Purchasing and Appraising Properties
The Real USD treasury will use DAI ingested through the minting process to purchase property TNFTs currently listed on the Tangible marketplace. This will be automated, any properties listed at a price within a predetermined percentage of Tangible’s True Property Valuation (TPV) will be purchased by the treasury using DAI inflows.
Valuations for each property in the treasury will be reevaluated on a rolling, scheduled basis. While there isn’t a live price on a house or the housing market, this approach will provide an accurate, current estimate on our real estate holdings. It also ensures that movements in the real estate market aren’t recognized all at once across the treasury. A 3% annual decline would be correctly reflected in monthly increments across our assets, not a one-time 3% drop. This reduces volatility in the treasury backing, providing for a more stable collateral for Real USD and better timelines for recalibrations in treasury management. It’s a structural advantage to backing with real estate.