Investment Structures
Project tokens and token holders legal rights.
EleveX provides two robust tokenization vehicles—Corporate Resolution Agreement (CRA) and Debt Bonds (Collateralized Lending)—offering project creators flexibility in raising funds while ensuring investor protections through legally binding frameworks. Each option integrates immutable smart contracts and property-backed guarantees to provide transparency, compliance, and security for all participants.
1. Corporate Resolution Agreement (CRA) – Revenue Sharing
The CRA model enables developers to share revenue from real estate projects, granting token holders a proportional share of project profits. This structure is ideal for equity-based projects with ongoing revenue potential.
Key Features
Flexible Revenue Sharing Options:
Individual Projects: Invest in specific property developments.
Multiple Projects: Diversify investments across several properties.
Entire Business: Participate in the overall revenue generated by the developer or REIT.
Expected ROI Range:
Projects include an expected ROI range to provide investors with transparency about potential returns.
Offers medium risk with the potential for higher ROI, reflecting the variability of revenue.
Governance and Voting Rights:
Token holders participate in project governance, voting on proposals such as timeline extensions, contractor selection, or buyback decisions.
Legal Integration with Blockchain:
A legally binding CRA is registered with a local notary and uploaded to IPFS, where it is securely stored.
The IPFS document hash is linked to the token smart contract, ensuring immutability and allowing token holders to verify the document at any time.
Process
Developers sign a notarized CRA, detailing revenue-sharing terms, distribution timelines, and governance rules.
The CRA document is uploaded to IPFS, and its hash is embedded in the token smart contract.
Investors receive tokens representing proportional ownership, granting them a share of the project’s revenues.
Investor Protections
Immutable Legal Documentation: CRA details are permanently stored on IPFS, ensuring transparency and accessibility.
Annual Valuations: Independent property valuations are conducted every 12 months.
Regular Audits: Financial audits provide ongoing accountability.
Governance Participation: Token holders have voting rights to influence key project decisions.
2. Debt Bonds – Collateralized Lending
Debt bonds allow developers to raise funds through securitized debt notes, backed by property assets within the SPV. This structure provides fixed returns, ideal for investors seeking predictable outcomes.
Key Features
Secured Loans:
Loans are collateralized against the SPV’s property assets, reducing investor risk.
Suitable for short-term projects, such as renovations or sales.
Fixed Interest Returns:
Offers low risk with predictable, fixed ROI, making it appealing for conservative investors.
Principal repayment is guaranteed at the end of the bond’s maturity period.
Custom Agreements:
Debt bond contracts are tailored to individual projects, stored on IPFS for security, and linked to the token smart contract.
Process
Developers issue securitized debt notes backed by property assets within the SPV.
Bond terms, including fixed interest rates and repayment schedules, are finalized and uploaded to IPFS.
Investors receive fixed interest payments during the bond term and principal repayment upon maturity.
Investor Protections
Collateralized Security: Property value within the SPV backs the loan, ensuring repayment reliability.
Immutable Documentation: Debt agreements are uploaded to IPFS, with their hash integrated into the token smart contract.
Annual Valuations and Audits: Regular assessments ensure the ongoing value and accuracy of the collateral.
Key Comparisons: CRA vs. Debt Bond
Feature
CRA (Corporate Resolution Agreement)
Debt Bond (Collateralized Lending)
Return Type
Revenue sharing from project profits.
Fixed interest payments with principal repayment at maturity.
Legal Framework
Legally binding CRA integrated into smart contracts.
Customizable debt bond agreements tailored to projects.
Security
Backed by the project’s revenue generation.
Backed by property assets held in the SPV.
Governance
Token holders participate in project decisions.
Governance not required; fixed repayment terms.
Investment Horizon
Suitable for projects with ongoing revenue streams.
Best for fixed-term funding needs (e.g., 12–24 months).
Risk Level
Medium risk with higher ROI potential.
Low risk with predictable, fixed ROI.
Leveraging IPFS for Transparency
Both CRA and Debt Bond models use IPFS to securely store and manage critical project documentation.
Benefits of IPFS Integration:
Immutability: Once uploaded, documents cannot be altered, ensuring permanent records for token holders.
Decentralized Access: Documents are stored on a decentralized network, eliminating reliance on centralized servers.
Smart Contract Linkage: The IPFS document hash is embedded directly into the project’s token smart contract, allowing easy verification.
Investor Trust: Transparent and verifiable documentation builds confidence among investors.
Official Notary Signing & Registration with the Relevant Land Registry Department
The Agreements established between the project creators and token holders is officially signed and registered with a local notary. Following the signing, the property is also registered with the official land registry department in the respective country or union where the property is located. This dual registration enables token holders to verify the authenticity and accuracy of the property ownership and project creators' information through both the smart contract and local registries.
Conclusion
EleveX’s dual tokenization models—CRA and Debt Bonds—offer flexibility for developers and security for investors. By leveraging IPFS for immutable legal documentation and blockchain for smart contract integration, EleveX ensures that both options provide a transparent, compliant, and secure framework for real estate tokenization. Investors can confidently choose the model that best aligns with their financial goals and risk preferences.
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