How Equity Works

🎯 Technical Mechanics

This guide explains the technical mechanics of how rent payments convert to EQTBLT equity tokens.

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🔄 Process

🔄 The Conversion Process

Flow Diagram

Rent Payment (USDC)
        ↓
RentalAndRebate Contract
        ↓
    ┌───────────────────────────────┐
    │     Split Calculation         │
    │  ─────────────────────────    │
    │  Base rent × equity rate      │
    │  = EQTBLT to mint             │
    └───────────────────────────────┘
        ↓                ↓
    EQTBLT Mint     Treasury
        ↓                ↓
    Your Wallet     DAO Funds

Step-by-Step

Step	What Happens
1️⃣	Payment received — You send rent payment (USDC)
2️⃣	Contract processes — RentalAndRebate handles it
3️⃣	Rate applied — Your equity rate determines split
4️⃣	EQTBLT minted — New tokens created for you
5️⃣	Transfer complete — EQTBLT in your wallet
6️⃣	Funds distributed — Remaining rent to treasury

📊 Rate Calculation

💰 Monthly Example

⏰ Late Payments

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⛓️ Smart Contract Interaction

The RentalAndRebate contract handles all equity calculations automatically.

📜 Contract Code Example

function payRent(uint256 leaseId) external {
    Lease storage lease = leases[leaseId];

    // Calculate amounts
    uint256 equityAmount = (lease.monthlyRent * lease.equityRate) / 10000;
    uint256 treasuryAmount = lease.monthlyRent - equityAmount;

    // Process payment
    paymentToken.transferFrom(msg.sender, address(this), lease.monthlyRent);

    // Mint EQTBLT to member
    eqtbltToken.mint(lease.member, equityAmount);

    // Send rest to treasury
    paymentToken.transfer(treasury, treasuryAmount);
}

Token Minting

EQTBLT is minted (created) at payment time:

Feature	Description
⚡ New tokens created	Each payment
💳 Sent directly	To your wallet
🏦 No pre-existing pool	Tokens don't exist until earned
📈 Supply grows	With equity distribution

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📋 Rate Configuration

📄 Lease Terms

Your lease specifies:

Property	Description
💰 Base monthly rent	Your payment amount
📊 Equity rate	In basis points
📅 Start date	Lease beginning
⏱️ Duration	Lease length

🔄 Rate Changes

📊 Basis Points

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💎 EQTBLT Properties

Key properties of your earned EQTBLT:

Property	Description
⚡ Created at payment	Doesn't exist until earned
💵 1:1 value	1 EQTBLT = $1 equity
🔢 Zero decimals	Whole numbers only
🔒 Soul-bound	Cannot transfer to others

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📈 Annual Accumulation

📊 Monthly

Example: $1,500/month, 10% Rate

Month	Payment	EQTBLT	Cumulative
1	$1,500	150	150
2	$1,500	150	300
3	$1,500	150	450
...	...	...	...
12	$1,500	150	1,800

Annual total: 1,800 EQTBLT ($1,800 equity)

📅 Multi-Year

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🗳️ Governance Power

Your EQTBLT provides voting power using the quadratic formula.

Quadratic Formula

Base Power = √(EQTBLT Balance) × 100

Power Growth

EQTBLT	Base Power	Timeline
100	1,000	~1 month
1,800	4,243	1 year
5,400	7,348	3 years
9,000	9,487	5 years
18,000	13,416	10 years

Quadratic formula rewards participation without concentration. See Governance V2.

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🧳 Portability

🏠 Moving Within

If you move to another Built By property:

Feature	Benefit
💳 Wallet stays	EQTBLT in your wallet
📈 Continues growing	At new property
✅ No transfer needed	Seamless transition

🚪 Leaving

Portability & Transfer

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✅ Verification

💎 Balance

On-chain:

const balance = await eqtbltToken.balanceOf(yourAddress);

In app: Dashboard → My Tokens → EQTBLT

📄 Lease Details

📜 Payment History

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⚠️ Edge Cases

Partial Payments

Policy	Description
❌ Not supported	Full monthly payment required
🚫 Rejected	Partial payments
✅ Required	Pay full to receive EQTBLT

Overpayment

Policy	Description
🔄 Returned	Excess to payer
💎 Calculated	On base rent only
❌ No extra equity	For overpaying

Missed Payments

Policy	Description
❌ No EQTBLT	For missed months
✅ Must pay	To earn equity
💰 Can catch up	With late fees

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🔗 Related Pages

Equity-Building LeasesRent PaymentsEQTBLT TokenRentalAndRebateVoting Power