Token price and profitability

Written by Artem
Updated 6 months ago

There are 2 measures of profitability in every property - ROI and APR.

ROI or Return on investment is the return on investment, which shows your total return on investment as a percentage.

APR or Average percentage rate is the average annual percentage return on your investment.

The price of each fraction (token) of the property under construction is not equal to each other: each next token is more expensive than the previous one.

During the entire fundraising period, the token price increases smoothly. After the end of the down payment collection (the first stage of fundraising), the token price rises by 5%.

 Example of construction token price growthExample of construction token price growth

This token pricing mechanism was designed specifically 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 of token price growth

Example of token price growth

Example: At the very 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 last token is 15.6%. The price of tokens and its growth will be individual for each property.

The price of a token after the construction and the sale are completed will be $45. This is the amount investors will receive 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 their purchase price. Therefore, profitability indicators for each investor will be individual: they will depend on the entry point and the number of fractions purchased.

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