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By Joshua Freedman
• 17 articles

Getting Started with SecondaryDAO: A Step-by-Step Guide

Title: Getting Started with SecondaryDAO: A Step-by-Step Guide Introduction: Welcome to SecondaryDAO, the innovative platform that opens the doors to the world of fractionalized real estate investments. This comprehensive step-by-step guide is designed to assist users in navigating the process of starting their journey with SecondaryDAO, from the initial account setup to making their first investment in fractionalized real estate assets. Follow these detailed instructions to kickstart your investment journey on SecondaryDAO. Section 1: Creating Your SecondaryDAO Account 1. Begin by visiting the official SecondaryDAO website at SecondaryDAO.com. 2. Locate the "Sign Up" or "Create Account" option on the homepage and click to initiate the registration process. 3. Provide the necessary information, including your name, email address, and a secure password for your account. 4. Agree to the terms and conditions of SecondaryDAO and complete any additional verification steps required. 5. Congratulations! You have successfully created your SecondaryDAO account and are ready to explore the world of fractionalized real estate investments. Section 2: Navigating the Platform 1. Log in to your newly created SecondaryDAO account using your credentials. 2. Take a tour of the platform interface to familiarize yourself with the various sections and features available. 3. Explore the dashboard to view your account balance, investment opportunities, and other relevant information related to your account. Section 3: Investing in Fractionalized Real Estate 1. To start investing in fractionalized real estate assets, navigate to the "Marketplace section of the platform. 2. Browse through the available projects and select one that aligns with your investment preferences and goals. 3. Review the details of the selected project, including property information, investment terms, and the fractionalized token offering. 4. Enter the desired investment amount and proceed to confirm your investment. 5. Complete the transaction using the designated payment method or wallet integration provided by SecondaryDAO. Conclusion: By following this step-by-step guide, you have successfully initiated your journey with SecondaryDAO, from creating your account to investing in fractionalized real estate assets. As you continue your investment activities on the platform, remember to explore further opportunities and stay updated on new features and projects. Should you encounter any challenges or require assistance along the way, do not hesitate to reach out to the knowledgeable support team at SecondaryDAO for prompt assistance. Start your investment journey with SecondaryDAO today and seize the exciting opportunities that await in the world of fractionalized real estate.

Last updated on May 04, 2024

Understanding SecondaryDAO's Tokenomics: Explained

This article explains the tokenomics of SecondaryDAO, covering details about tokens, its purpose, and how they function within the ecosystem. Title: Understanding SecondaryDAO's Tokenomics: Explained Introduction SecondaryDAO is an innovative platform that specializes in tokenizing and fractionalizing companies that own properties. In this article, we will explore the unique tokenomics of SecondaryDAO and how it revolutionizes property investment. Each token represents ownership in a company that owns a specific property, with all rents and expenses flowing through that company and distributed to token holders. Tokenizing and Fractionalizing Companies SecondaryDAO's primary focus is on tokenizing and fractionalizing companies that own properties. In most cases, each company is associated with a single property, ensuring clear ownership and accountability. However, there may be cases where a company owns multiple properties, which might be specifically outlined. The Token Represents Ownership When an investor buys a token of a property on SecondaryDAO, they are effectively acquiring a token representing ownership in the company that holds the property. This ownership entitles them to a share of the property's benefits and returns. Read the operating agreement in the Document section for the listing! Property Operations through the Company All rents and expenses related to the property are handled by the company that issued the token. This setup ensures a streamlined process where the company manages day-to-day operations, including rent collection, property maintenance, and expense management. Token holders can rest assured that their investment is managed by professionals with expertise in property management. Distribution of Net Rents One of the significant advantages of owning tokens of a property through SecondaryDAO is the distribution of net rents. As the company receives rental income, expenses such as property taxes, insurance, and maintenance are deducted. The remaining net rents are then distributed proportionally amongst the token holders. Transparent and Accountable System SecondaryDAO's tokenomics brings transparency and accountability to property investment. Token holders can easily track the flow of funds within the company, ensuring that all rents and expenses are accurately recorded and distributed. This level of transparency builds trust among investors and fosters a strong sense of community within the SecondaryDAO ecosystem. Conclusion SecondaryDAO's pioneering tokenomics transforms property investment by tokenizing and fractionalizing companies that own properties. By buying tokens associated with specific properties, investors gain ownership in the company and the ability to receive net rents. This unique approach to property investment provides transparency, accountability, and attractive returns for token holders.

Last updated on May 04, 2024

Setting Up Metamask Wallet for SecondaryDAO Transactions on Arbitrum

SecondaryDAO offers a seamless transaction experience through Arbitrum, a layer 2 scaling solution built on Ethereum. To participate in SecondaryDAO's ecosystem on Arbitrum, setting up a Metamask wallet is crucial. This article will guide you through the process of setting up a Metamask wallet on Arbitrum, providing step-by-step instructions and essential tips to ensure a smooth experience. Step-by-Step Guide 1. Install the Metamask Extension: Visit the official Metamask website (https://metamask.io/) and download the extension compatible with your web browser. Follow the installation instructions to add the extension to your browser. 2. Create a New Wallet: Click on the Metamask icon in the top right corner of your browser to open the extension. Select "Create a Wallet" to initiate the wallet creation process. 3. Set a Strong Password: Choose a secure password for your wallet. Ensure it includes a combination of alphanumeric characters and symbols to enhance security. 4. Save Your Secret Backup Phrase: After setting your password, Metamask will provide you with a secret backup phrase. This backup phrase is crucial for recovering your wallet if needed. Write it down on paper or store it securely offline. Never share it with anyone. 5. Confirm the Secret Backup Phrase: To ensure you have accurately noted the backup phrase, Metamask will ask you to confirm select words from the backup phrase in the correct order. 6. Connect to Arbitrum: Access the network selection dropdown in Metamask and choose "Custom RPC." Provide the Arbitrum network details, including the RPC URL and chain ID. Save the configuration. 7. Fund Your Wallet on Arbitrum: To perform transactions on SecondaryDAO's Arbitrum network, you need to have funds in your wallet. Transfer some Ether (ETH) to your Metamask wallet on the Arbitrum network. Important Tips - Backup Your Wallet Regularly: It is crucial to create backups of your wallet periodically to prevent the risk of permanent loss in case of device failure or loss. - Secure Your Password and Backup Phrase: Safeguard your password and backup phrase from unauthorized access. These are essential for accessing and recovering your wallet. Store them securely offline. - Stay Alert for Phishing Attempts: Exercise caution to avoid falling victim to phishing attempts. Verify that you are using the official Metamask website or extensions when entering your wallet information. Conclusion Setting up a Metamask wallet on Arbitrum is an essential step to facilitate seamless transactions on SecondaryDAO's platform. By following the provided step-by-step instructions and implementing the provided tips, you can ensure a secure and efficient transaction experience. Empower yourself with the benefits of SecondaryDAO on the Arbitrum network, using the convenience of the Metamask wallet.

