Aqarchain Democratizes the Real Estate Market With Blockchain
Real estate happens to be the largest and most important asset class across the whole world. Notably, all the property in the world- be it commercial or residential- was already worth an estimated $228 trillion back in 2019. However, despite this growth, astonishingly the real estate industry is yet to be disrupted by emerging technologies as much as the other leading industries.
Blockchain in particular is a technology that can decentralize the real estate sector, and make the asset class accessible to a broader number of inventors. Incidentally, that is exactly what Aqarchain intends to do. The platform blends blockchain and smart contracts with the real estate market with the aim to create a decentralized ecosystem where investing in real estate can be made as simple as investing in shares on the stock market. For that, Aqarchain puts real estate properties on the blockchain and fractionalizes them.
So, What Exactly is Aqarchain Doing?
Aqarchain was launched back in 2018 by a group of industry professionals to create a real-world use case for technologies like blockchain; the parent company behind the platform is Smart Chain Holding.
Aqarchain is the very first decentralized marketplace in the world for real estate NFTs (non fungible tokens). With Aqarchain, the developers aim to bring a state-of-the-art investment platform within the real estate industry that deploys the decentralized, tokenized infrastructure of blockchain.
The Aqarchain platform plans to give users a chance to explore the real estate asset class in a new way and create new, innovative opportunities for all parties involved. Plus, with blockchain, investors can have direct access to the properties they are looking to add to their portfolios. The Aqarchain platform’s planned model has two platforms that run parallel on two separate domains with similar technological frameworks, but vastly different regulatory frameworks. On these two platforms, investments through fiat money and crypto will be allowed, however, the mechanisms for various operations and the governance structures will vary between the two platforms.
The Aqarchain platform initially will offer the following:
- Tokenization of Assets: On Aqarchain, an NFT is issued for each property listed, and then that NFT is fractionalized.
- Non Fungible Tokens: Every property listed on Aqarchain is authenticated through the NFT created for that property, which contains the title deed of the property. Once that NFT is further fractionalized, the buyers of these fractional tokens become fractional owners of the original NFT, which carries the actual property’s title deed as metadata.
- Fractiotional Tokens: Once someone buys one of these fractional tokens made off a property’s NFT, the owner can claim their rights on the property, vote in governance decisions of the property, claim returns on it and any capital appreciation or depreciation on the value of the property as per market trends, all with their fractional tokens.
- Crowdfunding: Investors and accredited investors can purchase fractional tokens of various property NFTs after successfully clearing the platform’s KYC requirements. Clients can purchase fractional tokens through the platform’s native AQR token, or with other crypto assets like BTC, ETH, BNB, XTZ, and many more. Those purchasing with AQR will be receiving additional discounts.
- AQR Token: The AQR token, as mentioned, is the Aqarchain platform’s native utility token.
- DeFi Staking: AQR tokens can be staked on the Aqarchain blockchain to earn yet more rewards. Plus, users can also stake XTZ and MATIC on the platform to earn additional AQR coins as rewards.
- Governance Voting: The fractional token owners on Aqarchain can vote on their property governance decisions by depositing AQR tokens.
Types of Users on Aqarchain
The users within the Aqarchain ecosystem belong to these primary categories:
- Platform Administrator: The Aqarchain platform provides an admin responsible for verifying all real estate listed, performing due diligence, generating governance votings, distributing rental yields, and performing the regular operations required of the platform.
- Investors: Investors on the Aqarchain platform can be further divided into two classes: retail investors and professional investors.
AQR, the native utility token of the Aqrachain ecosystem, is an ERC 20 token. The maximum supply of AQR tokens is capped at 100 million. The AQR token built on top of the Tezos protocol finds its main use case as a funding instrument, but it can also be staked for rewards.
On Aqarchain, the AQR token provides access to the following services:
- Platform Payments: Aside from fundraising commissions and rental yields, both secondary trade fees and advertising fees are paid out in AQR tokens.
- Staking and Rewards: All staking rewards on Aqarchain are paid in AQR tokens. Further, AQR tokens are to be staked for voting rights on the platform, and rewards for voting results are also paid in AQR.
- Discounts and Offers: Those who purchase fractional tokens with AQR tokens will be receiving additional discounts, plus the Aqarchain platform offers greater rewards APY for staking AQR tokens.
With its innovative use of blockchain, NFTs, and property fractionalization, Aqarchain is all set to reform the traditional real estate marketplace. You can read the project whitepaper to find out more about the Aqarchain ecosystem, or follow their progress on Facebook, Twitter, LinkedIn, Instagram, YouTube, Medium, Telegram, and Discord.