Monaco Estates, a Monaco-based startup, has plans to launch the first ever cryptocurrency real estate investment fund with the project’s token sale pegged to begin on May 1st of this year. The startup will be the first ever rental service to accept payments in cryptocurrency, either through the platform’s native tokens or with more mainstream tokens such as Bitcoin and Ethereum as well.
The investment fund will use the Ethereum blockchain to leverage smart contracts as a means of automating payouts to individual investors. Because of the public and decentralized nature of blockchain tech, this means that the company’s profits will be easier to trace and quicker to distribute amongst investors.
According to Monaco Estate’s press release, 60% of rental gains will go to token holders in the form of ether and the other 40% will be reinvested into the fund where it will act as a reserve. Additionally, another security measure will be implemented to boost transparency – barring directors and shareholders from taking the company’s profits.
The team behind the project believes that by backing the platform’s native token, MEST, with some of the world’s most premium real estate assets, they can ensure that the fund will provide sufficient returns through rental profits and capital growth.
The main gist of the project is providing high-end apartment rentals in Monaco in return for cryptocurrency and allowing investors to receive monthly profit shares via cryptocurrency – specifically by being automatically paid in Ethereum through the use of smart contracts.
The payouts will be made for token holders that have their token in an Ethereum wallet. By Utilizing Ethereum smart contract technology the profit share will be equally distributed between token holders.
According to Monaco Estate’s official website, rental payments increase year by year, providing a sort of compounding effect. In addition, the increasing rental payments combined with the reinvested 40% of the companies profits help Monaco Estate to grow their portfolio and their token holder’s monthly Ethereum payouts.
The token presale is set on May 1, 2018. The company will be looking to raise up to 50,000 ETH with their Monaco Estate (MEST) tokens. The funds raised will be divided up and allocated for a variety of purposes. So, 84% will go to real estate capital, 10% will go to administration and legal needs, 5% to a reserve fund, and the last 1% going to smart contract development.
The max supply of the tokens will be capped at 100 million, with 73.4 million going to the crowd sale, 20 million staying with the project’s developers, another 6 million being devoted to the presale, and the last 600 thousand being used for presale bonuses.
With the growing trend for global regulations, the Monaco Estate Token Sale is working on complying with Know Your Customer and Anti-Money Laundering regulations to ensure a smooth transition to fiat post-Token Sale.