Last updated on May 04, 2024

Buying Fractionalized Real Estate Tokens on SecondaryDAO: A Step-by-Step Guide on Arbitrum

Navigating the realm of fractionalized real estate tokens on SecondaryDAO can be both exciting and rewarding. This guide is designed to walk you through the process of purchasing these tokens on SecondaryDAO's platform, leveraging the power of Arbitrum for efficient transactions. Discover all the necessary steps and considerations to make informed investment decisions. Step-by-Step Guide 1. Accessing SecondaryDAO's Platform: Visit the SecondaryDAO platform on Arbitrum by going to the provided website link and ensure that you are connected to the Arbitrum network on your Metamask wallet. 2. Browsing Available Real Estate Tokens: Explore the list of fractionalized real estate tokens available for purchase on SecondaryDAO. Each token represents ownership in a property, offering a unique investment opportunity. 3. Selecting a Real Estate Token: Choose a specific real estate token that aligns with your investment goals and preferences. Consider factors such as location, potential returns, and risk profile before making a decision. 4. Initiating the Purchase: Once you have selected a real estate token to purchase, follow the on-screen instructions on SecondaryDAO's platform to initiate the transaction. Confirm the details of the purchase and ensure that you have sufficient funds in your Metamask wallet on the Arbitrum network. 5. Completing the Transaction: After confirming the purchase details, approve the transaction through your Metamask wallet. Wait for the transaction to be processed on the Arbitrum network. Once confirmed, you will officially own a fraction of the chosen real estate asset. Important Considerations - Diversification: Consider diversifying your investment portfolio by purchasing fractionalized real estate tokens across different properties to mitigate risk and enhance returns. - Due Diligence: Conduct thorough research on the properties associated with the real estate tokens you intend to purchase. Verify relevant information such as rental income, property value, and potential for appreciation. - Understanding Tokenomics: Familiarize yourself with the tokenomics of the real estate tokens you are purchasing. Understand how returns are calculated, fees are charged, and how governance decisions impact your investment. Conclusion By following this step-by-step guide and considering the essential factors outlined, you can confidently purchase fractionalized real estate tokens on SecondaryDAO's platform using Arbitrum. Embrace the world of decentralized finance and real estate investment with SecondaryDAO, leveraging the efficiency and security of the Arbitrum network. Meta Title: Meta Description: Keywords:

Last updated on May 04, 2024

Exploring SecondaryDAO's Governance Features

As the realm of real estate continues to evolve with the advent of blockchain technology, platforms like SecondaryDAO are at the forefront of integrating decentralized governance structures into their operations. SecondaryDAO, a pioneering tokenized and fractionalized real estate platform based in El Salvador, not only offers investment opportunities but also provides its token holders with robust governance features. These features empower participants to have a significant say in the platform's development and future direction. Here’s a closer look at the governance features of SecondaryDAO, including its mechanisms for voting, proposals, and decision-making processes. Voting Rights At the core of SecondaryDAO’s governance structure are the voting rights granted to token holders. Each token represents a stake in the platform, and with it, the right to vote on key decisions. Voting power is typically proportional to the number of tokens a member holds, emphasizing a democratic approach where the extent of one's investment corresponds to one's influence over decisions. Proposal Framework SecondaryDAO utilizes a structured proposal framework that allows token holders to submit their ideas and suggestions for the platform. Proposals can range from changes in operational tactics to strategic pivots in business focus. The process begins with a proposal submission that is then vetted for viability and relevance by a preliminary committee. Once a proposal passes this initial phase, it is put forward for a community-wide vote. Decision-Making Process The decision-making process at SecondaryDAO is designed to be transparent and inclusive. Once proposals are approved for voting, a designated voting period begins, during which token holders can cast their votes. This period is crucial as it ensures that all stakeholders have ample time to evaluate the proposals and make informed decisions. The outcome of the vote determines whether a proposal is accepted or rejected, with results publicly disclosed to maintain transparency. Implementation of Decisions Upon approval, proposals are not just conceptual but are set in motion through a systematic implementation phase. This phase involves the detailed planning and allocation of resources to bring the approved proposals to fruition. SecondaryDAO’s management team, alongside its community members, oversees this process, ensuring that the decisions made by the token holders are executed efficiently and effectively. Continuous Improvement and Feedback SecondaryDAO recognizes the importance of continuous improvement and regularly seeks feedback from its community to refine its governance processes. This iterative feedback loop helps in adjusting and optimizing the governance framework to better suit the needs of the token holders and the overall strategic goals of the platform. In conclusion, the governance features of SecondaryDAO showcase its commitment to maintaining a decentralized and participatory approach. By allowing token holders to actively participate in the decision-making processes, SecondaryDAO not only enhances investor confidence but also ensures that the platform evolves in a direction that is aligned with the interests of its community. This forward-thinking approach to governance in the blockchain space sets a precedent for other platforms seeking to democratize real estate investment and management.

