Core Financial Framework
Built By DAO combines innovative real estate strategies with sustainable tokenomics to create a community-driven ecosystem that enables equitable housing, financial growth, and long-term scalability. This model balances utility and equity-building for members, ensuring a sustainable pathway to achieve our ambitious vision of a $1 trillion network valuation.
Assumptions
Membership Revenue: $500,000 (Year 1) from 1,000 members contributing $500 each.
Initial Real Estate Investment: $20,000,000 for acquiring and renovating 10 properties.
Debt Financing: 70% of property value financed at a 6% interest rate.
Number of Properties: 10.
Units per Property: 20 (total of 200 units).
Average Acquisition & Development Cost per Unit: $100,000.
Annual Rent per Unit: $12,000 ($1,000/month).
Annual Property Appreciation Rate: 3%.
Annual Rent Increase: 2%.
Rental Rebate Percentage (Equity Allocation): 10% of net rent.
DAO Reserve Allocation: 5% of net rent.
Annual Maintenance Costs: 2% of property value.
Annual Taxes and Insurance: 1.5% of property value.
Tokenomics
BLTBY Tokens (Utility Token)
Purpose: Facilitate transactions, governance, staking rewards, and access to DAO services.
Total Supply: Fixed (e.g., 1 billion tokens) to ensure long-term scarcity.
Year 1 Issuance: 1% of total supply (10 million tokens).
Annual Issuance Post-Year 1: 1%-2%, adjusted based on network growth metrics.
Primary Uses:
Staking: Members earn rewards for staking tokens to secure the network.
Governance: Members vote on decisions affecting the DAO.
Service Payments: Tokens used to pay for DAO services and access amenities.
EQT Tokens (Equity Token)
Purpose: Represent equity credits accumulated by members through participation, rent contributions, and sweat equity.
Non-Transferable: EQT tokens cannot be traded or sold; they are tied to individual progress toward homeownership.
Earning Mechanism:
10% of net rental income is allocated to members as EQT credits.
Additional EQT earned through contributions (e.g., project participation, sweat equity).
Usage: EQT tokens can be applied as down payments for homes within the DAO network or reinvested into DAO projects if no properties are available.
Revenue and Operating Costs
Year 1 Breakdown
Total Annual Rent: $2,400,000.
Annual Operating Costs:
Debt Service: $840,000.
Maintenance and Repairs: $400,000.
Taxes and Insurance: $300,000.
Total Operating Costs: $1,540,000.
Net Rent (Post-Operating Costs): $860,000.
Equity Allocation to Members: $86,000 (10% of net rent).
DAO Reserve Contribution: $43,000 (5% of net rent).
DAO Treasury Growth: $731,000.
Yearly Growth Projections
Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Total Rent (Net)
$860,000
$877,200
$894,744
$912,639
$930,891
Equity Allocated (10%)
$86,000
$87,720
$89,474
$91,264
$93,089
DAO Reserve Contribution
$43,000
$43,860
$44,737
$45,632
$46,544
Property Value
$20,600,000
$21,218,000
$21,854,540
$22,510,176
$23,185,482
Debt Reduction
$200,000
$210,000
$220,000
$230,000
$240,000
Equity Accumulation for Members
Built By DAO enables renters to accumulate equity credits that can be used toward homeownership within the network. This approach ensures financial empowerment for members while maintaining community stability.
How Equity Accumulation Works
Rent Contributions: A percentage of net rent (10%) is converted into EQT tokens.
Additional Credits: Members can earn EQT through sweat equity or participation in DAO governance and projects.
Homeownership Pathway: EQT tokens are applied as down payments for homes in the DAO network.
Options for Members Without Immediate Property Availability
Extended Participation: Members continue renting and accumulating EQT until a suitable property becomes available.
Reinvestment: EQT tokens can be reinvested in DAO-aligned projects or future properties.
Sale of Properties
In Year 5, a portion of the portfolio (3 properties) is sold to generate liquidity and support DAO growth.
Proceeds from Sale: $6,955,645 (3 properties at $2,318,482 each).
Allocation of Proceeds:
50% to DAO Treasury: $3,477,822.
50% to Equity Pool: $3,477,822.
Key Benefits of the Model
Equity for Members: Renters build financial equity while maintaining housing stability.
DAO Sustainability: Controlled BLTBY token issuance ensures long-term network scalability and value.
Community Growth: EQT tokens incentivize participation and align individual and community goals.
Financial Returns: The model balances steady income from rent with long-term property appreciation.
Scalability and Long-Term Vision
This financial model aligns Built By DAO with its mission to create a $1 trillion network. By emphasizing measured token issuance, equity-building for members, and sustainable property management, the ecosystem remains adaptable to future growth and market changes.
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