DAC Redemption Flow:
Triggering Redemption: When the property associated with a DAC is sold, the proceeds are deposited into the Solomons Lot Property Vault. The master equity token associated with the property is then burned, which initiates the redemption process for the DACs and triggers a redeeming state for the DACs
Entering Redemption State: The DACs linked to the property automatically enter a redeeming state once the master equity token is burned.
Redemption Offer: An offer file is generated and sent to each DAC holder. This offer file is for the amount of funds from the property sale that the DAC holder is entitled to, in exchange for burning the DAC. The funds are automatically distributed and are locked to ensure automaticity.
Accepting the Redemption Offer: DAC holders can accept the redemption offer through their digital wallets. Upon acceptance, the DAC is automatically burned, and the corresponding funds are sent to the DAC holder in USDC.
1% Developer Fee
Each transaction involving the purchase of a DAC incurs a 1% developer fee. This fee is added on top of the purchase price of the DAC.
Automatic Redemption and Security
The redemption process is automated and secured by the smart (coin) contract technology on the Chia blockchain.
When the property sells and closes, the system ensures that the DACs are redeemed and funds are transferred without manual intervention, providing a seamless experience for users.
Legal Agreements and Digital Signatures
By accepting a DAC redemption offer, you agree to the terms outlined in several key agreements embedded within the DAC’s metadata:
Assignment of Rights Agreement: This agreement facilitates the transfer of ownership rights associated with the DAC.
Forward Sale and Exchange Agreement: Details the terms of the property sale and the fractional ownership represented by the DAC.
Technology Management Terms: Outline the operational aspects of the DAC redemption process.
Your digital wallet signature serves as a legally binding acceptance of these terms, recorded immutably on the blockchain. This digital signature method ensures the authenticity and security of transactions, eliminating the need for physical signatures.
Conclusion
Investing in DACs on Solomons Lot provides a streamlined and secure way to participate in fractional real estate ownership. The automated redemption process, coupled with robust legal agreements and blockchain security, ensures that investors can confidently manage their investments and realize their returns efficiently.