Last updated on May 10, 2024

How to Bridge Tokens from Ethereum to Arbitrum for SecondaryDAO

In the expanding world of blockchain and decentralized finance, the ability to seamlessly interact across different blockchain networks is crucial. For users of SecondaryDAO, which leverages the Arbitrum network to optimize its tokenized real estate transactions, bridging tokens from Ethereum to Arbitrum is a vital process. This guide will walk you through the step-by-step process of transferring your tokens from the Ethereum mainnet to the Arbitrum Layer 2 solution, allowing you to participate in SecondaryDAO's offerings more effectively. Understanding the Need for Bridging Bridging is a process used to transfer assets and data between different blockchains—in this case, from Ethereum to Arbitrum. Arbitrum operates as a Layer 2 solution that runs on top of Ethereum, providing faster transactions and lower fees while still maintaining the robust security features of the Ethereum network. By bridging tokens, users can take advantage of these benefits without fully moving away from the Ethereum ecosystem. Step 1: Choose a Compatible Wallet To start the bridging process, you need a wallet that supports both Ethereum and Arbitrum networks. Popular choices include MetaMask, Trust Wallet, and Coinbase Wallet. Ensure your wallet is set up and funded with ETH for transaction fees on both networks. Step 2: Connect to an Ethereum-to-Arbitrum Bridge Access a reliable Ethereum-to-Arbitrum bridge. The official Arbitrum Bridge (bridge.arbitrum.io) is commonly used due to its security and ease of use. Connect your wallet to the bridge’s website. Step 3: Select the Tokens to Bridge Once connected, select the tokens you wish to transfer to Arbitrum. SecondaryDAO may have specific tokens that need to be bridged for use on its platform. Enter the amount and ensure you have sufficient ETH in your wallet to cover the gas fees. Step 4: Initiate the Transfer Confirm the transaction details and initiate the transfer. The bridging process involves a series of transactions, including token approval and the actual transfer of tokens. Monitor these on both the Ethereum and Arbitrum networks. Step 5: Confirm on Arbitrum After the transaction is confirmed on Ethereum, wait for the tokens to appear in your wallet on the Arbitrum network. This may take some time depending on network congestion. Once confirmed, your tokens are ready to be used with SecondaryDAO. Final Thoughts Bridging tokens to Arbitrum not only allows you to engage with SecondaryDAO's offerings more efficiently but also helps you benefit from lower transaction fees and faster processing times. Always ensure to follow security practices such as using secure wallets and interacting with official bridges to avoid potential risks.

Last updated on May 10, 2024

Unlocking the Potential of Arbitrum Blockchain: An Overview and Guide

Understanding Arbitrum Blockchain: An Overview Arbitrum, a Layer 2 scaling solution, is designed to enhance the performance and scalability of Ethereum. It does so by processing transactions off the main Ethereum blockchain (Layer 1), allowing for faster and more cost-effective transactions while still leveraging the security of the Ethereum network. This article will provide an in-depth overview of Arbitrum, its functionalities, benefits, and its integration with platforms like SecondaryDAO. Key Features and Benefits of Arbitrum 1. Increased Transaction Throughput: Arbitrum can process a much higher volume of transactions compared to Ethereum's mainnet. This is achieved by executing transactions off-chain and only settling final results on Ethereum, reducing congestion and gas fees. 2. Compatibility with Ethereum: Developers can deploy existing Solidity smart contracts on Arbitrum without needing significant modifications, making it an attractive option for those looking to enhance their applications without leaving the Ethereum ecosystem. 3. Enhanced Privacy: Arbitrum uses optimistic rollups that assume transactions are valid by default, only running computation to verify transactions if a challenge is made. This method not only speeds up the process but also enhances privacy by reducing the amount of data that needs to be publicly verified on the blockchain. 4. Decentralization and Security: Despite being a Layer 2 solution, Arbitrum does not compromise on the decentralization or security aspects of its transactions. It relies on the underlying security of the Ethereum network, ensuring that assets are as secure as on the mainnet. Arbitrum's Functionality Arbitrum operates by grouping multiple transactions into a single batch, which is then executed on its chain. This batch is later confirmed on Ethereum, ensuring finality and security while minimizing the load on the main Ethereum blockchain. The primary components of Arbitrum's functionality include: - Rollup Nodes: These nodes execute the transactions and produce proofs (known as rollups), which are then posted to Ethereum. - Arbitrum Bridge: This bridge facilitates the transfer of assets between Ethereum and Arbitrum, allowing users to move funds securely and efficiently. - Arbitrum Sequencer: This acts as a temporary transaction aggregator before batches are finalized on Ethereum, improving transaction speed and reducing latency. Integration with SecondaryDAO SecondaryDAO utilizes Arbitrum for its real estate tokenization and fractionalization platform. By operating on Arbitrum, SecondaryDAO can provide faster transactions and lower gas costs, which are crucial for facilitating micro-transactions in real estate investing. Here's how Arbitrum integrates with SecondaryDAO: 1. Efficient Transactions: Investors on SecondaryDAO experience quick and cost-effective transactions when buying, selling, or trading fractionalized real estate tokens, thanks to Arbitrum's efficient processing. 2. Secure Asset Management: All transactions and tokenized assets benefit from the robust security measures provided by both Arbitrum and Ethereum, ensuring that investments are secure against vulnerabilities. 3. Scalability: As SecondaryDAO grows and processes more transactions, Arbitrum's scalability ensures that the platform can handle increased load without performance bottlenecks. Arbitrum offers a compelling solution for applications like SecondaryDAO that require the security and functionality of Ethereum but need more scalability and efficiency. By utilizing Arbitrum, SecondaryDAO ensures that its users can engage in real estate investment in a manner that is not only secure and decentralized but also fast and affordable.

Last updated on May 11, 2024

Navigating SecondaryDAO's User Interface: A Walkthrough

SecondaryDAO's user-friendly interface empowers users to explore the world of tokenized fractionalized real estate effortlessly. This article provides a detailed walkthrough of SecondaryDAO's user interface, highlighting its key features, sections, and functionalities. By following this guide, users can navigate the platform seamlessly and make the most out of their real estate investments. Help Chat on the Bottom Right: Located at the bottom right corner of the interface, the help chat feature aims to provide real-time assistance to users. If you encounter any difficulties or have questions while using SecondaryDAO, the chat feature allows you to connect with support professionals who can guide you through the platform's various functionalities. Dashboard: The dashboard is your gateway to an overview of your current holdings. Here, you can view the status of your investments, with market values displayed for easy tracking. Property cards within the dashboard provide access to due diligence information, including relevant news and data that can assist you in making informed investment decisions. Marketplace: The marketplace section on SecondaryDAO showcases properties that are available for tokenized fractionalized real estate investments. Browse through the listings to discover potential investment opportunities. You can explore property details, investment potential, and participate in token sales to acquire fractional ownership. The marketplace is a dynamic hub where buyers and sellers connect within the SecondaryDAO ecosystem. Payment: The payment section of SecondaryDAO facilitates seamless handling of rental payments and income distributions. Utilizing smart contract technology, rental income is automatically distributed to token holders' wallets, eliminating manual tracking and administrative burdens. This user-friendly payment system ensures prompt and accurate transactions, streamlining the management of real estate investments. Learning Center: The learning center within SecondaryDAO provides a wealth of educational resources to assist users at every step of their investment journey. Here, you can find comprehensive guides, video tutorials, and informative articles that cover topics ranging from real estate investment strategies to blockchain technology. The learning center helps users expand their knowledge and make well-informed decisions. FAQs: The FAQ section within SecondaryDAO addresses frequently asked questions, providing answers to common queries. Whether you have inquiries about the platform's features, tokenized fractionalized real estate, or general user account management, the FAQ section offers quick and convenient access to essential information. Settings: The settings section allows you to personalize your SecondaryDAO experience. Here, you can update account details, configure notification preferences, and manage security settings. You have control over your profile information, ensuring a tailored user experience within the platform. SWAP Wallet: The SWAP wallet feature in SecondaryDAO offers users the ability to swap coins quickly and easily. With this functionality, you can exchange different cryptocurrencies or tokens seamlessly, providing flexibility and liquidity to your portfolio. By familiarizing yourself with SecondaryDAO's user interface and its various sections and functionalities, you can navigate the platform with ease. Whether you are exploring the marketplace, handling payments, accessing educational resources, managing settings, or utilizing the SWAP wallet, SecondaryDAO is designed to provide a seamless and intuitive experience for tokenized fractionalized real estate investors. SecondaryDAO's user interface is designed to simplify the process of investing in tokenized fractionalized real estate. Through its intuitive design, helpful features, and easily accessible sections, users can efficiently manage their investments, access educational resources, and make well-informed decisions within the platform. Start navigating the SecondaryDAO interface today to unlock the potential of real estate investing in the digital age.

