Real world assets (RWAs) fix BAD tokenomics!! - find out how!

[@TokenDesign]

LEARN TOKEN SALE MASTERY TODAY (pro spreadsheet models included!) 👇👇👇 rmckinley.net/courses/tokenomics-token-sale-mastery

[@rubenmartinezfanals3331]

Excellent explaining as usual Roderick! Got a much clearer understanding of the new RWA narrative. Thanks for sharing

[@TokenDesign]

Appreciate the good feedback Ruben! I think you're in/have been in the renewables space right? You may find this paper by the World Bank on the prospects for tokenizing aspects of infrastructure financing interesting. It's definitely an inspiring vision... but as the paper notes, progress is sure to be slowed by the cross-jurisdictional complexity of these larger infra projects... documents.worldbank.org/en/publication/documents-reports/documentdetail/099200503082329768/p17425408f3aa00580a2620810813ed0370

[@rubenmartinezfanals3331]

@@TokenDesign I'm indeed in the renewables space. I'll take a look over the weekend. Thanks for sharing!

[@victoreluke3287]

Thank you Roderick for the insight on RWA

[@TokenDesign]

You're most welcome! 🙏

[@videozolch]

Very well structured and cogent content. Could I suggest making a video that goes more into detail of the creation of rwa tokens?

[@TokenDesign]

Thanks! Can I just check what details you're after as far as "creation" is concerned?

[@nurmalso4599]

wow thank you Rod. I want to start a project by tokenicing my properties for the possible community, but dont have a idea hot to create a token like that? Just easy like a "token"?

[@TokenDesign]

There isn't a single answer - this is definitely more complicated than launching your own non-RWA token. They key issue lies with understanding the legal compliance required to do everything properly and legally, including how blockchain technology is to be used. This will differ from jurisdiction to jurisdiction.

[@nurmalso4599]

@@TokenDesign I would set up a corporation as a legal form in Germany and have it monitored by a specialist lawyer in the banking industry. The tokenomic is one, I already have the land, I have the planning, but I don't have the necessary capital for construction. Now my question, how could I create the tokens? Once construction is complete, 48 residential units will either be sold, rented to the state for €10.4 million or to the university (500 meters away) for students. Ultimately, it is sustainable to rent this out as it benefits the project and investors and the capital remains secured, as much as it was at the time of purchase and its value. I thought the tokenomics should be kept simple and viewed only as a source of capital. Like a pool that provides €1.8 million for construction and ultimately adds lasting value through rental or sale. I hired a tech from Ernst & Young (free of charge, after which he receives a share paid out or in tokens). If the pool/market cap grows, this would be an advantage either way. The token holders remain as typical silent partners. The timetable is currently somewhat lacking in structure. I would like the decision about investments to be made in such a way that the community should have a say. This also shows me that investors shouldn't just blindly invest in X and thus have the opportunity to withdraw their capital or contribute. Thank you for your great feedback Rod. 👍🏻

[@TheCrisscross29]

RWA assets are offchain, where is the transparency?

[@TokenDesign]

At bottom you get the same kind of transparency as you get as when you buy a bond, mortgage backed security, equity, gold you keep at a vault... Etc. I.e. using off chain mechanisms and institutions. Where provenance or ownership history is critical to asset value, Blockchain can offer enhanced transparency in that regard.

[@TheCrisscross29]

@@TokenDesign Let's focus on one sharp example. A real estate developer tokenizes himself, takes out a loan, does not repay it, does not pay subcontractors, does not renovate. How can token recipients verify his activities, his liabilities, his earnings, his obligations towards token holders? Since it's a company, it probably has quarterly reports, what happens between reports is just trust. Where is the transparency?

[@TokenDesign]

You would rely on the same/similar safeguards to ensure the real estate developer would not be able to run away with money from a bank loan in the conventional case. A diligence process, certain identity and legal company registration requirements, published and audited accounts perhaps would need to be met in order for this real estate developer to be able to issue an RWA token, just as would be needed to be able to apply for a loan. With the same legal penalties and recourse applied in the event of compliance failures, fraud or default. In the event that contracts are agreed with payments contingent on some measure of performance, an agreed measuring process would need to be set up - same as happens under ordinary offchain contracts. (There is speculation of IoT (internet of things) and oracle technology expanding such measurement/monitoring capabilities at lower cost in the future, but that's even further out.) RWA tokenisation is not about any person being able to call themselves a real estate agent and issue their token as they please - RWA token issuance and trading will be substantially permissioned and regulated by design - including the performance of any transparency reporting and disclosures necessary under a traditional security issuance, or financial contract.This contrasts strongly with the "permissionless" ethos of traditional crypto.

[@TheCrisscross29]

@@TokenDesign Thank you for your point of view

[@paydayspayoff358]

Chainlink

[@audiosystemb8448]

Pity, you speak too fast.