While real estate has been one of the most stable and profitable forms of investment for generations, it is now out of reach to most people due to upfront down payments and high-interest rates. With the advent of blockchain technology and cryptocurrencies, a new player has entered the scene: BonfireDAO; The revolutionary fractionalized real estate investment protocol that is helping its members acquire generational wealth.
Bonfire is disrupting the real estate industry by allowing everyday investors to join the new era of real estate investment and ownership through property tokenization. It runs on a DAO or Decentralized Autonomous Organisation model, which means, unlike traditional corporations, assets on the Bonfire platform are leaderless and non-hierarchical and run solely by its community.
The company is attracting many investors with its easy-to-use platform and game-changing concept. In this article, we will contextualize and demystify Bonfire’s approach and model to illustrate why they are the future of how real estate will be bought and sold.
How does it work?
For most folks, buying real estate is shrouded in mystery. Terms like “contingency periods”, “depreciation”, and “interest expense” are largely only known by elites. And even if someone understands how real estate works, it is difficult to scrape together the upfront down payment often necessary to buy an asset. Bonfire empowers everyday people with a solution to these obstacles by making real estate investing more accessible without having expert knowledge in real estate or an immense bank account.
We were given a sneak peek of Bonfire’s forthcoming technology protocol which was built on ERC20 and allows users to pool their resources (fiat or crypto) together to buy property without the hassle and expense of going through traditional channels. By tokenizing real estate assets, Bonfire makes it possible for investors to own a piece of property without going through the costly, time-consuming, and taxing process of buying an entire property alone.
Bonfire runs on a straightforward and well-thought-out model that validates and evaluates income-producing assets and ensures the seller isn’t involved in fraud before tokenizing the property. Only after this can the property be sold off and managed solely by the new joint owners of the asset.
All DAO token-holders have partial authority over all future activities around the platform according to the number of tokens they bought. The Bonfire protocol employs smart contracts allowing members to make and vote on property proposals conveniently. These proposals are dynamic and can include anything from painting the walls, raising the rent, or selling the property to the highest bidder. A greater volume of tokens means a more significant distribution of decision-making power.
Think about it like this– the more tokens you buy, the more percentage of the property you own. You are never a sole owner or decision maker but rather in a community of investors who all have the same goal of drawing income from the investment property.
What are the benefits?
- Anyone can own real estate anywhere; farmers in India can own part of a skyscraper in New York City
- Investors can acquire tokens with fiat or cryptocurrency of their choice. After this, a DAO LLC gets established when all tokens have been purchased on the marketplace.
- The model transcends traditional real estate by distributing buying power amongst all income classes.
- Members can buy a fraction of the property without raising the total capital for the entire property upfront.
- Investors can acquire tokens through fiat or cryptocurrency.
- The marketplace validates all properties for you to rule out the risk of fraud or unpaid property taxes.
- Members don’t have to qualify for a mortgage, sit on a large down payment, or have a background in the industry.
- Real estate tokenization enables members to diversify their real estate portfolios by participating in investment opportunities across different asset types and geographies.
- Security and transparency are inherent to the information on the blockchain’s distributed ledger, solving issues and enabling people to buy and sell their real estate assets in a liquid manner that has never existed before.
- The platform runs on the trusted Polygon blockchain.
BonfireDAO is a gem for anyone looking to get into real estate investing regardless of the budget you have at your disposal– there’s a spot for everyone around the Bonfire.
Bonfire helps communities that want to invest in real estate but don’t necessarily have large amounts of capital at their disposal. The protocol upends the rich-get-richer paradigm by enabling diverse income classes to buy fractional real estate ownership.
No longer is this significant income opportunity limited to the financially elite.
Their marketplace is expanding beyond real estate and facilitating investment into other income-generating assets currently inaccessible to average investors by tokenization and making them available on the marketplace.
Blockchain technology and crypto assets are quickly revolutionizing the world for people looking to invest in real estate. If you’re looking to get involved in this industry, BonfireDAO is a great place to start.
Bonfire was founded to empower everyone to achieve generational wealth.
Contact Person: Joshua Kagan