Last updated on May 11, 2024

Connecting to the Arbitrum Sepolia Testnet with MetaMask

Connecting to the Arbitrum Sepolia Testnet with MetaMask Step 1: Setting Up MetaMask To begin interacting with SecondaryDAO on the Arbitrum Sepolia Testnet, you'll first need to configure your MetaMask wallet: 1. Open MetaMask. 2. Switch to the Arbitrum Sepolia Testnet by selecting it from the network dropdown. If it's not already available, then you'll need to add it manually: - Network Name: Arbitrum Sepolia Testnet - New RPC URL: https://arb1.arbitrum.io/rpc - Chain ID: 421614 - Currency Symbol: ETH - Block Explorer URL: Arbiscan Step 2: Importing Tokens To interact with tokenized properties, follow these steps: 1. Navigate to the specific property page on secondarydao.com. 2. Copy the contract address of the property you're interested in. 3. In MetaMask, go to your wallet and select "Import Tokens." 4. Paste the contract address into the designated field and confirm. 5. Step 3: Interacting with Properties Once the token is imported, you can engage in activities such as buying or selling tokens: 1. Go to the Market tab on SecondaryDAO. 2. Select the property by its token to view available transactions. 3. Enter the number of tokens you wish to trade and execute your order. Helpful Tips - Always verify the contract address on the official SecondaryDAO website before importing tokens to avoid scams. - Ensure you have sufficient ETH in your wallet to cover transaction fees, which may vary based on network congestion. For more detailed guidance, visit our help section or contact our support team through the chat feature on our website.

Last updated on Jan 22, 2025

How SecondaryDAO Revolutionizes Real Estate Investment

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.

Last updated on Mar 06, 2025

How Metrics Are Calculated in SecondaryDAO

SecondaryDAO uses a variety of metrics to evaluate property investments and ensure transparency in tokenized real estate transactions. Below is a breakdown of how the key metrics are calculated: 1. Total Investment Value (TIV): The total investment value represents the cost structure of a property asset on the marketplace. It is calculated as: TIV ($) = Underlying Property Price + Maintenance Reserves + Property Listing Fee - Underlying Property Price: This is the purchase price of the property, which fluctuates based on market conditions such as appreciation or depreciation. - Maintenance Reserves: A fixed amount allocated to cover property repairs and maintenance, replenished through rent deductions when necessary. - Property Listing Fee: SecondaryDAO charges a fee of 0-10% of the total property purchase price. TIV is then divided by $50, the initial property token price, to calculate the total number of tokens for the property. 2. Internal Rate of Return (IRR): IRR is a metric representing the potential returns from a property investment, considering cash flows and projected appreciation over time. It provides a combined measure of: - Cash-on-Cash Return: Yearly net cash flow relative to the total cash invested within the same year. For example, if an investor puts in $1,000 and earns $100 in a year, the Cash-on-Cash return is 10%. - Projected Appreciation: The expected increase in property value over time, calculated using the formula: Appreciation (%) = (Final Value – Initial Value) / Initial Investment × 100. IRR combines these two factors to give a comprehensive picture of expected returns, excluding external market conditions. 3. Cap Rate (Capitalization Rate): The Cap Rate assesses potential risk and return in real estate investments. It is calculated as: Cap Rate (%) = Net Operating Income (NOI) / Purchase Price × 100% This metric is particularly useful for comparing properties or markets and is regularly reevaluated to gauge market conditions. 4. Cash Flow: Cash Flow is the net monthly or annual income from a property after subtracting expenses from revenue. It provides insight into profitability. The formula for calculating monthly cash flow is: Cash Flow = Rental Income – Expenses For annual cash flow: Annual Cash Flow = Annual Gross Rent – Expenses Annual gross rent includes all tenant payments and supplementary income, such as parking or storage fees, while expenses include taxes, insurance, and maintenance costs. 5. Market Capitalization: Market capitalization in SecondaryDAO reflects the total value of a property based on current token prices. It is calculated as: Market Capitalization = Total Token Supply × Current Token Price This measurement dynamically adjusts based on token trading prices in the marketplace. By applying these calculations, SecondaryDAO ensures transparent and data-driven evaluation of properties, enabling investors to make informed decisions.

