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by xur17
1951 days ago
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There's a company that purchases properties and rents them out, wraps them in an LLC, and then assigns ownership of the LLC via crypto tokens (this ownership is written into the LLC docs). Owners of the tokens then receive monthly payments for rent. I'm wondering if it would be possible to do something similar to accomplish what you are talking about - advantage being that no laws need to be modified to make it possible. The LLC acts as a thin proxy layer between the US legal system and the NFT that assigns ownership. Essentially there could be a legal service that would allow wrapping and unwrapping of these properties, and once they are wrapped, DeFi mortgages would become possible, split ownership, transfer of ownership within DeFi, etc. I could imagine a whole ecosystem developing around this that people could buy and sell houses inside of. |
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If I buy fractional ownership of your rental LLC via traditional means, it's not hard to get those well-understand contracts enforced by courts. Not necessarily cheap depending on your lawyer, but it's well understood.
If I instead buy fractional ownership via some sort of crypto transaction from another country and suddenly the payments stop, it becomes difficult to work with a foreign legal system to understand essentially computer code.
Worse yet, what do you do if someone loses the private keys to their crypto tokens? Or they're stolen? Does the new holder simply get to collect the rent from that point forward? Does a hacker get to own the house because the owner's account was compromised?