Revenue Distribution

We enable investing in coliving assets through purchase of BSPT tokens. Our listed real estate assets generate revenues due to rental agreements between the property operators and tenant(s) of the property.

Through the tokenization process, the operator agrees to transfers economic rights onto BSPT token holders, which is achieved with the signing of a Corporate resolution in which the percentage of revenues is specified. These recurring revenues are to be converted into a stablecoind (e.g. DAI, USDC, USDT) and distributed to BSPT token holders on a predefined time interval (e.g. monthly, quarterly or annually) based on the amount of tokens issued, where 100,000 BSPT represents 100% of the economic rights of the property.

As BSPT tokens can also be traded on the secondary market, there is a certain complexity when it comes to calculating how much of the total revenues should be distributed to each individual BSPT token holder for a given time period. To accurately execute this an off-chain algorithm has been developed by Blocksquare that is then used to place deposits into the Revenue Distribution smart contract deployed on Ethereum mainnet.