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RealEx is the first real estate-backed cryptocurrency. The RealEx DAO (decentralized autonomous organization) aims to democratize real asset ownership and empower people to participate in wealth creation through decentralized finance.
To accomplish this, RealEx DAO will release the world’s first steadycoin (ticker RLX), which is a token backed by inflation-resistant assets (not fiat currency) that offers the concept of yield to the steadycoin owners and provides a medium of exchange. RealEx plans to have an initial DAO-to-DAO LBP (Liquidity Bootstrapping Pool) launch event in 2022.
RealEx DAO will use proceeds from its steadycoin sales to acquire real estate and crypto assets to support the continued development of its technology platform (the “RealEx Protocol”) on behalf of the community.
The release price for RealEx steadycoins is currently being assessed and determined with the aid of Longtail Financial, a financial data science, token engineering, crypto-economic systems optimization firm. Prior to the initial LBP launch event, RealEx tokens may be available at a discount to the initial offering price. After the RealEx steadycoins are trading on DEXs, the price may change based on market demand.
The RealEx DAO can not make any representations of future value of RealEx steadycoins or guarantee any form of return.
RealEx steadycoins are sent to your wallet like any other crypto or token.
Yes. The plan to date is to run the LBP launch event with RealEx steadycoins available to purchase via ETH. If you have other cryptocurrencies, you will be able to transfer them to ETH for your initial RLX purchase.
Yes. You will need to have a wallet to store your RealEx steadycoins. If you do not have a wallet, MetaMask is an option because it is easy to use, secure, and completely decentralized. You will set up your MetaMask wallet, load it up with the appropriate level of ETH and then use that to purchase your RLX steadycoins.
RealEx aims for its steadycoins to be listed on DEXs (decentralized exchanges) after it's initial launch, including exchanges such as Uniswap, Sushiswap and/or others.
Since RealEx is the first steadycoin, there is nothing exactly like it. DAO’s that have incorporated similar concepts related to digital assets include Ethereum, MakerDAO (DAI), Olympus DAO, UniSwap, AAVE, and Klima DAO.
Please note: None of these DAOs are based on real assets. It is the use of real assets that separates a steadycoin from a stablecoin or a typical cryptocurrency.
By owning a RealEx steadycoin, you are a member of the RealEx DAO community and own a pro rata share of the real estate in the Vaults and the crypto liquidity pools operated by the DAO.
If you own RealEx steadycoins, you are a RealEx DAO member, which gives you the right to vote at regular intervals on which properties RealEx DAO should acquire. You can even make contributions to help develop the RealEx Protocol and provide value added services that enhance the underlying real estate.
Initially, the RealEx DAO is focused on acquiring apartment buildings, student housing, hotels/vacation rentals, and clean energy infrastructure. The DAO will purchase properties in locations that our community believes have the most upside potential in the coming years. The DAO can expand the types of properties they want to pursue and the markets they invest in as our community grows.
The DAO will own a basket of cryptocurrencies. RealEx DAO members will have the opportunity to vote at regular intervals on the amount and make up of the holdings in the crypto vaults.
The choice is yours and there are several publicly traded REIT opportunities for investors. REITs are not crypto investments and do not hold crypto assets. RealEx inherently carries more risk than a traditional REIT because it is a cryptocurrency and by definition holds both property and technology investments. It’s a matter of investor preference. RealEx is designed for investors who prefer to invest in a crypto that is backed up by real estate assets, has limited volatility compared to other crypto, and has higher earnings potential than other traditional assets. RealEx DAO may eventually also own REIT assets, which will allow RealEx to gain exposure to market segments that the community would like to pursue in a more diversified manner.
Those pre-buying RealEx steadycoins before the initial offering are required to go through anti-money laundering (AML), know your customer (KYC) checks to verify that funds being used to buy RealEx steadycoins are not from illegal activities.
Markets fluctuate and real estate is not immune from these risks. Historically, real estate tends to be less volatile than other forms of investments and it can also provide a hedge against inflation. However, to hedge against possible calamitous events, such as COVID shutting down travel in 2020, RealEx DAO’s investment guidelines require that the DAO hold at least two years of operating capital reserves on our balance sheet to support the assets in the portfolio, meaning that the DAO can continue to hold the property, even if they lose all rental income, for two years. The DAO can also take additional measures, such as refinancing buildings, to help navigate downward cycles.
ESG is a term for environmental, social, and governance, and refers to processes, technologies, and systems that are installed in buildings to help them reduce their environmental footprint, provide the greatest benefit to their local and global community, operate in ways that are transparent to the community, and provide accountability for actions. All RealEx DAO properties go through extensive ESG screening prior to acquisition. In most cases, RealEx will add layers of ESG technology and processes to every building in our community’s portfolio. For example, the DAO may buy a student housing complex and install solar panels, better windows, foot traffic monitors, water usage monitors, and revisit leasing processes to create a more inclusive approach to operating. Over time, ESG upgrades to the building reduce its carbon footprint, water usage, and create the highest and best use of the property.
RealEx DAO is not a development company; the DAO is a community of people who believe that crypto has a greater impact when connected to real things. To ensure that the DAO has qualified and capable people within its community, some of the world's leading ESG-focused property developers have been recruited as DAO members to help the community evaluate, acquire, and upgrade properties. Each developer goes through an extensive screening process to become a RealEx DAO partner.
RealEx DAO uses the best practice to ensure our community only acquires properties that have been properly vetted and are likely to meet our financial return targets and ESG requirements. Potential acquisitions are screened by our real estate analyst team and go through an intensive scoring system. Most don’t make it past this point. Those that do, go through a thorough underwriting process. If the property and it’s development plan pass that step, it is presented to the RealEx DAO at which time the community votes to determine if it should buy or pass on the property. If the property is approved by the DAO, it is purchased and the local developer and operator will implement any value-added plans and conduct ongoing operations.
RealEx is built on Ethereum protocol. RealEx DAO also is building parallel token frameworks, to accelerate adoption of Layer 2 technologies. These include parallel development on Polygon. RealEx is “platform agnostic” meaning that if a better blockchain technology with greater liquidity comes along, the DAO can choose to plug and play on that platform.
Since RealEx steadycoins are backed by real assets, the DAO has to engineer far greater security protocols than a typical altcoin. Many of the initial owners of RealEx DAO steadycoins have gone through a KYC/AML process that allows the DAO to keep a register of the owners of every token at all times. If a token is tampered with, or someone attempts to hack a token, it will affect the ability to use the token, as it will trigger a KYC/AML flag, requiring an automatic dispute resolution.
- RealEx DAO acquires real estate properties and cryptocurrencies for the purpose of staking.
- The RealEx DAO plans to acquire properties and portfolios of properties in real estate funds that have historically generated 8-10% returns net of all expenses and have grown in value at 5% per year. The DAO aims to allocate 70% of the funds raised to buying properties. Over time, this ratio may change.
- RealEx DAO plans to set aside 20% of the funds raised to buy more crypto holdings, which it will use for staking operations. The RealEx DAO has voted to reserve the right to swap unsold steadycoins from its treasury with other steadycoins for staking activities.
Yes. You can stake your RealEx steadycoins to generate yield. RealEx DAO will offer a staking program that is modeled off of Olympus DAO. More information on this is to be released prior to launch date.
If you are concerned about risk and can not afford to potentially lose your entire investment in RealEx DAO, you should not invest. RealEx DAO operates in a highly volatile marketplace with a new business model. While the thesis and data science behind the RealEx concept supports upside potential for investors, this comes at a much higher risk profile than a traditional stock or REIT.