What is a property token?
Properties listed on Loaf are repsented via tokens on chain. All Loaf-issued PTs are represented as ERC-20 standard tokens. The supply of each PT is dependent on the amount of the property being issued at the time of the primary sale. There may be subsequent sales in the future and so supplies for a token may increase.
Yield
PTs allow their holders to access the underlying rental payments via the Loaf platform, paid out in USDL. This yield is a combination of the rental payments made by the current tenants as well as any ongoing obligations from the home owners. These ongoing obligations may include:
- Ongoing fees paid to Loaf to tokenization services
Homeowner obligations
At the time of listing (IPO) of their property, each property owner is required to pay an on-going coupon to Loaf based on the market price deviation from the listing price. This mechanism is there to ensure property owners don’t list their property at an inflated rate. This coupon is dynamic based on the current market price and paid out by the owner on a monthly basis. These payments are passed onto PT holders as part of the monthly yield pay outs.