Examining the Tokenomics of a Utility Token in a Security Token Ecosystem
The Tokenomics of Landshare
Introduction
I believe there is no better way to start this article than with a small meme:
Real estate has long been regarded as a lucrative investment, providing benefits like passive income, inflation protection, or the security of having a place to call home. However, for many individuals, owning property remains an elusive dream due to the substantial capital requirements and barriers to entry. Institutional investors often dominate the real estate market, leaving little room for the average person to participate.
To address this challenge, Real Estate Investment Trusts (REITs) were introduced as a means for investors to gain exposure to the financial performance of real estate companies. By investing in REITs, individuals could receive dividends from the rental income generated by these companies' properties. While REITs offered a partial solution, the accessibility to direct real estate ownership remained limited.
Enter Landshare, a platform that aims to revolutionize real estate investment by enabling fractional ownership through tokenization. Landshare empowers investors to participate in tokenized real estate with a minimum investment as low as $50. By leveraging blockchain technology, Landshare opens the doors to a wide range of DeFi opportunities, including the ability to use tokenized real estate holdings as collateral for loans.
This article delves into the integration of the $LAND token into the Landshare ecosystem, how different user groups interact with the token, and the sources of its value. It aims to provide an in-depth exploration of the $LAND token and its role within the Landshare ecosystem.
$LAND Tokenomics
Below we can see the value flow diagram for Landshare. This showcases how the system works, where the relevant sinks and faucets are, and how value flows through/around the protocol.
A zoomable version of the diagram can be found here.
If you’re interested in the condensed, need-to-know tokenomics information for Landshare, check out the report on Tokenomics Hub.