Last updated on Mar 06, 2025

SecondaryDAO Terms of Service and Privacy Policy

https://www.secondarydao.com/termsofservice https://www.secondarydao.com/privacypolicy Terms of Service Last Updated: Tuesday, 4/21, 2025 Welcome to SecondaryDAO.com (SD), operated by Secondary DAO SA de CV, ISAOA ATIMA. Please review the following terms carefully as they govern your use of our services. By accessing this site and any of its pages, you agree to be bound by the Terms of Service and Privacy Policy. 1. General Disclaimers - Secondary DAO SA de CV is not a registered broker-dealer or investment advisor and does not provide investment advice, endorsements, or recommendations for any properties listed on this site. - The content on this website is not an offer to sell, solicitation to buy, or a recommendation regarding any security. - You are solely responsible for evaluating whether an investment aligns with your objectives, financial circumstances, and risk tolerance. Consult with qualified legal and financial advisors for professional advice. 2. Account Requirements - You must open a SecondaryDAO Account to use our services. - During registration, accurate and complete information must be provided. You are fully responsible for all activity under your account. - Secondary DAO SA de CV reserves the right to suspend or terminate accounts for providing false or incomplete information. 3. Investment Risks Investing in real estate involves inherent risks, including: - Market volatility, which may result in partial or total loss of investments. - The unpredictability of future property values and potential negative cash flows. Before investing, carefully review all information and consult with tax and legal advisors. 4. Policies and Procedures (Articles 28–35 of the Regulation) 4.1 Spot Operations (Article 28) SecondaryDAO facilitates immediate transactions for tokenized real estate assets. Once the buy and sell sides agree on terms, transactions are settled instantly. This supports seamless trading and enhanced liquidity in our marketplace. 4.2 Forward Operations (Article 29) Currently, SecondaryDAO does not support forward operations. However, we may explore adding this feature in the future based on market demand and regulatory considerations. 4.3 Optional Purchase or Sale Operations (Article 30) Our platform does not yet support optional purchase or sale operations. Future updates may include these features depending on legal and operational advancements. 4.4 Settlement of Operations (Article 31) The SecondaryDAO Escrow Contract ensures secure and efficient settlements of digital asset transactions, maintaining compliance with applicable regulations. 4.5 Seizure, Arbitration, and Protection of Acquirers Assets (Articles 32–34) - Embargo (Article 32): SecondaryDAO has robust protocols to comply with legal embargoes on digital assets. While we provide self-custody wallets, our platform fosters a secure user environment. - Arbitration (Article 33): We adhere to international best practices for dispute resolution, offering an arbitration process for conflicts involving clients or the company. - Protection of Acquirers’ Assets (Article 34): Our Market Integrity Policy ensures operational transparency and fosters trust among participants. 4.6 Investments (Article 35) SecondaryDAO focuses on optimizing client returns while managing risks. We evaluate market conditions to make informed investment decisions responsibly. 5. Custodial Wallets SecondaryDAO does not offer a custodial wallet feature through its platform: - Users retain full control of their funds. - Funds are not used for any purposes without user consent. - Users must self-custody wallets and their contents at all times. 6. Withdrawal Limits There is a $50,000 USD weekly withdrawal limit for cash and cash equivalents, excluding property tokens. This limit is subject to change, but we strive to maintain liquidity. 7. Property Escrows Escrow accounts may be held in an IOLTA account managed by Secondary DAO SA de CV ISAOA ATIMA. Any accrued interest may be used to offset account management fees. 8. Third-Party Content Hyperlinks or reproduced content from third-party sources do not constitute endorsements by Secondary DAO SA de CV. 9. Contract Voting Any votes not made within timelimits will be proxied to the contract creator or contract manager ISAOA ATIMA. Acknowledgment of Risks By accessing this site, you understand and acknowledge: - The risks associated with real estate investments. - The potential for unpredictability in property performance and market value. Section X: Token Buyer Disclosures & System Governance Framework This section outlines the foundational disclosures, operational rules, and governance procedures applicable to all token buyers and users of the SecondaryDAO system. These terms are binding upon participation in any offering or transaction on SecondaryDAO. 1. Token Mechanics and Ownership - Property Tokens represent fractional economic rights in real estate-backed smart contracts but do not confer ownership or equity in the physical asset. - Tokens are issued to self-custodied ERC-20 wallets (e.g., MetaMask) and are non-custodial in nature. - Ownership entitles the holder to defined distributions (e.g., rental income), resale rights, and participation in governance votes, as applicable to each Property Contract. 2. Contract Evolution & Defaults Smart contracts govern all token interactions, and default behaviors may evolve. - New property deployments may: - Inherit default behaviors, - Override specific settings, - Or implement entirely new governance rules. - Unless otherwise stated, newly deployed contracts do not retroactively apply changes from earlier governance votes. 3. Governance Participation Token holders are granted governance rights over operational decisions including: - Property maintenance approvals - Distribution logic changes - Contract upgrades - Escrow reserve policies Default Voting Rules: - Any proposed action involving > $3,000 USD or 2% of the Initial Property Sale (IPS) value (whichever is greater) requires a vote. - Voting outcomes may be calculated as: - Simple majority (Yes vs. No votes) - Majority of total token supply (e.g., >50% of token holders voting Yes) - Specific rules are defined in the property’s smart contract. Proxy Voting: - If a holder does not vote within the designated timeframe, their vote is automatically proxied to the contract creator or manager (ISAOA ATIMA) unless explicitly opted out via wallet signature. 4. Escrow Replenishment Policy To ensure sustainability and risk mitigation, all Property Contracts implement automated escrow funding logic. Default Logic: - If escrow is <15% underfunded (i.e., at least 85% funded): - 20% of monthly rental income is allocated to replenish the escrow. - If escrow is ≥15% underfunded: - 50% of rental income is allocated to replenishment. - Remainder is distributed pro-rata to token holders. Governance Override: - Replenishment logic may be amended per-property by: - Voting among token holders - Contract upgrades with prior disclosure Transparency: - Escrow balances are published on-chain via smart contract functions (Balance(), TotalToken()). - Funding ratios and transaction history are publicly viewable. 