Distributed economy not only enables creating a sustainable value for every stakeholder but also ensures an exponential growth, faster scalability and most importantly tokenisation of the real value will create multi-layered value and wealth to each of the
Fractional ownership of real assets when married to Metaverse can create a multifold opportunity and value for all the stakeholders involved.
Current Developers model:
A developer secures a piece of land by owning it or getting the rights to develop it with a contractual binding with the landlord. The decision to partner on development may depend on multiple factors. Most of the developers raise money through Promoter Capital plus debt plus Equity capital and also through advances from prospective buyers or clients.
Once the property is developed, Developer gets a share of the property, which can further be monetised by selling or renting and also part of the revenue model is maintenance, which may be for a period of time post development, which may be obligatory but there after renewable on contract.
Fractional Ownership model:
Fractional ownership is a form of collaborative consumption where the overall cost of a property is split among a group of owners or users. A party that takes on fractional ownership of a vacation property can make personal use of the space and earn revenue when it is rented out. Which could mean a return in terms of Fixed interest of about 9% and (in a growth market) 5% to 7% p.a. appreciation, which could attribute to an earning of 14% to 16% p.a. which is very attractive in comparison to the Fixed Deposit and since it has a physical asset, may not be directly compared to an equity market investment. Some
of the land developers, Workspace operators, Vacation home players and luxury Cars rentals and Yatch/Private Jet companies are employing this model. For the Businesses, the revenue remains the profit generated on the value of the asset that is sold in fractions and the maintenance fee, in this case the maintenance contract will remain perpetually in control of the Business.
Fractional Ownership Meta (FOM) model:
FOM model is multi layered. Herein, First layer remains Fractional Ownership. Both for the Businesses and the consumers.
Second layer will be TOKENISATION of the asset value, capturing the fixed asset value and the future earnings (which will continue to reflect on the Tokens value).
Third layer is the METAVERSE. Herein the customers get a piece of the Metaverse
Fourth layer is the partnered games
Fifth layer is the partnered entertainment
Sixth layer is the partnered Brand engagement
The revenue will also be in SIX layers and will be enjoyed by all the stakeholders.
Currently, in India, Crypto Currency is an instrument of Investment and tax is applicable on trading. Herein, the above model will be fully in compliance and also, attaching the tangible asset, the Token will have better value and also give us a scope to further lobby with the Government to extend more sops to such practitioners.