Lifecycle

The token lifecycle in the case of an operating agreement structure:

  1. The owner of a property goes onto our tokenization platform and inputs all:

    1. property information

    2. personal information

    3. compliance documentation

  2. Once everything is submitted and reviewed, the operating agreement will be sent out to the property owner to be signed

  3. Upon receiving the signed operating agreement, the REX Protocol will allow the property owner to mint the IRETs representing the property directly to the property owner's wallet

  4. The property owner will then be able to submit a listing of their IRETs on the REX Marketplace for their initial sale, where the REX Protocol DAO will review it for quality and vote to include it.*

  5. Once the IRETs have reached a minimum sales or time threshold on the Marketplace, they will be available to trade on the REX Exchange

  6. IRETs are freely traded on the exchange as long as the property owner holds title to the property

  7. When the property owner decides that he wants to sell his property in the traditional real estate markets (e.g. through a real estate agent to somebody who would like to take possession of the asset), he brings the offer he would like to accept to the REX Protocol and one of two things can happen:

    1. The REX Protocol DAO decides that the offer is at fair market value or above and allows the sale to go through

    2. The REX Protocol DAO decides that the offer is too low and decides to exercise its option to buy with the same terms under the right of first refusal - if this is the case, new tokens are redistributed to the current token holders (minus the seller) in the same equitable proportion and those tokens can then be traded on the exchange

  8. If the REX Protocol DAO allows the sale to go through, the funds from the sale are then distributed in an equitable manner to the IRET holders in exchange for their IRETs which are immediately burned

*The REX Protocol DAO will serve as a quality assurance team that will verify the veracity of the facts stated on the listing. If anything is wrong or misleading they will ask for the listing submission to be edited and resubmitted for it to correctly represent the subject property.

The lifecycle of the IRETs for DAO LLC structures is a slightly more simple process:

  1. A property is put under contract for sale specifying the buyer as an LLC created by REX Protocol in order to buy that property. The sales contract will have a provision that will state that the financing to buy the property will be derived from token sales (and possibly a mortgage)

  2. REX Protocol will conduct all of the necessary due diligence and place an IPO through the marketplace

  3. The IRETs will be sold and directly deposited into the buyer’s wallets and the proceeds will go directly to the escrow company that is handling the sale of the property

  4. Once the funds are raised for the sale of the property, the property sale closes and the IRETs become tradeable on the exchange platform

  5. Should an outside offer to buy the property come in, it will be voted for approval or denial by the DAO of that IRET

  6. If the offer is accepted by the DAO, the buyer of the property will deposit the funds with the escrow agent taking care of the sale of the property, which will then be tokenized and distributed in an equitable manner to the IRET holders in exchange for their IRETs which are immediately burned.

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