Fiat/Monetary Distributions

Because we are dealing with physical properties, tenants, and fiat there will be a process for each different type of distribution of funds.

• IPO - In the case of DAO LLC tokenizations, when the funds are raised via IRET sales on IPO. The funds in the form of USDC are held by an escrow company, converted to fiat (if that is what the seller wants), and released to the seller upon closing. In the case of an operating agreement, the IRET issuer (title holder) will receive USDC directly to their wallets at IPO.

• Rental Income - Rental income will be received by the property managers on a monthly basis from the tenants. The property managers will then deduct the expenses (property taxes, insurance, utilities, and maintenance), and tokenize the proceeds which will be distributed to the IRET holders via our exchange platform.

• Expenses - For income producing properties all expenses will be paid out of an escrow account held by the property managers as mentioned in the property cash reserves section.

• Sale - In a DAO LLC structure, upon sale of the property, the escrow agent will receive the sales proceeds which will then be tokenized and distributed in exchange for the IRETs for that property. In an operating agreement structure, the same holds true, but the title holder has the option of receiving the funds in fiat instead in exchange for their IRETs.