How CitaDAO Creates Sustainable Value for Real Estate on the Blockchain

Source: CitaDAO

As early as 1960, then-President Dwight D. Eisenhower signed Public Law 86-779, which allowed the public to invest in large-scale, diversified income-generating real estate portfolios. This law enabled the establishment of Real Estate Investment Trusts (REITs). Since then, REITs have gradually evolved from a branch of traditional mortgage companies into a global business operating in over 39 countries with a total market of approximately $1.7 trillion. Today, most REITs do not just own the real estate they invest in; they also generate stable income streams through the operation of these properties. Some of your favorite outdoor shopping centers, mixed-use spaces, and other gathering places may be owned and operated by these REITs.

These REITs have been around for some time and have a good track record of value. They profit by offering investors products with the following characteristics:

• Low Entry Barrier --- The minimum investment amount for a REIT is generally far lower than the cost of purchasing an entire property, and REIT investors can invest in properties across different jurisdictions.
• Strong Liquidity --- Unlike traditional real estate, REIT shares can be freely traded on equity markets.
• High Transparency --- Legal requirements ensure that REITs disclose their holdings accurately.
• Scalability --- Companies operating REITs can use proven methods to acquire new assets and convert them into positive cash flow investments.

However, at the same time, since the investment in REITs was written into law in 1960, their model has not changed. During the same period, we have experienced the chip revolution, the personal computer revolution, the internet revolution, the wireless and smartphone revolution, and now the ongoing artificial intelligence revolution. Isn't it time for the 21st-century REITs to undergo some changes?

At CitaDAO, we leverage decentralized finance (DeFi) based on blockchain technology to enable simpler, more transparent, scalable, and borderless real estate investment. With CitaDAO, real estate investors can acquire partial ownership and title of properties listed for sale on the CitaDAO platform by purchasing Ethereum-based ERC20 tokens. Once investors obtain a sufficient amount of ERC20 tokens, they will have the right to directly purchase the asset. The legal ownership of these assets will be transferred to investors in the form of non-fungible tokens (NFTs). Additionally, ERC20 tokens can be traded with other valuable cryptocurrencies through automated market makers (AMMs) in DeFi, or staked in liquidity pools to earn CitaDAO tokens as rewards. These earned CitaDAO tokens can, in turn, be used to vote on the governance of the platform, such as deciding how to spend or allocate the platform's revenue. In cases where CitaDAO tokens are used by token holders to vote on how to allocate platform revenue, CitaDAO tokens will also grant holders a share corresponding to that allocation.

In the form of Introducing Real Estate OnChain (IRO), asset owners can issue their real estate assets on the CitaDAO platform and receive issuance proceeds in their ERC20 wallets. These asset holders can flexibly offer partial equity in real estate assets according to personal preferences, while the platform generates equivalent ERC20 tokens based on the corresponding equity size.

By tokenizing assets with a good track record of value and real cash flow, we also provide a tool in the DeFi ecosystem that balances low risk and high returns. Due to new market participants, rapid imitation of successful strategies, the impact of margin trading, and hesitation towards higher-risk liquidity pool growth, multiple forces are driving the unsustainable ultra-high yields of DeFi to gradually decline. As more value gets locked in these factors, DeFi yields are expected to further decrease until they reach the mean. To continue developing and growing, DeFi needs value sources with the following characteristics:

• Income Growth --- Assets must be able to generate positive cash flow.
• Sustainability --- Assets must have a good historical record of value sources.
• On-Chain --- Ownership and legal rights of the assets must be clearly mapped from the real world to tokenized assets on the blockchain (ideally, assets can also profit from being transferred on-chain).

Real estate has always met the first two criteria. With the emergence of blockchain and DeFi, now is the time to transfer real estate and legal ownership onto the chain—this is precisely what CitaDAO is doing.

The CitaDAO platform combines the following advantages:

• Borderless --- Anyone from anywhere can invest in partial real estate equity issued through ERC20, while anyone in the 54 Commonwealth member countries can issue their real estate assets on the platform.
• Strong Liquidity --- Real estate assets issued on the CitaDAO platform can be freely traded with other ERC20 tokens through automated market makers.
• High Transparency --- All management decisions made by the CitaDAO organization will be based on votes from staked CitaDAO tokens.
• Scalability --- Our website makes the process of issuing new assets and allocating new ERC20 shares to buyers easier, thus enabling an unlimited supply of real estate investment assets.
• Composability --- By using blockchain-native assets to carry asset tokens, CitaDAO can serve as the foundation for a multitude of innovative DeFi primitives, such as mortgages, futures, indices, and real estate-backed stablecoins.

For a long time, real estate has been one of the most important investment assets in the world. Currently, CitaDAO is leveraging the value of real estate to reshape it through the power of DeFi. In the world of cryptocurrency tokens, liquidity pools, and decentralized networks, the emergence of CitaDAO aligns with the trend of real estate investment development.