Landshare Team
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Hello everyone, and welcome to the latest Development Update! It’s been a little over 2 months since we released the Landshare RWA Token, our most ambitious platform update yet. This update was the result of several months of hard work from the whole team, but we knew it only represented the first step in building the tokenized real estate ecosystem that we envision for Landshare.
After the successful launch, we immediately started thinking about what we needed to accomplish next to continue moving Landshare. As a result, we crafted 4 Core Priorities for 2024:
Each of our 4 Core Priorities are represented in our Q1-Q2 Roadmap:
In this update, we’re putting a special spotlight on our upcoming partnerships and integrations with several amazing projects across the RWA Space. We also have a major update on one of our top initiatives to improve platform accessibility, some new DAO proposals, and a new quality-of-life update about to go live.
Finally, we have an important update for all Gate.io users and traders.
Let’s dive in!
Rapid onboarding is paramount to a deeper level of engagement with the platform, and one of the biggest hurdles to new users is funding gas tokens for a DEX swap or signing up for a new exchange account. As a result, credit card payment options have been on our radar for a very long time.
As part of our 2024 Roadmap, we’re finalizing an agreement with a trusted crypto payment processor to finally enable credit and debit card payment options for our platform! This integration will enable eligible users to purchase up to $500 in LAND directly from the website or app, eliminating one of the most common barriers for new users.
The card payment option is expected to go live next week and will initially support only the LAND Token. However, we’re also working to enable LSRWA purchases through the same process. Stay tuned!
After many requests from the community and a successful DAO vote, we’ll be adding a dark mode option to the app in the coming days. To enable dark mode, scroll to the bottom of the page and move the slider to the nighttime position when the update goes live.
A new proposal has hit the Landshare DAO, designed to create a referral system for Landshare RWA Tokens. Here is a summary of the proposal:
Why should we implement a Referral System?
As we strive to enhance user engagement and expand our user base, it’s essential to leverage the power of referrals, because this is one of the best Marketing Tools that exist. One other Positive is, that you only pay for the Marketing when the user did the Action — in this case, he buys the $LSRWA-Token.
How exactly could that work?
Im thinking about a PPL (Pay Per Lead) Programme, where the refferer is reffering a new user to buy $LSRWA-Tokens. The referrer would then be rewarded after the reffered person held the $LSRWA Token some time (1–6 Months perhaps). This additional Time is neccessary to frontrun abuse of the System.
We could also give the referred Person a little benefit (discount, NFT, whatever) for his 1st Purchase, after he held some time, to make the System even more attractive.
How to finance?
This could be financed by a part of the normally burned Land Tokens (of every buy) for example. Instead of burning the full 10% of $LAND of a Buy, we could just burn 7,5% and the remaining 2,5% goes to the refferer as a reward.
Click here to read the full proposal and cast your vote. If passed, the team will construct a refined version of the proposal for the Quarterly DAO Vote at the end of Q1.
Over the past several months, we have been in discussions with dozens of amazing projects in the emerging RWA space. We always seek new opportunities to expand our product accessibility, utility, and visibility through integrations and partnerships. In this section, we’ll be covering a few of our future integrations, but as always — there’s more to come!
The future of markets is on the blockchain, and the future of blockchain is cross-chain. It is more important than ever to develop applications that are seamlessly interoperable across multiple blockchain networks. We envision the Landshare RWA Token as a DeFi-integrated, omni-chain asset for the tokenized future.
The first step in this process is the integration of Chainlink CCIP, a secure blockchain interoperability protocol built by Chainlink Labs. CCIP enables seamless cross-chain token transfers and allows us to craft a multi-chain ecosystem. When fully integrated, most or all features available on BSC will also be available on all other supported chains.
Once implementation is complete, CCIP will allow us to build partnerships and integrations with virtually any project across the RWA Space, improving the utility and accessibility of our core features. Integrations are one of our 4 Core Priorities for the year, and CCIP is the crucial first step to unlocking these opportunities.
Plume is the first modular L2 blockchain dedicated to all real-world assets (RWAs) that directly integrates asset tokenization and compliance providers into the chain.
We recently had a Twitter Space with Plume’s co-founder, Teddy, and have had additional discussions with the Plume Network team behind the scenes. We are excited about their vision and are planning to build on the Plume Network as part of our broader cross-chain strategy.
Plume is still in the Testnet phase, but we are looking forward to building with them all the way to the Mainnet launch. Stay tuned for more announcements regarding this partnership soon!
IX Swap is an RWA platform that offers trading solutions akin to Uniswap for Real-World Assets (RWA) & Security Tokens (STO). This is precisely the type of product we feel is necessary for the development of a vibrant RWA ecosystem, so we knew IX Swap was a perfect fit.
Initially, we will be collaborating with IX Swap for Twitter Spaces and other activities to spread the word about the RWA narrative and how DeFi primitives like decentralized exchanges (DEX) can help craft a tokenized economy for the future. Later this year, we plan a full integration, including LSRWA integration into the IX Swap ecosystem.
Gate.io will be changing our token symbol from LAND to LANDSHARE and plans to take the deposit, withdrawal and trading services for Landshare (LAND) offline, including spot trading, quantitative trading, and liquidity mining on February 28, 2024, 06:00 A.M. UTC. After the renaming is completed, Landshare will be relisted with the new token symbol LANDSHARE.
This renaming is merely a change in name and does not involve any blockchain migration. Gate.io users don’t need to do anything in particular. To read the full announcement post from Gate, click here.
To wrap up this development update, we want to sincerely thank our community for their continued support and enthusiasm. The past few months have been incredibly productive, and our upcoming integrations will take us one step closer to a fully realized tokenized real estate ecosystem.
We also understand that many members are eagerly awaiting news about new exchange listings and other developments not mentioned in this post. Rest assured, we are working hard to deliver the entire roadmap in the expected time frame and will have more information to share in future updates.
Last but not least, we’d like to extend a warm welcome to all of our new community members! We’ve seen some exceptional growth in recent weeks and expect to see this trend continue as the RWA narrative continues to gain momentum. If you’re new or have been away for a while, be sure to check out our guides to learn about all the ways you can earn with Landshare’s ecosystem:
As always, if you have any questions, concerns, or suggestions, don’t hesitate to reach out to us on our Telegram group or other social media channels. Remember — your participation and feedback are vital to the success of Landshare!