5. Future Contract Deployments Upgraded contracts may change default rules. - Token holders will receive prior notice of any proposed changes or upgrades affecting: - Governance rules - Distribution policies - Escrow mechanics 6. Legal Acknowledgments By holding or interacting with Property Tokens: - You acknowledge the programmable, evolving nature of SecondaryDAO smart contracts. - You accept responsibility to review updates, vote on proposals, or opt out of proxy logic. - You acknowledge that participation is at your own risk and that SecondaryDAO does not guarantee returns, distributions, or asset performance. For additional information, please consult the Docs Center or contact us at feedback@secondarydao.com. Privacy Policy 1. Introduction This Privacy Policy ("Policy") describes how SecondaryDAO SA de CV ("SecondaryDAO SA de CV," "we," "us," or "our") collects, uses, and protects the personal information of users ("User," "you," or "your") who access our platform, website, or services. By using our services, you agree to the collection and use of your information in accordance with this Policy. 2. Information We Collect 2.1 Personal Information We collect personal information that you provide directly to us during the registration, KYC (Know Your Customer) process, and use of our services. This information may include, but is not limited to: - Full legal name - Date of birth - Nationality - Residential address - Government-issued identification (e.g., passport, national ID) - Email address - Phone number - Payment information (e.g., bank account details) - Transaction history 2.2 Non-Personal Information We may also collect non-personal information that cannot be used to identify you directly. This may include: - Browser type and version - IP address - Device type and operating system - Pages visited and the time spent on our website - Cookies and other tracking technologies 3. How We Use Your Information 3.1 Service Provision We use your personal information to provide and manage our services, including account creation, transaction processing, customer support, and compliance with legal and regulatory requirements. 3.2 KYC and AML Compliance Your personal information is used to verify your identity and assess your risk profile as part of our KYC and AML (Anti-Money Laundering) obligations. 3.3 Communication We may use your contact information to communicate with you about your account, service updates, or any issues related to our platform. This includes sending you transactional emails, security alerts, and important notices. 3.4 Marketing With your consent, we may use your information to send you promotional materials, newsletters, and other marketing communications. You can opt-out of these communications at any time. 3.5 Analytics and Improvements We use non-personal information to analyze how our services are used, to improve our platform, and to develop new features. This data helps us enhance user experience and tailor our services to better meet your needs. 4. Information Sharing and Disclosure 4.1 Third-Party Service Providers We may share your information with third-party service providers who assist us in delivering our services, such as identity verification services, payment processors, and cloud storage providers. These third parties are required to protect your information and use it only for the purposes for which it was shared. 4.2 Legal Compliance We may disclose your information to law enforcement, regulatory authorities, or other governmental entities if required by law or in response to legal requests (e.g., subpoenas, court orders). 4.3 Business Transfers In the event of a merger, acquisition, or sale of all or part of our business, your personal information may be transferred to the acquiring entity as part of the transaction. We will notify you of any such transfer and any new privacy policies that may apply to your information. 4.4 Consent We may share your information with third parties if you provide explicit consent for such sharing. 5. Data Retention We retain your personal information for as long as necessary to fulfill the purposes outlined in this Policy, including compliance with legal obligations, dispute resolution, and enforcement of our agreements. When your information is no longer needed, we will securely delete or anonymize it. 6. Data Security We implement appropriate technical and organizational measures to protect your personal information from unauthorized access, disclosure, alteration, or destruction. These measures include encryption, access controls, and regular security assessments. 7. Your Rights 7.1 Access and Correction You have the right to access and request correction of any personal information we hold about you. You may update your account information directly through our platform or contact us to request changes. 7.2 Data Portability You have the right to request a copy of your personal information in a structured, commonly used, and machine-readable format. 7.3 Right to Erasure You have the right to request the deletion of your personal information, subject to certain legal or contractual limitations. 7.4 Objection and Restriction You have the right to object to the processing of your personal information or request that we restrict its processing under certain circumstances. 7.5 Withdrawal of Consent If you have provided consent for the collection, use, or sharing of your personal information, you have the right to withdraw that consent at any time. However, this may limit your ability to use certain features of our services. 8. Cookies and Tracking Technologies We use cookies and similar tracking technologies to enhance your experience on our website. These technologies allow us to remember your preferences, track user activity, and analyze site traffic. You can control the use of cookies through your browser settings. 9. International Data Transfers Your personal information may be transferred to and processed in countries outside of your jurisdiction, including countries that may not have the same level of data protection as your home country. By using our services, you consent to such transfers. 10. Changes to This Policy We may update this Privacy Policy from time to time to reflect changes in our practices, technology, legal requirements, or other factors. We will notify you of any significant changes by posting the updated Policy on our website and, if applicable, through other communication channels. 11. Contact Us If you have any questions or concerns about this Privacy Policy or how we handle your personal information, please contact us at: SecondaryDAO SA de CV SV josh+kyc@secondarydao.com

