Propy’s Token sale ends in less than 4 days, on September 15th.
It has been an exciting month for the team! Since the launch of our token sale, more than 14.5 million tokens (1PRO=$1) have been sold and about 5000 people took part in the sale. We have received over 33,700 ETH and over 1000 BTC.
To participate visit tokensale.propy.com
In 2016, Propy began a journey inspired by the idea of bringing automation and liquidity for the real estate asset via blockchain. Nine months later the team decided to create a token-based ecosystem and make a token sale. Now closer to the end of the token sale, we are at the beginning of an even greater venture.
After the token sale ends, we have new challenges and goals to achieve:
- Create the product and the infrastructure for the token circulation as per the white paper.
- Create protocol(s) that can self-sustain and be the base of the scaling decentralized ecosystem
- Create such a cryptoeconomics that would achieve the network effect
I wanted to share what exactly is to come in the following months for Propy to achieve these goals.
The first real estate purchase on the Blockchain ever, with PRO tokens
We have began deploying our roadmap and continuously develop the Transacting platform with its smart contracts. Following our MOU with the Ukrainian government, we will initiate the first real estate purchase on Blockchain (followed by California and Vermont).
This is a great step forward not only for Propy but also for the Blockchain community. For the first time a non virtual asset will be transferred on a blockchain — an asset with a high value connected to the real world.
Within the following week/weeks through the Propy transacting platform a buyer will buy a property in Ukraine remotely using PRO tokens and a crypto payment — Ethereum.
Within this pilot the Ukrainian government will officially accept and approve the transaction that will be executed by Propy’s smart contracts.
Thanks to this pilot the Ukrainian government is identifying the legislative change needed for real-time remote deals via smart contracts. Most importantly thanks to this pilot the Propy Registry is being polished.
The circulation of the PRO tokens includes:
Charging of PROs by Propy’s registry
Distribution of the collected PROs to the network growth pool (see below)
Ability users to buy PRO tokens from the market (exchanges) on their own or via back-end of Propy
Propy will initially charge 100 PRO tokens for the first transactions. Further a pricing mechanism will be introduced, where the Registry Fee will no longer be flat and will depend on the value of the property as well as it will be inversely proportional to the price of the token on the market and also will include an internal “Gas” price — a cost of execution of associated smart contracts. Such a mechanism is necessary to make sure that the service price will not become too low or too high of the token price is high on the market.
Several exchanges wanted to trade PRO tokens. Once the token will be available on exchanges in the next weeks/months the team will identify the best exchange and will buy PRO tokens from it on behalf of a user on back-end for each transaction when the user doesn’t have enough tokens. Alternatively the user can buy the PRO tokens at any exchange and use them to buy the property on Propy (it could be other platforms that will use Propy’s decentralized Registry in the future).
Introduction of dPOS for Propy’s decentralized ledger
Our team of engineers is developing a protocol for uploading titles in a certain unified format. We intend to incentivize the uploading of titles to the Propy Registry and want uploaders (brokers, title agent, governments) using the upload protocol to be rewarded for this with PRO tokens. Also we aim to make sure that the data they upload is legit. Currently we have ideas based on the concept of delegated Proof of Stake consensus how to solve that:
- Multiple miners (uploader) will add databases of titles to Propy’s Registry, and only the titles that have matched (duplicate uploads by different uploaders) will be rewarded and verified in registry.
- There will be a separate role of verifiers who will vote on the titles after verifying them by some external sources.
- Miners (uploaders) will be rewarded after the first finalized deed (transaction) with newly added title history.
Uploaders as miners will receive rewards in PRO tokens.
How Network Growth and Donation Pools will achieve Network affect
We continue to develop the Network Growth programme that will increase a number of Propy users and a number of transactions where PRO token are required. This week we have finalized PRO token balance integration in our App to encourage the adoption of the Propy platform worldwide by rewarding Propy users for various actions within the app. In the first months the team will not distribute a large amount of tokens (probably 100k tokens in total per month) for rewards as the programmes will be first tested.
To achieve the global adoption Propy is appointing ambassadors all over the world as a part of the network growth programme. The ambassadors should qualify and execute work for Propy in their region. You can register now. As of today there are ambassadors in several US states, UK, UAE, China, Russia, Ukraine and Bulgaria. Ambassador candidates applied to represent Propy also in South America, Spain, Korea, Thailand, Tanzania and Ghana.
PROs from the network growth pool will be distributed to governments and other large institutional actors to incentivize the utilization of the platform. The example: an entity replaces their registry with the Propy’s decentralized registry. For the registration of titles PROs are needed, thus we grant those PROs to the entity and for all future transactions with these titles PROs will be needed. As smart contract execution require Ether real estate purchase execution will require PROs. Thus if the entity registers 100k titles, all future changes of those 100k titles will require Registry Fee in PRO tokens.
Thus having millions of users and thousand of titles will attract more and more transactions on the platform and the PRO received into Network Growth Pool will be further used to attract new millions of users and thousands of titles and then transactions, which will be the foundation of the network effect. Our engineers are currently developing a simulation model to identify how many tokens to be given per user so that there will be a need to buy more tokens from the market to execute a real estate transaction.
Propy has reserved 15% of tokens for distributing to educational and software organizations/foundations. These tokens will be frozen for 1 year. It aims to increase the number of blockchain engineers within the blockchain ecosystem to encourage usage of Propy protocols and to support the improvement of blockchain infrastructure as a whole.
We’re going to establish a voting system via Reddit where anyone can choose and vote the most interesting projects which we’re going to support.
Engineers having PROs will be aware of Propy’s protocols and Propy will have the opportunity to identify the best talent all over the world, including the countries where we will need to customize smart contracts.
Achieving the network effect is one of the critical part of the cryptoeconomics. Creating such a novel business model where each transaction will bring new users and several new transaction is the opportunity for such a network effect. The community that consists of users of the product and blockchain engineers that hold tokens will inevitably support the product so that to protect the value of the token.