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Landshare Team
The advent of blockchain technology heralds a seismic shift in the real estate sector, promising unparalleled liquidity and accessibility through tokenizing real-world assets (RWAs). Traditionally we have seen the real estate sector as an illiquid asset class with high entry barriers but now it is reimagined by integrating on-chain secondary market trading of RWA tokens.
According to CoinMarketCap, the market cap of real-world asset (RWA) tokens stands above $53.7 Billion. This substantial market cap shows us that the RWA sector in the crypto market is proliferating. The high pace of growth ensures that it will soon overlay a notable portion of the traditional real estate market.
We can see how the RWA narrative has taken crypto space by the storm, and it has made a massive leap in the financial landscape. It is making tangible financial assets such as real estate investments more fluid, transparent, and accessible to a broader spectrum of investors. The amalgamation of RWA tokens with secondary market trading brings unprecedented advantages for you in the highly lucrative real estate investment sector.
We can understand secondary market trading as trading of assets among buyers and sellers rather than with the companies or projects. A budding project in the crypto space launches a token through either an ICO, IEO, or IDO, which primarily trades native tokens in exchange of raising funds from investors. After the launch, when these tokens are up for trade among traders, it becomes a secondary market, and the trading becomes secondary market trading.
NYSE and NASDAQ are, for instance, secondary market trading platforms, as they offer you to trade or invest in stocks. On the same note, trading on both centralized and decentralized crypto exchanges falls within secondary market trading. We can trade Bitcoin on crypto exchanges such as Coinbase or buy or sell Ethereum on decentralized exchanges like Uniswap.
Real-world assets (RWAs) refer to objects possessing tangible or intangible value, including but not limited to gold, fine art, and real estate. In 2024, the scope of these assets linked to the real world is set to broaden beyond the confines of physical space. The advancement of blockchain technology makes the expansion possessive, providing a unique on-chain identity to traditional assets. This innovation creates a novel concept known as the real-world asset token.
The global real estate market is over $630 Trillion today and is continually growing. It is expected to hit $729 Trillion by 2028. This also makes real estate investments one of the most lucrative investment vehicles due to huge returns, but they do come with their own shares of hassle.
The real estate market is illiquid, and even a single transaction of buying or selling a property could take weeks or even months. In addition, it takes time to complete the extensive paperwork required for a transaction, making the whole process inefficient.
With the introduction of real estate-backed RWA tokens, real estate property transactions can now be carried out faster, more transparently, and more efficiently. There's more to the phenomenon than just that; let's delve into the benefits of trading RWA tokens in secondary markets.
As mentioned above, the RWA crypto tokens already have a market cap of billions of dollars. Several projects are spearheading change within the space with unique propositions and offerings.
Landshare ($LAND) is among the rare projects that offer real estate-backed RWA tokens: Landshare RWA ($LSRWA). $LAND is the native utility and governance token that takes care of transactions and other operations over the platform.
The RWA token represents the unit of the pool of real estate properties 1:1. Landshare makes it possible for you to step into tokenized real estate investments with as low as $1. Landshare RWA tokens are playing a crucial role in changing the real estate investment landscape with unique propositions and offerings.
Landshare is actively tackling the challenge of the lack of secondary trading options for most security tokens with a comprehensive three-pronged approach. The strategy includes on-chain valuations, ensuring transparency with up-to-date property valuations and cash reserves; fixed price liquidity, maintaining token value alignment with the underlying assets through controlled sales; and DEX Trading, aiming to foster a vibrant secondary market for LSRWA tokens by enabling unrestricted trading.
The upcoming listing of LSRWA Tokens on the DS Swap Security Token DEX is a significant milestone in this endeavor for Landshare. The on-chain real estate trading by offering instant settlements, no transaction fees, and the flexibility to trade against LAND or stablecoin pairs will be possible and it's a paradigm shift in making.
The introduction of the DS Swap listing is expected to amplify trading dynamics by providing zero-fee liquidity pools, facilitating arbitrage opportunities, and allowing for higher trading limits. Landshare takes a leap in resolving the liquidity issues with the DS Swap Security Token DEX listing, promising a more fluid and accessible market for real estate tokenization.
Further enriching the ecosystem, Landshare plans to propose an LSRWA-USD liquidity pool, akin to the successful LAND-BNB LP, to incentivize LSRWA holders with rewards for contributing to liquidity. This initiative not only aims to elevate LSRWA's utility but also to broaden the trader base, mitigate price volatility, and ensure a more stable and liquid market environment.
The Path Forward: Innovation and Opportunities
The tokenization of real estate assets paves the way for innovative investment models and financing mechanisms, from crowdfunded investments to yield-generating real estate funds. These developments promise to enrich the investment landscape and provide property owners and developers with novel avenues for funding and growth.
The listing of LSRWA Tokens on the DS Swap Security Token DEX represents a pivotal moment for Landshare, a huge change in on-chain real estate trading. Enabling instant settlements, zero transaction fees, and versatile trading against LAND or stablecoin pairs, this step will bring unprecedented liquidity in the space. It amplifies trading dynamics with zero-fee liquidity pools, arbitrage opportunities, and higher trading limits, marking a significant step towards solving liquidity issues and enhancing the accessibility of real estate tokenization.
RWA tokens' on-chain secondary market trading sets the stage for a more liquid, inclusive, and dynamic real estate market. By leveraging the power of blockchain technology, the real estate sector is poised for a transformation that promises to redefine the essence of property investment, making it more accessible, efficient, and attractive to a global audience of investors.
The future of real estate investment is not just about owning property; it's about being part of a revolutionary movement toward a more democratized financial ecosystem.
Landshare Team
The world is moving fast and every now and then we see disruption in traditional industries by emerging technologies. Blockchain is undoubtedly a state-of-the-art technology which is changing the landscape across the industries. It keeps changing the fundamental operations and bringing better and efficient solutions. Tokenization of Real World Assets (RWAs) is possible due to blockchain technology and is on the way to becoming a trillion dollar industry.
