Hi, I recently had an idea for a dapp that I think might be quite good for the Nervos ecosystem and wanted to share it to see what the community thinks. Apologies if I’ve posted this in the wrong section, feel free to move if so.
So basically, crypto isn’t going so great at the moment. Trust in the markets isn’t very high, and it’s trying to decide what the next narrative is going to be.
Normies don’t understand or care about Nervos Network or its technical capabilities,just like with the internet, but they care about the services it can offer them.
I see blockchain tech as being similar to the internet. We all knew it was useful technologyand going to change the world, we just didn’t know how.
Currently, crypto looks to be in the era of the internet with lots of silly cat videos.
I’m not sure how this would work from a legal point of view, things like KYC rules would have to be taken into consideration. Also whether or not an NFT could legally be considered proof of ownership of a share. I’m sure it can, but not 100%.
But basically, I think real world assets would be a good idea to focus on. The technology is here for this to happen, and if it took off it would be huge for Nervos. I have neither the skills, money or the time to do this myself, I’m just some guy, but I figured if you guys thought it sounded good we could maybe work out how to make it happen together? Maybe there’s some developers who could get a community grant to make it if they’re still doing those?
So what I was thinking was a decentralised property investing app that allows you to buy shares in properties (issued as NFTs) or allow multiple people to pool together to buy property.
This mitigates the problem of people seeing crypto as a risky investment, as they’re investing in property and their NFT is backed by a share in something with intrinsic value (property/land etc).
It also drastically lowers the barrier to investing in property, allowing anyone with a bit of disposable income to enter the market and potentially earn a return on their money.
I’ll explain how it works by giving examples of scenarios where it could be used.
First one is straight up buying properties. There is a house for sale, you would start a proposal for it which would issue proposal tokens. For the purposes of this example, it’s $100,000 for the house so you issue 1000 tokens for $100 each. The amount of tokens and their price can be customised. Fees and taxes will need to be considered, but will vary by location.
If enough of the proposal tokens are sold to raise the asking price of the property and cover any other costs, the offer is made. If it’s accepted, the proposal tokens are destroyed and replaced with ownership tokens. If not enough money is raised, or the offer is refused or the sale doesn’t go ahead, the proposal tokens are destroyed and money paid for them returned, minus any trading fees etc.
So now the property is under shared ownership. There needs to be some way of the owners to vote on things such as repairs, upgrades etc. The property can also be rented out, and shares of the rent paid to the shareholders automatically each month with a smart contract.
Another scenario could be buying cheap old properties and renovating them so they can be rented out. After renovation, the value of the property would increase, which would increase the value of their ownership share NFT.
Or it could allow groups of people and communities to share ownership of land for events, gardens, or just to simply stop someone buying it people don’t want to buy it for whatever reason.
Another possible use would be for communites to start buying up all the abandoned buildings and turning them into community spaces or housing etc and any money generated returned to the community.
There is a lot to work out still, so feel free to join in if you like it and have anything to add.
I think this is a good idea though, and what Nervos needs. Normies don’t care about how it solves the blockchain trilemma, but they’ll care that they can buy shares in property. Even some of the ones who wouldn’t normally be into anything crypto related will go for this. Investing in property is something everyone gets. It also means that the value of the tokens should, theoretically, be independent from the rest of the crypto market being linked to the market value of the property instead.