues its own ERC-20 token, integrated with an ERC-4626 vault that manages yield accounting and distribution for that specific asset. This structure enables transparent, on-chain exposure to individual real estate properties while remaining fully composable within DeFi markets.

Asset Structure

Property tokens are designed to represent economic exposure to a single property:

• Backed by legally enforceable rights to property-related revenues

• Freely tradable via AMM-based liquidity pools

• Integrated with ERC-4626 vaults for standardized yield distribution

Sources of Value Accrual

Each property token accrues value from the economic performance of its underlying asset, including:

• Net rental income

• Capital appreciation

• Profits from property sales

• Gains resulting from bank-financed leverage (where applicable)

Token Holder Rights

Holding a property token grants a contractual right to a proportional share of:

• Net rental income generated by the property

• Capital appreciation of the underlying asset

• Net proceeds from a property sale

• Leverage-related gains, if external financing is used

Returns are distributed automatically through the associated ERC-4626 vault. The issuing legal entity commits to this structure through binding legal agreements, ensuring that on-chain distributions reflect real-world cash flows.

Summary

Property tokens provide direct, asset-specific exposure to real estate performance, combining legally backed rights with automated, transparent yield distribution.