The RWAs could include a wide range of assets from the tangible financial or traditional physical world including real estate, commodities, artifacts, or even the digital tokens, the list goes on for real world assets. Although we are witnessing that the tokenization sector is on boom and spreading across different sectors, it is making a notable difference in real estate. A significant number of projects have surfaced in recent years that focus on tokenization of the real estate sector.
Industry experts have recognized tokenization as an enterprise blockchain solution with huge potential in the future. Co-founder of crypto exchange Coinbase Fred Ehsram quotes that “Everything will be tokenized and connected by a blockchain one day.”
Tokenization is a process of representing the value of real world assets on blockchain. When an asset is represented as a digital token that can be exchanged and kept on a blockchain, this process is known as tokenization. We do not need middlemen, while secure and transparent record-keeping is made possible by distributed ledger technology, or blockchain.
Real World Assets (RWAs) includes tangible assets such as real estate properties and art pieces, financial instruments such as commodities, bonds, and equities and intangible assets intellectual property, data and identity.
Data suggests that RWA tokenization emerged as a fast-paced segment across the DeFi space. According to DefiLlama, in December 2023, the RWA tokenization was sitting on total value locked (TVL) of around $5 Billion.
Increased liquidity, fractional ownership, and easier transferability are just a few advantages that blockchain-based tokenization offers over conventional asset ownership and trade. Tokenized assets can be exchanged anywhere in the world, at any time, and without middlemen, which lowers expenses and expands the pool of possible investments.
Though tokenization is a typical procedure with technological aspects, still here we try to give a simple explanation. The tokenization process begins with determining the best method to digitize the chosen asset, which varies based on the asset's nature, such as a money market fund versus a carbon credit, and its classification as either a security or a commodity under relevant laws.
Next, if the asset has a tangible form, it is secured in a mutually agreed-upon location. Following this, a token representing the asset is created on a blockchain, with necessary compliance measures in place. This digital asset is then ready for distribution, requiring investors to use a digital wallet for storage and possibly trade on a secondary market with less stringent regulations.
Post-distribution, the asset undergoes continuous management, including compliance with legal and financial reporting, to ensure its integrity and value are maintained.
RWA Tokenization is taking the world by storm and there are a number of reasons behind it in the form of benefits and offerings. It solves many inherent issues across the sectors along with bringing new age solutions. The solutions not only saves cost and efforts but end up making the traditional procedure more efficient and easy. Let’s talk about the advantages of RWA tokenization in depth.
Accelerated Settlements Through Constant Availability: Traditional financial settlements typically take up to few business days to complete, allowing time for all parties to prepare necessary documents and funds. Tokenization enables immediate settlements, offering potential savings, especially in environments with high interest rates, by facilitating round-the-clock transactions.
Reduction in Operational Expenses with Programmable Assets: Tokenization brings significant cost reductions in asset management, particularly for assets that traditionally require extensive manual intervention, like corporate bonds. By integrating functions such as interest computation and payment distributions into a token’s smart contract, these processes become automated, minimizing the need for manual oversight.
Opening Investment Opportunities to a Wider Audience: The efficiency gained from automating complex and labor-intensive processes makes it financially viable to serve a broader range of investors, including those with smaller capital. However, for this democratization to fully materialize, the distribution of tokenized assets must expand substantially.
Boosted Transparency Through Smart Contracts: The deployment of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, enhances the transparency of transactions. For instance, in the case of tokenized carbon credits, the blockchain can maintain a clear, unchangeable record of the credits' ownership and transactions.
More Flexible and Cost-effective Infrastructure: Leveraging blockchain technology, which is open source by nature, results in a more adaptable and less expensive infrastructure compared to traditional financial systems. This aspect of blockchain facilitates quicker adjustments to meet evolving regulations or operational demands.
The landscape of RWA tokenization, or digitizing tangible assets through blockchain, is at a foundational stage with a promising outlook. As the underlying blockchain technology evolves and legal frameworks become more defined, this area is poised for notable expansion. RWA tokenization issuance is forecasted to reach $4 to $5 trillion by 2030.
Here's a snapshot of emerging trends in the realm of RWA tokenization:
Wider Acceptance: Anticipate a surge in the embrace of this innovation across diverse industries. Companies leveraging this approach stand to gain by making assets more liquid, slashing operational expenses, and widening the pool of potential investors.
Legal Frameworks Gaining Shape: The growth trajectory of RWA tokenization hinges on clear legal guidelines. Authorities are progressively understanding the value of these digital assets and are crafting laws to safeguard investors while promoting creative advancements.
Cross-Platform Exchangeability: The fluid exchange of tokenized assets among various blockchains and platforms is essential for the sector's vitality. Efforts are underway to establish norms and protocols that enable such seamless transfers, aiming to boost market liquidity and effectiveness.
Security Enhancements: With the rise in the value of digital assets, enforcing stringent security protocols is becoming increasingly crucial. Cutting-edge solutions, including decentralized verification and layered authentication measures, are being developed to fortify the safety of these assets.
DeFi Convergence: The intersection of RWA tokenization with the burgeoning sector of DeFi heralds the creation of innovative financial mechanisms. This amalgamation is set to offer unprecedented opportunities for decentralized financial activities, from lending and borrowing to generating passive income.
These evolving dynamics suggest a transformative phase for the tokenization of real assets, promising to redefine the contours of asset management and investment through increased accessibility, security, and market fluidity.
There are a number of industries that saw a significant interest in tokenization of assets. The real estate sector has swiftly acknowledged the advantages offered by tokenizing. Transforming tangible real estate into digital tokens enhances trading efficiency and liquidity. This innovation provides investors with fresh opportunities, reduces entry obstacles, and enables partial ownership of premium properties.
In addition to real estate, tokenization is transforming investment in art, collectibles, private equity, commodities, and venture capital. It democratizes access to high-value art and collectibles by allowing fractional ownership through digital tokens, enhancing portfolio diversification.
In private equity, it streamlines capital raising and increases asset liquidity, making it easier for investors to trade shares in private companies. For commodities like gold and oil, tokenization offers a simplified trading mechanism, bypassing the need for physical handling. In venture capital, tokenizing startup equity facilitates capital raising and provides early-stage investors with liquidity, allowing them to realize returns without waiting for traditional exit events.
