Token price and profitability
Last updated
Last updated
There are 2 measures of profitability in every property - ROI and APR.
ROI (Return On Investment) is the return on investment, which shows your total return on investment as a percentage.
APR (Average Percentage Rate) is the average annual return on your investment.
The price of each fraction (token) of the property under construction is not equal. Each next token is more expensive than the previous one.
The token price increases smoothly throughout the fundraising period. After the end of the down payment collection (the first fundraising stage), it rises by 5%.
This token pricing mechanism was explicitly designed to fairly distribute the level of returns between early and late investors. The earlier an investor buys tokens, the lower their price — and the higher the return on completion.
Example: At the beginning of investment collection, the first token purchased by Villa A under construction costs $32. The price of the second token is $32.0005, the third token is $32.001, the tenth token is $32.005, and the hundredth token is $32.05. The last (10,000th) token will cost $37. As we can see from the example, the difference in the price of the first and the previous token is 15.6%. The price of tokens and their growth will be individual for each property.
The price of a token after construction and the sale are completed will be $45. Investors will receive this amount per token when the facility is sold.
When the construction is completed, and the property is sold, the income is evenly distributed among investors. For example, each token pays $45 regardless of the entry point and purchase price. Therefore, profitability indicators for each investor will be individual: they will depend on the entry point and the number of fractions purchased.