Last updated on Apr 21, 2025

📘 Understanding SecondaryDAO Property Metrics: A Complete Guide

📘 Understanding SecondaryDAO Property Metrics: A Complete Guide Last updated: July 11, 2025 📌 Overview SecondaryDAO’s financial model is built on a simple but rigorous principle: real estate tokenization is based on actual acquisition cost plus all setup and reserve expenses, not just the seller’s asking price or estimated valuation. Each metric displayed in the dashboard reflects real-world underwriting, enabling investors to evaluate offerings with confidence. Token supply is determined by this formula: Total Capitalization (acquisition + reserves + setup) ÷ Token Price For example, the following costs are typically included: - Seller’s Proposed Asking Price – $50,000 - SD Listing Fee – $3,500 - Vacancy Reserve (2%) – $1,000 - Initial Maintenance Reserve (5%) – $2,500 - LLC Setup Fee – $600 - Appraisal and/or Inspection – $600 Total Investment Raise: $58,200 Token Price: $50 Total Token Supply: 1,164 tokens Every financial and yield metric on the platform flows from this foundation. 🏗️ Property Lifecycle & Data Evolution Phase 1: Pre-Launch The property record is initialized with basic metadata (name, address, type, image). Metrics will display as “Not Set.” Badge: NEW PROPERTY Phase 2: Simulated Metrics Data is imported from underwriting spreadsheets. The platform calculates token supply, CoC%, yields, and IRR based on defined costs. Badge: USING ESTIMATES Phase 3: Smart Contract Deployment Tokens are minted based on fixed supply. Escrow is created. Badge: READY TO LAUNCH Phase 4: Active Trading Tokens become tradable on the secondary market. Real rent collection and distributions begin. Badge: TRADING ACTIVE 📊 Core Financial Metrics Token Price Typically set at $50, this represents the base unit value used to derive token supply from the total capital stack. It may remain fixed or adjust in future offerings. Token Supply Calculated from total acquisition + reserve + setup costs, not valuation. Formula: Token Supply = (Acquisition + Setup + Reserves) ÷ Token Price Example – 123 MainST17050 - Asking Price: $50,000 - SD Listing Fee: $3,500 - Vacancy Reserve: $1,000 - Maintenance Reserve: $2,500 - LLC Setup Fee: $600 - Appraisal/Inspection: $600 - Total Raise: $58,200 - Token Price: $50 - Token Supply: 1,164 tokens Market Capitalization Token Price × Token Supply Example: $50 × 1,164 = $58,200 Net Asset Value (NAV) Reflects current or projected appraised value. NAV can diverge from market cap when token price is based on cost rather than market valuation. 📈 Yield & Return Metrics Cash-on-Cash Return (CoC%) Measures net income return on total raised capital. Formula: CoC% = (Annual Net Cash Flow ÷ Total Investment Raise) × 100 Example: $12,102 ÷ $58,200 = 20.79% Gross Rental Yield Represents rent relative to property value. Formula: (Annual Gross Rent ÷ Property Price) × 100 Example: $18,000 ÷ $50,000 = 36.0% Token Yield Reflects what tokenholders receive annually relative to their $50 token. Formula: (Annual Distribution ÷ Token Price) × 100 Example: $10/year ÷ $50 = 20% Projected Internal Rate of Return (IRR) Incorporates rental income, appreciation, and exit assumptions. Example: If $121,020 is the modeled sale price after 5 years, the implied IRR is ~10%. 🏷️ Badge System Badge Condition Meaning NEW PROPERTY Data score < 3/5 Only basic details entered USING ESTIMATES Mock data imported Simulated metrics visible READY TO LAUNCH Token supply set, escrow ready Smart contracts deployed TRADING ACTIVE Trading live Market activity and price visibility RENTAL INCOME Rent collected and distributed Real returns flowing to tokenholders 📊 Data Source Integrity Data Type Source Accuracy Update Frequency Property Info Admin input High As needed Token Economics Derived from cost structure High At listing Pre-Launch Financials Spreadsheet import Moderate Pre-listing Rental Income Property managers High Monthly Trading Data Blockchain Immutable Real-time 🎯 How to Interpret the Metrics For Pre-Launch Properties Metrics such as CoC%, IRR, and token yield are derived from pro forma projections based on hard costs and expected income. These are useful for modeling investor returns but not guarantees. For Active Properties Metrics reflect actual operating performance. Rental income and tokenholder distributions update monthly. Token prices may adjust based on supply/demand in secondary markets. ⚠️ Red Flags to Watch For - “Calculating…” remains unresolved → Data may be missing - Unrealistically high returns → Check expense/reserve inputs - NAV differs sharply from market cap → Token price may need review - No rental income on active listing → Possible vacancy or reporting lag 🧠 Investment Decision Support Compare Properties Intelligently - Favor high data quality scores (3–5) - Ensure reserve and setup costs are clearly defined - Match CoC% and IRR with your investment goals - Consider diversification by asset type and geography Understand Risk Profiles Lower Risk: - Documented reserves - Strong rental history - Multi-unit or diversified tenant base - Conservative leverage Higher Risk: - No reserves included - Speculative IRR assumptions - Single-tenant properties - High reliance on appreciation to justify returns 🔄 Transparency & Update Frequency Metric Type Frequency Token Trading Data Real-time Rental Income Monthly Property Valuation Quarterly/Annual Mock Data Updates On-demand All changes are logged, versioned, and transparently disclosed to stakeholders. 📞 Support Channels - General Info: SecondaryDAO Help Center - Property Questions: Assigned property manager via support chat - Metric Inaccuracies: Email support@secondarydao.com - Investment Advice: Consult a licensed financial advisor (SecondaryDAO does not provide financial advice) 🚨 Reporting Issues To report data issues: 1. Screenshot the page or error 2. Identify the property and metric 3. Submit via chat or email Guaranteed response within 24 hours 📌 Final Note All SecondaryDAO property metrics begin with real-world, line-item costs—not hypothetical values. By tokenizing the actual acquisition, reserve, and onboarding expenses, investors receive a more accurate, cost-based stake in each asset. Use these metrics as tools to assess risk, measure performance, and make smarter real estate investment decisions. Disclaimer: This guide is informational and does not constitute investment advice. Always review our Risk Disclosures and consult qualified professionals before investing.

Last updated on Jul 11, 2025

⚠️ SecondaryDAO Risk Disclosure Summary

⚠️ SecondaryDAO Risk Disclosure Summary Last updated: April 21, 2025 This summary is for informational purposes only and does not constitute financial advice. 📌 Why Risk Disclosure Matters Investing in tokenized real estate on SecondaryDAO carries both opportunity and risk. While our platform is designed for transparency, security, and ease of use, it’s important you understand the risks involved before buying property tokens. 🏠 Real Estate Investment Risks Even tokenized real estate is subject to traditional real estate risks, including: - Property Damage: Fires, floods, or disasters can temporarily halt income and reduce property value. Mitigation: We carry insurance and maintain repair reserves. - Market Fluctuations: Real estate values can drop due to local conditions or broader economic changes. Mitigation: We update property valuations regularly and encourage diversification. - Economic Shocks: Rising interest rates or inflation can reduce demand and increase costs. Mitigation: We use stablecoins (USDC/USDT) and maintain flexible minimum investment thresholds. 💸 Token-Specific Risks Tokenizing real estate introduces additional considerations: - Liquidity Risk You may not be able to sell your tokens quickly or at your desired price—especially in thin markets. We operate a secondary market to help match buyers and sellers. - Governance Risk Some decisions (e.g., major repairs) require DAO token holder votes. Low participation can delay action. We enforce voting thresholds and educate users on participation. - Platform Downtime Technology failures can impact token trading or rental income distribution. We use redundant infrastructure and perform regular failover tests. 🛡️ Cyber & Security Risks - Smart Contract Bugs: Undiscovered code vulnerabilities may allow unauthorized access. We conduct external audits and monitor all contracts post-launch. - Asset Theft: While most user funds are kept in cold wallets, a portion remains in hot wallets to support real-time transactions. We cap hot wallet exposure and use multi-signature access. - Data Breach: Unauthorized access to your personal data (e.g., KYC details). We use AES-256 encryption, multi-factor authentication (MFA), and role-based access controls. 🧾 Regulatory & Legal Risks - Compliance Failures: If we or our partners fail to comply with El Salvador’s digital asset laws, it could impact your access to tokens or funds. We undergo regular audits and report any suspicious activity to regulators. - Jurisdictional Limitations: Some users may not be able to invest or trade due to local laws. We screen users during onboarding and restrict access where required. 🔄 What We’re Doing to Protect You - Real-time AML/KYC checks and transaction monitoring - Insurance and reserves for physical damage - Regular property valuations and smart contract audits - Detailed logging and quarterly risk reviews - Transparent governance through DAO voting 🚨 Final Notes All investments carry risk. Never invest more than you’re prepared to lose. We encourage you to: - Diversify your holdings across multiple properties - Review each property's Data Quality Score and Historical Performance - Ask questions before investing—our team is here to help 📞 Questions or Concerns? - General Support: Chat with us anytime by going to app.secondarydao.com and clicking on the chatbot on the bottom right. - Legal or Risk Questions: support@secondarydao.com - Need Help Making a Decision? Consult a licensed financial advisor Would you like this summary as a standalone .md file or embedded into your Chatwoot knowledge base HTML? I can generate that next.