Avalanche is emerging as a key player in the RWA tokenization space, attracting major banks like JP Morgan, Citi, and Bank of America. These institutions are leveraging Avalanche's technology and Subnets to develop blockchain solutions for tokenizing funds, facilitating forex trades, and exploring broader asset tokenization opportunities.
Chainlink plays a crucial role in the tokenization of real-world assets, offering transparency, cost-effectiveness, and accessibility in financial transactions. Research by K33 highlights Chainlink's LINK as a secure choice for investors interested in RWAs' tokenization. Chainlink's platform enables the enrichment of RWAs with real-world data, secure cross-chain transfers, and connection to off-chain data, making it a key player in this emerging landscape.
The real estate sector market is one of the fastest growing industries worldwide. Statista report states that in 2021, the global real estate market size stood at $585 Trillion. It is expected to be a staggering $729.4 Trillion in 2028 with a CAGR of 3.4%.
Given the sheer size of the industry, tokenization of real estate has a huge potential in the near future. There are several projects already active in the space leading the way for the industry. We at Landshare intend to unlock the vast prospect of real estate for the masses.
Landshare stands out in the real estate tokenization sphere through its innovative and reliable unique selling points. Our ability to successfully sell three properties via the Binance Smart Chain (BSC) highlights our operational proficiency and the market's endorsement of our approach.
The introduction of our Real World Asset (RWA) token, Landshare RWA ($LSRWA), opens up new opportunities for investors aiming for diversification and passive income. This token allows investors to access a selection of properties. Our platform's functionality and transactions are significantly supported by our native utility token, $LAND.
Beyond the fundamental benefits of tokenized real estate, we offer additional perks that enhance its appeal. Holding $LAND enables us to offer investors returns over 12%, while participating in $LAND-$BNB LP stake can yield rewards as high as 66%. Landshare's commitment to innovation, security, and profitability continues to propel us forward in the tokenized real estate market.
Real estate tokenization transforms property investment and management through several key benefits:
Enhanced Liquidity: Tokenizing real estate allows for the fractional buying and selling of property interests, significantly increasing market liquidity. This process enables smaller investments and makes it easier for owners to sell parts of their assets quickly, offering flexibility previously unseen in the traditional real estate market.
Accessible Fractional Ownership and Diverse Portfolio Opportunities: Democratization of real estate investment becomes possible by lowering entry barriers and enabling portfolio diversification across various properties and locations, thus reducing risk and potentially enhancing returns for a broader investor base.
Participation in Global Real Estate: Tokenization erases geographical boundaries, enabling global investment in local real estate markets. This not only broadens the investor base but also injects foreign capital into markets, potentially stabilizing property values and encouraging economic diversity.
Efficiency, Transparency and Low Transaction Fees: Tokenization enhances transaction efficiency, reduces costs, and speeds up processes by eliminating traditional bottlenecks and paperwork. It ensures transparency, recording every transaction to minimize fraud risks, thereby building investor trust. Additionally, it cuts down on intermediary fees, making investments more accessible and profitable.
Simplified Asset Management: Digital tokens simplify the management of real estate assets, from leasing to maintenance and sales. This efficiency reduces administrative burdens and costs, potentially increasing the profitability of real estate investments.
These advancements collectively represent a significant shift in how real estate is viewed, traded, and managed, offering unprecedented opportunities for investors and transforming the real estate landscape into a more inclusive, efficient, and secure market.
The tokenization of Real World Assets (RWAs) represents a groundbreaking shift in how we view and manage assets across various industries. With its roots deeply entrenched in blockchain technology, tokenization is paving the way for a more efficient, transparent, and accessible market. The real estate sector, in particular, has seen a remarkable transformation through tokenization, offering benefits like increased liquidity, fractional ownership, and global participation. As we look towards the future, the potential for tokenization extends far beyond real estate, touching every corner of the investment world from art and commodities to intellectual property.
Landshare's initiative in real estate tokenization exemplifies the practical application and immense potential of this innovation, demonstrating how traditional barriers can be dismantled to unlock new investment opportunities. With the global real estate market poised for significant growth, the role of tokenization will undoubtedly expand, bringing with it a host of advancements in how we buy, sell, and manage assets. As industry leaders and pioneers continue to explore and invest in tokenization, the landscape of asset management is set for a revolution, making investment more democratic, secure, and efficient for all.
Landshare Team
Inflation is an economic phenomenon that shows the rate of increase in prices over some time. Typically, inflation is a broad measure, including the overall price increase or the cost of living in a country. It affects the purchasing power and could be severe across countries. In general, inflation is considered to eat away savings over time and, in most cases, even the profits of your investments.
Since inflation could be fatal enough to diminish your profits, picking and choosing the assets that can give it a tough battle becomes crucial. And bear in mind that it should also beat it. In the long history of investments, real estate investments have proven their worth regardless of how bad the odds were. Experts have always believed that real estate is a hedge against inflation. An advent of tokenized real estate is also taking place in mainstream discussions.
In today's fluctuating economic landscape, safeguarding your investment portfolio against inflation is more crucial than ever. As inflation erodes purchasing power and diminishes the actual value of money, experts frequently turn to real estate as a robust shield against these forces. This blog delves into why real estate is a bulwark against inflation, particularly its tokenized form.
The increase in prices of commodities, assets, or anything that can be purchased is inflation. The purchasing power of a currency decreases due to increasing inflation. For instance, consider the inflation rate in the United States at 3%. If you buy a toothbrush for $20 today, you would buy it for $20.6 the next year and $21.2 the following year.
What should a 60 cents or $1.2 increase affect? The difference may not seem significant, but inflation is a burning issue since it burns purchasing power and, ideally, sitting savings.
There are multiple factors to measure inflation in any given region or country. In the United States, there's the Consumer Price Index (CPI) that measures inflation. To gauge inflation, changes in commodity prices are tracked, and how much a customer pays for a basket of certain consumer goods is observed. Not all products or commodities see a price increase; some get cheaper, too. The mean cost of all the commodities brought us the inflation rate.
Inflation affects investments in general to a large extent. Since the purchasing power decreases with soaring inflation, people prefer to pay for the basic requirements at present over making investments to generate profits in the foreseeable future. Now that the investments are less, the profit is even smaller, triggering a vicious cycle.
