Tokenizator

Econody enables fractional investing and trading in previously inaccessible, illiquid assets—such as real estate, commodities, precious metals etc. —through asset tokenization.

Understanding Econody Tokenization Service

1. Asset Selection and Onboarding: Issuers (e.g., real estate owners or businesses) submit assets via a streamlined platform, providing documentation for verification.

2. Legal Structuring: Assets are wrapped in compliant legal entities (e.g., SPVs) to ensure ownership rights. In the USA, this aligns with SEC regulations like Reg D for private placements or Reg A for broader offerings.

3. Tokenization Process: Physical asset is digitized into blockchain tokens, with each asset fractionalized into (e.g. 100,000) standardized tokens. This process drastically lowers entry barriers, enabling fractional investment and trading.

4. Marketplace Listing: Tokenized assets are listed on the digital Econody RWA Marketplace for primary and secondary trading.

5. Automated Royalties & Revenue Distribution: Rental income, royalties, businesses income and other profits are automatically distributed among token holders.

6. De-Tokenization (Token Redemption) Feature: If needed, the tokenized asset could be de-tokenized. Econody offers an integrated process to convert tokenized assets back into traditional physical ownership.

Econody ensures investors clearly and automatically receive their share of income from tokenized assets—such as rental revenue, royalties, or fund profits etc. — through blockchain-powered smart contracts.

Asset Valuation & Capital Stack

When investing through Econody, investors must clearly understand two distinct yet complementary ways properties (or other real-world assets) are valued:

Asset Valuation

Traditional Asset Valuation (Off-Chain)

This is the conventional valuation performed by certified professional appraisers (for example, RICS-certified experts). They evaluate the physical asset periodically (e.g., yearly) based on:

• Actual market conditions

• Recent comparable sales

• Location and quality of the asset

• Potential rental income and cash flows

Dynamic Token Valuation (On-Chain)

This is the real-time market value determined by investor supply and demand for tokens representing the asset. Token price can fluctuate independently from traditional valuations because it’s influenced directly by marketplace trading activity and investor sentiment.

• Real-time price discovery: Investor trades instantly reflect current market perception of the asset’s value;

• Transparency: Token values are transparently stored on the blockchain, providing clear visibility at all times;

• Prevents Manipulation: Real-time, transparent market-based pricing makes valuation harder to manipulate compared to private or traditional valuations alone.

Econody combines traditional valuations (off-chain) and dynamic token valuations (on-chain) to deliver a realistic, complete, and transparent valuation model.

Buyback (De-Tokenization) Protocol

De-tokenization is the process of converting digital asset tokens back into traditional ownership or fiat currency. This typically happens when the issuer (property owner or asset manager) decides to repurchase the digital tokens, returning full ownership to themselves or another party.

Buy-Back Threshold (Investor Agreement)

Before tokens can be bought back (de-tokenized), a minimum percentage (threshold) of existing token holders must agree.This ensures fairness by preventing forced or unfair buybacks without investor consensus.Investors vote transparently through Econody’s blockchain-based system, providing collective decision-making power.

Minimum Buy-Back Price Guarantee

The issuer's minimum buyback price always equals or exceeds the original primary token offering price, protecting investor value. Investors have a clear timeframe to accept or reject buyback offers.

Buy-Back Events

De-tokenization is required in specific situations, clearly outlined from the start:

• Asset Sale: If the underlying asset is sold, token holders must be compensated first.

• Refinancing or Major Changes: Significant changes like refinancing or restructuring trigger mandatory token repurchase.

• Asset Transfer or Ownership Change: Ownership changes require prior token redemption to protect investors’ rights and maintain asset transparency.

Revenue Distribution

• Automatic Smart-Contract Distribution: Payments are distributed automatically, proportionally, and transparently to all token holders using secure blockchain smart contracts, eliminating manual intervention or delays.

• Flexible Payment Intervals: Revenue distribution schedules (monthly, quarterly, annually) are clearly defined and customizable per asset. Investors always know precisely when payouts occur, enhancing transparency and reliability.

• Full Transparency & Security: Each distribution is permanently recorded on-chain, ensuring full auditability and eliminating manipulation risks. Investors can independently verify their earned income distributions at any time.