Last updated on Jul 11, 2025

🏦 Understanding Escrows in Tokenized Real Estate on SecondaryDAO

🏦 Understanding Escrows in Tokenized Real Estate on SecondaryDAO 📘 What Is an Escrow? In real estate, an escrow is a reserve of funds set aside to cover future property-related obligations. On the SecondaryDAO platform, escrows serve as financial safety mechanisms that ensure each tokenized property remains operational by covering both fixed and variable costs. This structure helps stabilize investor returns even in periods of uncertainty. Escrows are not fees or hidden charges. They are planned reserves designed to protect against cash flow interruptions from predictable expenses like property taxes, insurance premiums, maintenance costs, and periods of vacancy. Escrow Types on SecondaryDAO Initial Escrow (Funded at Property Raise) The Initial Escrow is fully capitalized as part of the total investment raise for each property. It includes all anticipated operating obligations and reserve requirements for the first year. This amount is raised in addition to the seller's net offer and is placed in a DAO-controlled wallet. Formula: Total Raise = Net Offer to Seller + Initial Escrow Components of the Initial Escrow may include: - First-year property taxes (prepaid) - First-year landlord insurance (prepaid) - Maintenance reserve (typically 5% of purchase price) - Vacancy reserve (typically 2% of annual gross rent) - Deferred maintenance (if applicable) - DAO listing fee - LLC setup, admin, and legal filing costs - Appraisal and/or inspection fees - Transfer taxes and real estate closing costs By fully funding these obligations at acquisition, SecondaryDAO ensures the property has sufficient resources from day one, reducing reliance on rent flow to maintain operations early in the holding period. Normalized Escrow (Required Operating Reserve) Following acquisition, SecondaryDAO maintains a Normalized Escrow—a minimum balance held throughout the holding period. This operational buffer must remain funded to ensure resilience in the face of financial disruptions or emergencies. Normalized Escrow typically includes: - 1 year of property taxes - 1 year of landlord insurance - Maintenance reserve (rolling) - Vacancy reserve (rolling) This escrow balance is not distributed to investors. It is used only when necessary and must be replenished promptly through a structured build-back process. What Is Escrow Build-Back? Escrow build-back is the system's method for replenishing the Normalized Escrow when its balance falls below the required threshold. Before rental income is distributed to investors, a portion may be withheld to rebuild the reserve to its target level. Example: If the required escrow is $3,000 and the balance drops to $1,800, the shortfall is $1,200. The DAO will withhold a portion of rent until the escrow is restored. How the Build-Back Rate Is Calculated The monthly withholding amount is determined based on: - The size of the escrow shortfall - The number of months remaining in the fiscal year - A system-defined cap that protects investor distributions from excessive suppression Formula: Monthly Build-Back = MIN(MaxRate, Shortfall ÷ MonthsRemaining) Example: Shortfall = $1,200 Months remaining = 10 Max rate = $200/month The system applies $120/month until the escrow is restored. Escrow Withholding Strategy Breakdown The platform employs a tiered strategy that adjusts withholding intensity based on the severity of the shortfall: Most Aggressive (Emergency Rebuilding) - Shortfall: 75% or more of required escrow - Withholding: 90% of rental income - Investor Distribution: 10% - Strategy: EMERGENCY_ESCROW_REBUILDING Very Aggressive (Current Scenario Example) - Shortfall: 50–74% - Withholding: 75% of rental income - Investor Distribution: 25% - Strategy: AGGRESSIVE_ESCROW_REBUILDING Moderate (Standard Rebuilding) - Shortfall: 25–49% - Withholding: 50% of rental income - Investor Distribution: 50% - Strategy: STANDARD_ESCROW_REBUILDING Minimal (Targeted Rebuilding) - Shortfall: Less than 25% - Withholding: Only the amount required monthly - Investor Distribution: Majority of rental income - Strategy: TARGETED_ESCROW_REBUILDING Fully Funded (No Withholding) - Shortfall: 0% - Withholding: 0% - Investor Distribution: 100% - Strategy: FULL_RENT_DISTRIBUTION Application Example Let’s assume the Normalized Escrow target is $3,000. Scenario A – Emergency Level Shortfall Current Balance: $500 Shortfall: $2,500 (83%) Result: 90% of rent withheld, 10% distributed to token holders Scenario B – Aggressive Level Shortfall Current Balance: $1,200 Shortfall: $1,800 (60%) Result: 75% of rent withheld, 25% distributed to token holders Scenario C – Moderate Level Shortfall Current Balance: $2,000 Shortfall: $1,000 (33%) Result: 50% of rent withheld, 50% distributed Scenario D – Minimal Shortfall Current Balance: $2,400 Shortfall: $600 (20%) Result: Only the required monthly portion is withheld (e.g., $60/month) Scenario E – Fully Funded Current Balance: $3,000 Shortfall: $0 Result: No withholding, 100% rent distributed Why Escrow Matters to Investors Protects Cash Distributions Ensures investor payouts aren’t interrupted by maintenance, tax deadlines, or insurance lapses. Promotes Operational Stability Keeps properties compliant and liquid, even during vacancies or economic stress. Enhances Transparency Escrow balances and rebuild status are visible on-chain and via your investor dashboard. Supports Regulatory Compliance Conforms to financial prudence standards and El Salvador’s CNAD DSAP licensing requirements. How SecondaryDAO Manages Escrows - Escrow requirements are included in all property offering summaries - DAO-controlled wallets and smart contracts enforce escrow logic - Rebuild schedules are automatically enforced based on shortfall severity - Escrow status is reported through investor dashboards and periodic updates - All balances are regularly audited and visible for investor assurance Final Takeaway Escrows are a cornerstone of risk-managed real estate tokenization. SecondaryDAO uses them to ensure each offering is operationally sound, financially resilient, and investor-aligned from day one. With smart, tiered build-back logic and on-chain transparency, investors can have confidence that their yield is protected by disciplined reserve management — not just assumptions about rent flow.

Last updated on Jul 25, 2025