According to Goldman Sachs, "inflation can be a friend to real estate." This is true because the construction cost rises with increasing inflation, resulting in the appreciation of property prices. 2023 was uncertain where the world was moving towards inflation while the governments across countries worked to curb the rising prices, and a looming recession was on the other side.
Macroeconomics evolved frequently during those times, and it became necessary for investors to keep their portfolios stable with some stable investment vehicle, such as real estate. Historically, the real estate market has proven its worth when weathering softer economic situations.
The real estate market mostly runs ahead of inflation or at least follows it to a large extent, depending on the region. Construction cost is among the reasons behind appreciation in the real estate market. At the same time, demand and supply are crucial factors in deciding the price, as they do for every other product or service in the market.
Within the diverse array of investment options available today, including stocks, physical gold, gold ETFs, commodities, and floating-rate bonds, each presents its own set of advantages and drawbacks when it comes to hedging against inflation. However, real estate stands out as a historically reliable safeguard against inflation.
Global data since 1980 shows that commercial real estate has surpassed other investment classes in six out of seven inflationary cycles, showcasing its resilience in preserving value and performance amidst inflationary pressures. Inflation leads to a significant rise in the costs associated with constructing new properties, elevating the importance and value of existing properties. This scenario enhances the potential for increased rental income and improved liquidity from a real estate investment standpoint.
Now that you are convinced that real estate investments win over inflation, let’s talk about the changing landscape of real estate investments. The industry is witnessing a paradigm shift due to technological advancements. Tokenization is the process of bringing tangible real world assets (RWA) to blockchain technology. These assets include tangible financial investments such as commodities, currencies, and real estate.
The real estate sector is moving towards tokenization with higher speed. The market size of tokenized assets can hit $10 Trillion by 2030, whereas the real estate tokenization market could swell to over $18 Billion by the end of this decade. Tokenized real estate investments make traditional investment methods better and more efficient. Entering the real estate sector becomes less complicated, needs less or no paperwork, and comes with better transparency and liquidity.
A huge number of projects emerged in the past few years, such as Landshare, Centrifuge, Maple, Pendle, and several others. These projects are involved in tokenization of RWAs.
Tokenized real estate brings more advantages than existing benefits of real estate investments. Tokenization of real estate makes fractional ownership of property possible. It lowers the threshold, making it feasible for many investors to foray into the real estate landscape. The investor base increases significantly, and more investors bring more liquidity.
Landshare is highly active in the tokenized real estate sector selling three properties on the Binance Smart Chain (BSC). The native Landshare RWA (LSRWA) token facilitates a pool of properties for users to invest in real estate. Other similar projects are holding the baton of tokenized real estate and making a mark.
Real estate's tangible nature and the advent of tokenization have solidified its position as an unbeatable hedge against inflation. By offering tangible assets that appreciate over time, coupled with the innovative tokenization approach, real estate stands as a fortress for investors seeking to protect their portfolios from inflation's erosive effects.
As we move forward, the fusion of traditional real estate investment with blockchain technology promises to redefine the landscape of inflation-resistant investments. Tokenized real estate, with its unique blend of accessibility, efficiency, and scalability, is at the forefront of this evolution. It offers a promising avenue for investors aiming to weather the storm of inflation.
By
Landshare Team
The advent of blockchain technology heralds a seismic shift in the real estate sector, promising unparalleled liquidity and accessibility through tokenizing real-world assets (RWAs). Traditionally we have seen the real estate sector as an illiquid asset class with high entry barriers but now it is reimagined by integrating on-chain secondary market trading of RWA tokens.
According to CoinMarketCap, the market cap of real-world asset (RWA) tokens stands above $53.7 Billion. This substantial market cap shows us that the RWA sector in the crypto market is proliferating. The high pace of growth ensures that it will soon overlay a notable portion of the traditional real estate market.
We can see how the RWA narrative has taken crypto space by the storm, and it has made a massive leap in the financial landscape. It is making tangible financial assets such as real estate investments more fluid, transparent, and accessible to a broader spectrum of investors. The amalgamation of RWA tokens with secondary market trading brings unprecedented advantages for you in the highly lucrative real estate investment sector.
We can understand secondary market trading as trading of assets among buyers and sellers rather than with the companies or projects. A budding project in the crypto space launches a token through either an ICO, IEO, or IDO, which primarily trades native tokens in exchange of raising funds from investors. After the launch, when these tokens are up for trade among traders, it becomes a secondary market, and the trading becomes secondary market trading.
NYSE and NASDAQ are, for instance, secondary market trading platforms, as they offer you to trade or invest in stocks. On the same note, trading on both centralized and decentralized crypto exchanges falls within secondary market trading. We can trade Bitcoin on crypto exchanges such as Coinbase or buy or sell Ethereum on decentralized exchanges like Uniswap.
Real-world assets (RWAs) refer to objects possessing tangible or intangible value, including but not limited to gold, fine art, and real estate. In 2024, the scope of these assets linked to the real world is set to broaden beyond the confines of physical space. The advancement of blockchain technology makes the expansion possessive, providing a unique on-chain identity to traditional assets. This innovation creates a novel concept known as the real-world asset token.
The global real estate market is over $630 Trillion today and is continually growing. It is expected to hit $729 Trillion by 2028. This also makes real estate investments one of the most lucrative investment vehicles due to huge returns, but they do come with their own shares of hassle.
The real estate market is illiquid, and even a single transaction of buying or selling a property could take weeks or even months. In addition, it takes time to complete the extensive paperwork required for a transaction, making the whole process inefficient.
With the introduction of real estate-backed RWA tokens, real estate property transactions can now be carried out faster, more transparently, and more efficiently. There's more to the phenomenon than just that; let's delve into the benefits of trading RWA tokens in secondary markets.
As mentioned above, the RWA crypto tokens already have a market cap of billions of dollars. Several projects are spearheading change within the space with unique propositions and offerings.
Landshare ($LAND) is among the rare projects that offer real estate-backed RWA tokens: Landshare RWA ($LSRWA). $LAND is the native utility and governance token that takes care of transactions and other operations over the platform.
The RWA token represents the unit of the pool of real estate properties 1:1. Landshare makes it possible for you to step into tokenized real estate investments with as low as $1. Landshare RWA tokens are playing a crucial role in changing the real estate investment landscape with unique propositions and offerings.
