PropBlock AI
  • PropBlock AI
    • What is PropBlock AI
    • Problem & Solution
    • Key Features
    • Vision and Mission
  • RWA Protocol Overview
    • AI Agent Operational Architecture
    • Technical Architecture
    • Tokenization Process
    • Risk Management & Trading Framework
    • Tokenomics
  • FAQ
  • Risk Disclosure
  • Disclaimer
  • Brand Kit
Powered by GitBook
On this page
  1. RWA Protocol Overview

Tokenization Process

1

Asset Due Diligence

A rigorous verification process to ensure the property meets PropBlock’s investment standards:

  • Title Verification: Confirm legal ownership and absence of liens/disputes via blockchain-recorded land registries.

  • Physical Audit: On-site inspection (via partnered agencies) to assess structural integrity, maintenance, and compliance.

  • Market Viability: Historical rental yields, occupancy rates, and zoning regulations analyzed by AI tools.

  • Risk Scoring: AI flags red flags (e.g., flood zones, pending litigation) using geospatial and legal databases.

2

Legal Structuring

Compliance-first framework to bridge real-world assets (RWA) and blockchain:

  • SPV Creation: The property is legally wrapped into a Special Purpose Vehicle (SPV) to isolate financial/legal risks.

  • Token Rights: Smart contracts codify ownership splits, revenue distribution, and voting rights (e.g., 1 token = 0.01% equity).

  • Jurisdictional Compliance: Adapters for local regulations (e.g., U.S. SEC exemptions, EU MiCA compliance) are integrated into minting contracts.

3

AI Valuation

Dynamic pricing powered by PropBlock’s Predictive Valuation Engine (PVE):

  • Data Synthesis: Aggregates 50+ live data streams (mortgage rates, foot traffic analytics, infrastructure projects).

  • Scenario Modeling: Projects 3 valuation tiers (bull/base/bear) using Monte Carlo simulations.

  • NFT Metadata: Immutable appraisal reports and risk metrics are embedded into the NFT’s on-chain metadata.

4

RWA NFT Minting

Deploying the property as a compliant ERC-721R (RWA-standard NFT):

  • Fractionalization: The SPV ownership is split into 10,000–100,000 fungible sub-tokens (ERC-20).

  • Royalty Module: Auto-distributes rental income/profit shares to token holders via Base’s native account abstraction.

  • Legal Anchors: NFTs include cryptographic proof of insurance, audit reports, and SPV registration documents.

5

Liquidity Pool Creation

Enabling seamless trading via decentralized markets:

  • Bonding Curves: Initial liquidity pools use time-weighted AI pricing to prevent front-running.

  • LP Incentives: Stakers of $PROP tokens earn fees from secondary trades (0.3% of volume).

  • Oracle Integration: PropBlock’s AI oracles continuously adjust pool pricing based on real-world valuation changes.

Why This Matters:

  • Transparency: Every step is recorded on Base’s blockchain for immutable auditing.

  • Automation: AI handles 90% of due diligence/valuation workloads, reducing tokenization costs by 70% vs. traditional REITs.

  • Liquidity: Sub-tokens can be traded 24/7, unlocking real estate’s traditionally illiquid value.

PreviousTechnical ArchitectureNextRisk Management & Trading Framework

Last updated 28 days ago