NFT Titles
Last updated
Last updated
When Gypsy purchases new homes it mints an NFT with the Home's data and pictures of the home. This is done by minting a new item to an NFT collection which then represents every home Gypsy owns.
The NFT titles contract has additional functionality on top of the ER721 NFT standard. The contract is able to set the rent price of the property, pay rent to the owner of the individual who owns the nft, set appraisal prices of the home, and set if a property is currently occupied and when that occupancy ends. These functions allow the REIT contract to calculate the accounting of its operation such as NAV, expected monthly rent, and occupancy rate. The NFT title contract also acts as a backend to booking Gypsy homes.
Gypsy will create an NFT collection and have it viewable on Opensea. This collection will display all the homes and allow anyone to make an offer to purchase the home. If Gypsy sees a buyer it wants to sell to, and that buyer has their wallet linked to a Gypsy account then Gypsy will allow for the NFT to be sold to the buyer. When Gypsy sells a property through opensea the buyer could either 1) keep their property managed by Gypsy and instead earn the rental income entirely and own the rights to the property. 2) The user could request to have the LLC that owns the property transferred over to them. If this happens, Gypsy burns the equivalent GPSY and burns the NFT title.
When Gypsy reaches its funding goal it will take out USDG from the REIT contract and convert it to fiat to purchase a property. This will increase the backing ratio of real estate and increase the monthly rental income of the protocol.
When Gypsy decides to sell a property it has two options. It can sell on-chain or off-chain. Gypsy aims to always sell homes on-chain to provide maximum transparency to all investors but may need to occasionally sell properties off-chain. If this happens, Gypsy will deposit the proceeds into USDG and transfer it to the Treasury where it can be sent as dividends to LGPSY holders.
If Gypsy sells the home on-chain the USDG will automatically be deposited to the Treasury and sent to all LGPSY holders.