Landshare is actively tackling the challenge of the lack of secondary trading options for most security tokens with a comprehensive three-pronged approach. The strategy includes on-chain valuations, ensuring transparency with up-to-date property valuations and cash reserves; fixed price liquidity, maintaining token value alignment with the underlying assets through controlled sales; and DEX Trading, aiming to foster a vibrant secondary market for LSRWA tokens by enabling unrestricted trading.
The upcoming listing of LSRWA Tokens on the DS Swap Security Token DEX is a significant milestone in this endeavor for Landshare. The on-chain real estate trading by offering instant settlements, no transaction fees, and the flexibility to trade against LAND or stablecoin pairs will be possible and it's a paradigm shift in making.
The introduction of the DS Swap listing is expected to amplify trading dynamics by providing zero-fee liquidity pools, facilitating arbitrage opportunities, and allowing for higher trading limits. Landshare takes a leap in resolving the liquidity issues with the DS Swap Security Token DEX listing, promising a more fluid and accessible market for real estate tokenization.
Further enriching the ecosystem, Landshare plans to propose an LSRWA-USD liquidity pool, akin to the successful LAND-BNB LP, to incentivize LSRWA holders with rewards for contributing to liquidity. This initiative not only aims to elevate LSRWA's utility but also to broaden the trader base, mitigate price volatility, and ensure a more stable and liquid market environment.
The Path Forward: Innovation and Opportunities
The tokenization of real estate assets paves the way for innovative investment models and financing mechanisms, from crowdfunded investments to yield-generating real estate funds. These developments promise to enrich the investment landscape and provide property owners and developers with novel avenues for funding and growth.
The listing of LSRWA Tokens on the DS Swap Security Token DEX represents a pivotal moment for Landshare, a huge change in on-chain real estate trading. Enabling instant settlements, zero transaction fees, and versatile trading against LAND or stablecoin pairs, this step will bring unprecedented liquidity in the space. It amplifies trading dynamics with zero-fee liquidity pools, arbitrage opportunities, and higher trading limits, marking a significant step towards solving liquidity issues and enhancing the accessibility of real estate tokenization.
RWA tokens' on-chain secondary market trading sets the stage for a more liquid, inclusive, and dynamic real estate market. By leveraging the power of blockchain technology, the real estate sector is poised for a transformation that promises to redefine the essence of property investment, making it more accessible, efficient, and attractive to a global audience of investors.
The future of real estate investment is not just about owning property; it's about being part of a revolutionary movement toward a more democratized financial ecosystem.
By
Landshare Team
The world is moving fast and every now and then we see disruption in traditional industries by emerging technologies. Blockchain is undoubtedly a state-of-the-art technology which is changing the landscape across the industries. It keeps changing the fundamental operations and bringing better and efficient solutions. Tokenization of Real World Assets (RWAs) is possible due to blockchain technology and is on the way to becoming a trillion dollar industry.
The RWAs could include a wide range of assets from the tangible financial or traditional physical world including real estate, commodities, artifacts, or even the digital tokens, the list goes on for real world assets. Although we are witnessing that the tokenization sector is on boom and spreading across different sectors, it is making a notable difference in real estate. A significant number of projects have surfaced in recent years that focus on tokenization of the real estate sector.
Industry experts have recognized tokenization as an enterprise blockchain solution with huge potential in the future. Co-founder of crypto exchange Coinbase Fred Ehsram quotes that “Everything will be tokenized and connected by a blockchain one day.”
Tokenization is a process of representing the value of real world assets on blockchain. When an asset is represented as a digital token that can be exchanged and kept on a blockchain, this process is known as tokenization. We do not need middlemen, while secure and transparent record-keeping is made possible by distributed ledger technology, or blockchain.
Real World Assets (RWAs) includes tangible assets such as real estate properties and art pieces, financial instruments such as commodities, bonds, and equities and intangible assets intellectual property, data and identity.
Data suggests that RWA tokenization emerged as a fast-paced segment across the DeFi space. According to DefiLlama, in December 2023, the RWA tokenization was sitting on total value locked (TVL) of around $5 Billion.
Increased liquidity, fractional ownership, and easier transferability are just a few advantages that blockchain-based tokenization offers over conventional asset ownership and trade. Tokenized assets can be exchanged anywhere in the world, at any time, and without middlemen, which lowers expenses and expands the pool of possible investments.
Though tokenization is a typical procedure with technological aspects, still here we try to give a simple explanation. The tokenization process begins with determining the best method to digitize the chosen asset, which varies based on the asset's nature, such as a money market fund versus a carbon credit, and its classification as either a security or a commodity under relevant laws.
Next, if the asset has a tangible form, it is secured in a mutually agreed-upon location. Following this, a token representing the asset is created on a blockchain, with necessary compliance measures in place. This digital asset is then ready for distribution, requiring investors to use a digital wallet for storage and possibly trade on a secondary market with less stringent regulations.
Post-distribution, the asset undergoes continuous management, including compliance with legal and financial reporting, to ensure its integrity and value are maintained.
RWA Tokenization is taking the world by storm and there are a number of reasons behind it in the form of benefits and offerings. It solves many inherent issues across the sectors along with bringing new age solutions. The solutions not only saves cost and efforts but end up making the traditional procedure more efficient and easy. Let’s talk about the advantages of RWA tokenization in depth.
Accelerated Settlements Through Constant Availability: Traditional financial settlements typically take up to few business days to complete, allowing time for all parties to prepare necessary documents and funds. Tokenization enables immediate settlements, offering potential savings, especially in environments with high interest rates, by facilitating round-the-clock transactions.
Reduction in Operational Expenses with Programmable Assets: Tokenization brings significant cost reductions in asset management, particularly for assets that traditionally require extensive manual intervention, like corporate bonds. By integrating functions such as interest computation and payment distributions into a token’s smart contract, these processes become automated, minimizing the need for manual oversight.
Opening Investment Opportunities to a Wider Audience: The efficiency gained from automating complex and labor-intensive processes makes it financially viable to serve a broader range of investors, including those with smaller capital. However, for this democratization to fully materialize, the distribution of tokenized assets must expand substantially.
