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5. BRICKS TOKEN & DAO TREASURY
Ethereum is our selected decentralized blockchain platform, enabling the creation of the $BRICKS token and Bricklayer’s self-executing smart contracts.
This ERC-20 utility token is a form of exchange that provides access to a lucrative real estate community. $BRICKS also acts as the governance token behind our interactive and democratic REIDAO which prioritizes collective intelligence over traditional centralized decision making.
Ethereum was the preferred choice due to its large and active developer and investor community. Now considered one of the few institutionalized virtual assets, Ethereum has been prominent since 2015 with a well-established track record. This dominant ecosystem has created network effects that help to drive mass adoption and sustained network growth.
The $BRICKS token is available for highly liquid, 24/7 trading on an established and reputable exchange (TBC), this allows the token value to be independent from the Net Asset Value (NAV) of the Treasury, mirroring the REIT equity shareholder structure.
Unlike the majority of blockchain projects, $BRICKS are rug-pull resilient, as the value is underpinned by income producing, physical assets which generate consistent distributions of quarterly dividends.
Dividend Reinvestment Plan (DRIP) optionality is available to members that wish to purchase additional $BRICKS using their dividends prior to withdrawal.
Bricklayer Treasury is designed to reduce risk and ensure long-term sustainability and growth.
R = the value of real estate assets
D = the value of virtual assets
T = total assets held in Treasury
P = the profit taken from virtual asset gains
T is designed to maintain a 75% weighting in RE assets and a 25% weighting in VA, when the VA portfolio exceeds 35% of T, Bricklayer takes profits, denoted as P, and invests 75% of those profits into a RE Opportunity Fund, denoted as F:
P = 0.75(D - 0.25(R + D)) if D > 0.35(R + D)
P = 0.25D if D > 0.35T
F = 0.75P
R = R + F
The remaining 25% of the profit, to be held in an interest-bearing VA Opportunity Fund, denoted as O:
O = 0.25P
The DAO can vote to instantly reinvest O:
D = D + O
Or remain in O, to be deployed when D falls below 15% of the total portfolio value:
0.3(R + D) if D < 0.15(R + D)
This approach aims to reduce risk, protect against downside price movement, take advantage of crypto-market volatility, and ultimately enhance NAV and provide a stable income stream to the DAO members.
Treasury NAV: $20M
Real Estate Fund: $15M (75%)
Virtual Asset Fund: $5M (25%)
Once the VA value exceeds $8M* (35%) a vote will be triggered to take $3M profit.
New Treasury NAV: $23M
Assumption that Real Estate Asset Value remains unchanged at $15,000,000.
In this example, the $3M profit would be split 75/25, with $2.25M exchanged for stablecoin and allocated to the RE Opportunity Fund and $750K would remain ETH and allocated to the VA Opportunity Fund.
This triggers a member voting event to:
- 1.Move the ETH from the VA Opportunity Fund back into the VA Fund
- 2.Consider a diversification proposal before reinvesting into the VA Fund.
- 3.Remain in the VA Opportunity Fund in Digital Gold
The NAV of the Treasury will take centerstage in the Bricklayer Dapp, displaying details of all assets under management (AUM) and associated weightings.
The Treasury derives revenue from two core income-generating components:
- 1.Real Estate & Validator Nodes
- 2.Digital Assets
All real estate assets are acquired using individual Special Purpose Vehicles (SPV) and will be made available for tokenization. This model supports this transformative financial paradigm for tokenizing real estate, fostering increased accessibility, liquidity, and transparency while democratizing investments, reducing costs, and enhancing market efficiency in an interconnected and digital age.
Revenue generated from real estate assets managed by BCRE will be invested into Ethereum validator nodes situated at the real estate asset. The net income received from the asset’s rental proceeds will increase the value and size of the Ethereum validator node and 100% of staking income will flow into the Treasury and subsequently be distributed via quarterly dividends in ETH and stablecoins to our licensed members.
Revenue generated from tokenized assets which are not managed by BCRE will flow through to the validator node at the nearest Bricklayer office.
BCRE will leverage partnerships with institutional grade occupiers, to maximize the uplift in profits on all opportunities and reduce portfolio void periods.
