How does it work from a technical and legal standpoint?
Technical model
Sabai Property is built on blockchain technologies, including tokenization. Essentially, tokenization is the process of tying specific rights to a physical asset, such as receiving profits from real estate, to a particular token or group of tokens.
The total cost of the property is determined through an independent assessment. Subsequently, the Sabai Property is divided into a specific number of shares, each valued at $50 during the initial sale. Tokens representing the property are then issued in the same quantity as the shares. Therefore, 1 token equals 1 share of the property, priced at $50.
It's worth noting that as the property appreciates, no new tokens are issued, preventing dilution of shares for existing investors. Consequently, the property's value growth directly correlates with the increase in token prices.
Technically, Sabai Property tokens are indistinguishable from cryptocurrencies, except for their tethering to a real asset.
Similar to cryptocurrencies, Sabai Property tokens exist on the blockchain—a decentralized data storage method. Unlike traditional systems, the blockchain relies on numerous user devices and lacks a central server.
This aspect ensures the blockchain's exceptionally high security level. By leveraging blockchain technology, Sabai Property maintains a reliable and transparent record of users' rights and token ownership.
Legal model
Legally, Sabai Property operates as an investment fund comprising multiple companies. The fund acquires assets and allocates the resulting income (from rentals and value appreciation) to investors in the form of dividends
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