Boosted Transparency Through Smart Contracts: The deployment of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, enhances the transparency of transactions. For instance, in the case of tokenized carbon credits, the blockchain can maintain a clear, unchangeable record of the credits' ownership and transactions.
More Flexible and Cost-effective Infrastructure: Leveraging blockchain technology, which is open source by nature, results in a more adaptable and less expensive infrastructure compared to traditional financial systems. This aspect of blockchain facilitates quicker adjustments to meet evolving regulations or operational demands.
The landscape of RWA tokenization, or digitizing tangible assets through blockchain, is at a foundational stage with a promising outlook. As the underlying blockchain technology evolves and legal frameworks become more defined, this area is poised for notable expansion. RWA tokenization issuance is forecasted to reach $4 to $5 trillion by 2030.
Here's a snapshot of emerging trends in the realm of RWA tokenization:
Wider Acceptance: Anticipate a surge in the embrace of this innovation across diverse industries. Companies leveraging this approach stand to gain by making assets more liquid, slashing operational expenses, and widening the pool of potential investors.
Legal Frameworks Gaining Shape: The growth trajectory of RWA tokenization hinges on clear legal guidelines. Authorities are progressively understanding the value of these digital assets and are crafting laws to safeguard investors while promoting creative advancements.
Cross-Platform Exchangeability: The fluid exchange of tokenized assets among various blockchains and platforms is essential for the sector's vitality. Efforts are underway to establish norms and protocols that enable such seamless transfers, aiming to boost market liquidity and effectiveness.
Security Enhancements: With the rise in the value of digital assets, enforcing stringent security protocols is becoming increasingly crucial. Cutting-edge solutions, including decentralized verification and layered authentication measures, are being developed to fortify the safety of these assets.
DeFi Convergence: The intersection of RWA tokenization with the burgeoning sector of DeFi heralds the creation of innovative financial mechanisms. This amalgamation is set to offer unprecedented opportunities for decentralized financial activities, from lending and borrowing to generating passive income.
These evolving dynamics suggest a transformative phase for the tokenization of real assets, promising to redefine the contours of asset management and investment through increased accessibility, security, and market fluidity.
There are a number of industries that saw a significant interest in tokenization of assets. The real estate sector has swiftly acknowledged the advantages offered by tokenizing. Transforming tangible real estate into digital tokens enhances trading efficiency and liquidity. This innovation provides investors with fresh opportunities, reduces entry obstacles, and enables partial ownership of premium properties.
In addition to real estate, tokenization is transforming investment in art, collectibles, private equity, commodities, and venture capital. It democratizes access to high-value art and collectibles by allowing fractional ownership through digital tokens, enhancing portfolio diversification.
In private equity, it streamlines capital raising and increases asset liquidity, making it easier for investors to trade shares in private companies. For commodities like gold and oil, tokenization offers a simplified trading mechanism, bypassing the need for physical handling. In venture capital, tokenizing startup equity facilitates capital raising and provides early-stage investors with liquidity, allowing them to realize returns without waiting for traditional exit events.
Avalanche is emerging as a key player in the RWA tokenization space, attracting major banks like JP Morgan, Citi, and Bank of America. These institutions are leveraging Avalanche's technology and Subnets to develop blockchain solutions for tokenizing funds, facilitating forex trades, and exploring broader asset tokenization opportunities.
Chainlink plays a crucial role in the tokenization of real-world assets, offering transparency, cost-effectiveness, and accessibility in financial transactions. Research by K33 highlights Chainlink's LINK as a secure choice for investors interested in RWAs' tokenization. Chainlink's platform enables the enrichment of RWAs with real-world data, secure cross-chain transfers, and connection to off-chain data, making it a key player in this emerging landscape.
The real estate sector market is one of the fastest growing industries worldwide. Statista report states that in 2021, the global real estate market size stood at $585 Trillion. It is expected to be a staggering $729.4 Trillion in 2028 with a CAGR of 3.4%.
Given the sheer size of the industry, tokenization of real estate has a huge potential in the near future. There are several projects already active in the space leading the way for the industry. We at Landshare intend to unlock the vast prospect of real estate for the masses.
Landshare stands out in the real estate tokenization sphere through its innovative and reliable unique selling points. Our ability to successfully sell three properties via the Binance Smart Chain (BSC) highlights our operational proficiency and the market's endorsement of our approach.
The introduction of our Real World Asset (RWA) token, Landshare RWA ($LSRWA), opens up new opportunities for investors aiming for diversification and passive income. This token allows investors to access a selection of properties. Our platform's functionality and transactions are significantly supported by our native utility token, $LAND.
Beyond the fundamental benefits of tokenized real estate, we offer additional perks that enhance its appeal. Holding $LAND enables us to offer investors returns over 12%, while participating in $LAND-$BNB LP stake can yield rewards as high as 66%. Landshare's commitment to innovation, security, and profitability continues to propel us forward in the tokenized real estate market.
Real estate tokenization transforms property investment and management through several key benefits:
Enhanced Liquidity: Tokenizing real estate allows for the fractional buying and selling of property interests, significantly increasing market liquidity. This process enables smaller investments and makes it easier for owners to sell parts of their assets quickly, offering flexibility previously unseen in the traditional real estate market.
Accessible Fractional Ownership and Diverse Portfolio Opportunities: Democratization of real estate investment becomes possible by lowering entry barriers and enabling portfolio diversification across various properties and locations, thus reducing risk and potentially enhancing returns for a broader investor base.
Participation in Global Real Estate: Tokenization erases geographical boundaries, enabling global investment in local real estate markets. This not only broadens the investor base but also injects foreign capital into markets, potentially stabilizing property values and encouraging economic diversity.
Efficiency, Transparency and Low Transaction Fees: Tokenization enhances transaction efficiency, reduces costs, and speeds up processes by eliminating traditional bottlenecks and paperwork. It ensures transparency, recording every transaction to minimize fraud risks, thereby building investor trust. Additionally, it cuts down on intermediary fees, making investments more accessible and profitable.
Simplified Asset Management: Digital tokens simplify the management of real estate assets, from leasing to maintenance and sales. This efficiency reduces administrative burdens and costs, potentially increasing the profitability of real estate investments.
These advancements collectively represent a significant shift in how real estate is viewed, traded, and managed, offering unprecedented opportunities for investors and transforming the real estate landscape into a more inclusive, efficient, and secure market.
