In the third part of my series to the PropTokens I will deal with the possibilities and rights you have with the tokens that are issued by a PropToken. Please have a look at my previous articles, on which this article is based. You can find these articles here.

Privatization

PropToken Privatization is the process of transferring one’s

property rights off chain. For this to be possible, a shareholder must have 100,000 tokens of the associated PropToken. The motion for

PropToken Privatization can be initiated by a majority stakeholder

controlling at least 80,000 BSPT.

A majority shareholder can then place a tender offer using a smart contrac to acquire the last 20% of the BSPT token in circulation. For a tender offer contract to be successful, the majority shareholder must own at least 90% of the 100,000 BSPT tokens. Blocksquare will then assist and advise the majority shareholders throughout the PropToken privatization process.

To create a Tender Offer Contract (TOC), the majority shareholder must provide a start date, end date and the address of the PropToken. The majority shareholder must then ensure that he submits enough ETH for the TOC before the start date. As soon as the ETH transaction is confirmed, the minority shareholders can start sending their tokens to the TOC.

The TOC offer a bonus according to the following scheme:

Day 1 = 20% bonus

Day 2 = 15% bonus

Day 3 = 10% bonus

Day 4 = 5% bonus

Day 5+ = no bonus

Remuneration

Holding BSPT tokens of a particular PropToken allows the owner to collect BST tokens generated with the associated property. Blocksquare uses transaction and accounting data recorded on the Ethereum block chain to calculate how much a user earns. The earned BST tokens can later be sold at an exchange.

Right-To-Use

With the help of BST tokens, it is possible to rent all properties for short-term rent, apart from already rented properties, at any time. Timesolts for these properties are given on a first-come basis. A user’s right-to-use is distributed in form of BST tokens based on the holding period of each set of BSPT tokens in a portfolio. Some BSPT tokens produce more BST than others depending on the underlying property performance. BSPT holders can influence a PropToken performance by regularly monitoring activity and wielding their government rights.

Would you like to know more about Blocksquare?

Check out the following resources for more information on Blocksquare (www.blocksquare.io):

One Page Doc → go.blocksquare.io/onepager

Whitepaper → go.blocksquare.io/whitepaper

Proof of Title Paper → go.blocksquare.io/proofoftitle

Help Documentation → go.blocksquare.io/helpdocs

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