Our occupier partner’s real estate requirements are matched with available sites and vacant buildings introduced by our licensed members.
Occupier partners (OP) benefit from $BRICKS token rewards connected to a digital wallet associated Bricklayer lease documentation.
BCRE is responsible for executing the transactions and will utilize master service agreements (MSA) and pre-agreed lease templates to ensure the leasing process is frictionless and effective.
Following the onboarding process our OPs will share live requirements with BCRE for an allocation of BRICKS tokens post lease completion.
Occupier requirement circulars will be available to all members who cement a minimum of 5,000 $BRICKS.
PLEASE REQUEST & COMPLETE THE BRICKLAYER DAO NDA TO LEARN MORE ABOUT THE OCCUPIER INITIATIVE
All real estate assets introduced to the DAO, in response to the OP requirement circulars, by the licensed members are subject to the following stages:
Stage 1: RE introductions from our licensed members are to be submitted to BCRE, consisting of our Real Estate APs, who are assigned to validate the proposed acquisitions.
Stage 2: BCRE attributes a project score to each proposed acquisition. Following validation, BCRE (with the assistance of the Introducer) will place the project under contract and send it to the occupier partner for appraisal in their site selection process.
Stage 3: Once the project passes site selection, BCRE will action a designated Real Estate AP to work with the Introducer to acquire the asset, secure the agreement to lease and update the portfolio records.
Stage 4: If the opportunity, which is now under contract, is rejected by the OP, it will be listed on the Bricklayer Live Deal Forum, where our licensed members are able to access these opportunities and directly connect, peer to peer, to transact independently.
Introduced external opportunities, which are not associated to OP requirements, will be submitted to BCRE for appraisal and similarly assigned a project score. If sufficient funds are available in the RE Opportunity Fund and BCRE validates the opportunity, it will be placed ‘under contract’ and uploaded to the voting platform for the DAO to acquire or reject.
Any opportunities that Bricklayer does not acquire will listed on the Live Deal Forum for our licensed members to transact independently.
All portfolio assets are visibly transparent and traceable using blockchain title companies, such as REVVY. Links to ownership documents are found in the Treasury section of the website and quarterly valuations of the portfolio will be undertaken.
The selected Asset Management company will report to BCRE and oversee the portfolio management. Responsibilities will include resolving/negotiating issues with occupiers, providing recommendations regarding capital asset management, reviewing and approving service charge reconciliations and real estate taxes, rent collection and distribution, and general advisory on portfolio performance. Performance reports will be accessible for our members to view and download.
Members of the DAO may propose a vote to dispose of any real estate asset in the Treasury on a quarterly basis. If the majority vote for disposal, BCRE will assign a licensed member to initiate a marketing campaign and formally list the assets for sale.
The primary objective of the VA investment strategy is to balance the potential upside of Ethereum with the stability of Digital Gold.
Ethereum's versatility, developer community and established history make it a compelling choice for members looking to gain exposure to virtual asset markets. While it has experienced some significant price fluctuations over the years, it has also demonstrated resilience and potential for growth over the long term.
Ethereum is one of the most liquid cryptocurrencies, with many exchanges and trading pairs available. This liquidity makes it easy to trade, even during periods of high market volatility. By investing 50% of the VA fund in Ethereum, the portfolio can potentially capture significant gains in the virtual asset market, while the other 50% allocated to Digital Gold helps mitigate risk and provide stability during market downturns.
The quarterly rebalancing of assets will allow for a strategic adjustment of the portfolio's allocation, ensuring that the investment remains aligned with the fund's investment goals. The rebalancing process will involve selling a portion of the Ethereum holdings and purchasing additional XAUT, or vice versa, depending on market conditions.
This approach aims to maximize returns while minimizing downside risks, providing investors with a balanced portfolio that can weather market volatility. The strategy is well-suited for investors who seek exposure to the virtual asset markets but want to manage risk effectively.
The designated AP for VA will also be responsible for systematically taking profits from the VA Fund to align with the target 75:25 weighting to fuel future real estate acquisitions and the purchase of additional virtual assets at discounted prices.
PLEASE REQUEST & COMPLETE THE BRICKLAYER DAO NDA TO LEARN MORE ABOUT THE DIGITAL ASSET PLATFORM