SecondaryDAO is transforming how investors engage with real estate by leveraging blockchain technology to tokenize properties and offer fractional ownership. Traditionally, investing in real estate required significant capital and navigating through intermediaries like agents and legal representatives. SecondaryDAO eliminates these barriers by creating a decentralized ecosystem where property ownership is accessible to everyone.
Through tokenization, properties are divided into digital tokens, with each token representing a share of ownership. For instance, a $200,000 property can be split into 200 tokens, each worth $1,000, making it easier for multiple investors to participate. On the SecondaryDAO platform, the minimum investment starts at just $50, allowing small-scale investors to become property owners and benefit from rental income and property appreciation.
Smart contracts, deployed on the Arbitrum blockchain, ensure trust, transparency, and data security. These contracts automate and enforce transactions, removing intermediaries and reducing costs, while enabling faster, more efficient property acquisitions and trades.
In addition to increased accessibility and affordability, tokenization enhances liquidity in the real estate market. Investors can trade property tokens on the SecondaryDAO marketplace after the Initial Property Selling (IPS) phase. The secondary market uses a centralized order book system where participants can place buy and sell limit orders based on fair market value, ensuring flexibility and transparency.
SecondaryDAO is reshaping real estate investment into an inclusive and efficient model, driving innovation through blockchain's inherent attributes of robustness, security, and immutability.