The tokenization of Real World Assets (RWAs) represents a groundbreaking shift in how we view and manage assets across various industries. With its roots deeply entrenched in blockchain technology, tokenization is paving the way for a more efficient, transparent, and accessible market. The real estate sector, in particular, has seen a remarkable transformation through tokenization, offering benefits like increased liquidity, fractional ownership, and global participation. As we look towards the future, the potential for tokenization extends far beyond real estate, touching every corner of the investment world from art and commodities to intellectual property.
Landshare's initiative in real estate tokenization exemplifies the practical application and immense potential of this innovation, demonstrating how traditional barriers can be dismantled to unlock new investment opportunities. With the global real estate market poised for significant growth, the role of tokenization will undoubtedly expand, bringing with it a host of advancements in how we buy, sell, and manage assets. As industry leaders and pioneers continue to explore and invest in tokenization, the landscape of asset management is set for a revolution, making investment more democratic, secure, and efficient for all.
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By
Landshare Team
Inflation is an economic phenomenon that shows the rate of increase in prices over some time. Typically, inflation is a broad measure, including the overall price increase or the cost of living in a country. It affects the purchasing power and could be severe across countries. In general, inflation is considered to eat away savings over time and, in most cases, even the profits of your investments.
Since inflation could be fatal enough to diminish your profits, picking and choosing the assets that can give it a tough battle becomes crucial. And bear in mind that it should also beat it. In the long history of investments, real estate investments have proven their worth regardless of how bad the odds were. Experts have always believed that real estate is a hedge against inflation. An advent of tokenized real estate is also taking place in mainstream discussions.
In today's fluctuating economic landscape, safeguarding your investment portfolio against inflation is more crucial than ever. As inflation erodes purchasing power and diminishes the actual value of money, experts frequently turn to real estate as a robust shield against these forces. This blog delves into why real estate is a bulwark against inflation, particularly its tokenized form.
The increase in prices of commodities, assets, or anything that can be purchased is inflation. The purchasing power of a currency decreases due to increasing inflation. For instance, consider the inflation rate in the United States at 3%. If you buy a toothbrush for $20 today, you would buy it for $20.6 the next year and $21.2 the following year.
What should a 60 cents or $1.2 increase affect? The difference may not seem significant, but inflation is a burning issue since it burns purchasing power and, ideally, sitting savings.
There are multiple factors to measure inflation in any given region or country. In the United States, there's the Consumer Price Index (CPI) that measures inflation. To gauge inflation, changes in commodity prices are tracked, and how much a customer pays for a basket of certain consumer goods is observed. Not all products or commodities see a price increase; some get cheaper, too. The mean cost of all the commodities brought us the inflation rate.
Inflation affects investments in general to a large extent. Since the purchasing power decreases with soaring inflation, people prefer to pay for the basic requirements at present over making investments to generate profits in the foreseeable future. Now that the investments are less, the profit is even smaller, triggering a vicious cycle.
According to Goldman Sachs, "inflation can be a friend to real estate." This is true because the construction cost rises with increasing inflation, resulting in the appreciation of property prices. 2023 was uncertain where the world was moving towards inflation while the governments across countries worked to curb the rising prices, and a looming recession was on the other side.
Macroeconomics evolved frequently during those times, and it became necessary for investors to keep their portfolios stable with some stable investment vehicle, such as real estate. Historically, the real estate market has proven its worth when weathering softer economic situations.
The real estate market mostly runs ahead of inflation or at least follows it to a large extent, depending on the region. Construction cost is among the reasons behind appreciation in the real estate market. At the same time, demand and supply are crucial factors in deciding the price, as they do for every other product or service in the market.
Within the diverse array of investment options available today, including stocks, physical gold, gold ETFs, commodities, and floating-rate bonds, each presents its own set of advantages and drawbacks when it comes to hedging against inflation. However, real estate stands out as a historically reliable safeguard against inflation.
Global data since 1980 shows that commercial real estate has surpassed other investment classes in six out of seven inflationary cycles, showcasing its resilience in preserving value and performance amidst inflationary pressures. Inflation leads to a significant rise in the costs associated with constructing new properties, elevating the importance and value of existing properties. This scenario enhances the potential for increased rental income and improved liquidity from a real estate investment standpoint.
Now that you are convinced that real estate investments win over inflation, let’s talk about the changing landscape of real estate investments. The industry is witnessing a paradigm shift due to technological advancements. Tokenization is the process of bringing tangible real world assets (RWA) to blockchain technology. These assets include tangible financial investments such as commodities, currencies, and real estate.
The real estate sector is moving towards tokenization with higher speed. The market size of tokenized assets can hit $10 Trillion by 2030, whereas the real estate tokenization market could swell to over $18 Billion by the end of this decade. Tokenized real estate investments make traditional investment methods better and more efficient. Entering the real estate sector becomes less complicated, needs less or no paperwork, and comes with better transparency and liquidity.
A huge number of projects emerged in the past few years, such as Landshare, Centrifuge, Maple, Pendle, and several others. These projects are involved in tokenization of RWAs.
Tokenized real estate brings more advantages than existing benefits of real estate investments. Tokenization of real estate makes fractional ownership of property possible. It lowers the threshold, making it feasible for many investors to foray into the real estate landscape. The investor base increases significantly, and more investors bring more liquidity.
Landshare is highly active in the tokenized real estate sector selling three properties on the Binance Smart Chain (BSC). The native Landshare RWA (LSRWA) token facilitates a pool of properties for users to invest in real estate. Other similar projects are holding the baton of tokenized real estate and making a mark.
Real estate's tangible nature and the advent of tokenization have solidified its position as an unbeatable hedge against inflation. By offering tangible assets that appreciate over time, coupled with the innovative tokenization approach, real estate stands as a fortress for investors seeking to protect their portfolios from inflation's erosive effects.
As we move forward, the fusion of traditional real estate investment with blockchain technology promises to redefine the landscape of inflation-resistant investments. Tokenized real estate, with its unique blend of accessibility, efficiency, and scalability, is at the forefront of this evolution. It offers a promising avenue for investors aiming to weather the storm of inflation.
This site is operated by Landshare LLC, which is not a registered broker-dealer or investment advisor.
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