Real World Assets (RWAs) such as real estates are illiquid, hard to diversify and off limits for retail investors.
GAMMA Cities leverages blockchain technology to tokenize and fractionalize yield-bearing residential and commercial properties, unlock liquidity and enable investors with limited budgets to own stakes in highly profitable assets. Through tokenization, investors can purchase fractional ownership in high-value assets, gaining exposure to safe and potentially lucrative investment. Token holders receive 85% of the generated yield from the underlying assets, while 15% is deducted as management fees and treasury overhead. The project will improve the liquidity of the fractions through its treasury. The Treasury will guarantee to buy any fraction based on its latest market valuation using GMAC.
Nowadays, assets have the ability to be represented on a blockchain using a unique digital identifier known as a token. Tokenization is a process that converts ownership rights to an asset into a digital token, which shares similarities with the traditional method of securitization. By transferring asset information onto the blockchain, ownership rights can be transmitted and traded securely on a global digital platform. GAMMA Cities, for instance, focuses on tokenizing yield bearing assets such as residential properties and commercial real estate, but in general, any asset, ranging from valuable artworks to precious gemstones, can undergo tokenization.
The native ERC20 token, GMAC, serves as the backbone of the GAMMA ecosystem. GAMMA facilitates transactions within the platform and allows users to participate in various activities, including staking and earning passive income. Token holders can stake GMAC to receive a portion of all generated fees from the project, providing a tangible incentive for holding and supporting the token. Additionally, GMAC tokens are burned as fees when trading NFTs representing virtual assets within the ecosystem. Stakers of GMAC tokens also receive weekly NFT airdrops, representing stays in protocol properties or tickets to exclusive events, with the quantity and rarity of airdrops determined by the size of their token holdings.
Real-world assets will be tokenized as NFTs on the blockchain then divided into multiple fractions as ERC20 tokens. The protocol will pick high quality yield generating real world assets to put in a fundraising pool. Users can then buy a stake in these RWAs using stablecoins or other tokens. If the RWA fully funded, the protocol mints NFT representing the RWA NFT ownership, lock it in a smart contract then issue an ERC20 token with a capped supply to serve as fractions. If not, the protocol will refund users. The protocol then distributes the generated fractions to stake owners in proportion with their stakes.
The protocol team will contract Real World Assets (RWA) owners to add them to a fundraising pool for a specific duration. Then, a fundraising campaign will be announced for the clients to reserve their stakes at the RWA with 4% fees, while investors use GMAC Token the fees will be decreased to 3% . If the funds are secured, the team will use them to purchase the RWA, prepare it for rent, and then hand it over to a property management partner to manage the yield generating process. If funds are not secured, the protocol will refund users.
The RWAs will be renovated and made ready for rental purposes, such as Airbnb or monthly rentals. Each RWA will be given an initial value determined by a professional third-party evaluation report.
Minting RWA NFTs and Fractionalization
The protocol will use an escrow service to guarantee the ownership of fraction holders. The Escrow Service will mint an NFT representing the RWA and lend it back to the protocol using the RWA as collateral. This will guarantee that the RWA will not be sold without returning the RWA NFT to the escrow. Since the NFT is locked in a smart contract, the protocol will not be able to return it without buying all the fractions from their owners.
After borrowing the RWA NFT from the Escrow service, the protocol will lock it in a smart contract and issue and distribute ERC20 tokens with a capped supply representing the fractional ownership in the NFT to RWA stake owners in proportion with their stakes.
The RWA NFT can be unlocked only if the user owns all of its fractions. When the NFT is claimed, all of its fractions will be burned permanently
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In the Gamma platform, NFTs fractions serve as digital reflections of real-world assets (RWAs), offering backed tokens to investors. These fractions can be traded on a secondary market enabling investors to liquidate their assets in an efficient manner. A total of 3% fee is applied to both the maker and taker for transactions. If GMAC tokens are used as an exchange medium, the fee is reduced to a total of 2%.
A portion of fees collected from trades executing using GMAC are permanently "burned", reducing the overall supply. Additionally, half of the fees from stablecoin transactions are allocated for the repurchase and "burn" of GMAC tokens.
Any user can unlock fractionated RWA NFTs if they hold the total supply of fractions in their wallets.
RWA NFT owners then have the option to redeem their NFTs to acquire the underlying RWAs if they meet the legal requirements in the RWAs' jurisdiction. If they are unable to fulfill these requirements, they can choose to sell the NFTs on secondary markets or re-fractionalize them. Once the redemption process is complete, the NFT will be permanently removed (burned).
NFTs or fractions holders: Will receive 85% as a gross income generated from the RWA Rentals. The distribution will be made in stablecoins. 15% will be deducted for property management.
Discounts on fraction trading fees, staking rewards, and airdrops.
The GMAC token serves as the native utility token within the project. It has an Maximum supply of 10,000,000,000 tokens, and its distribution is divided as follows:
Investors: 30% of the tokens will be sold to investors during a presale and an Initial Coin Offering. 20% will be available immediately to buy fractions and exchange. 80% will be vested in a 1-year period.
Team and Marketing: 15% of the tokens will support the development team and marketing efforts. Vested over 3 years.
Treasury: 45% of the tokens will be used to acquire real-world assets, forming the treasury of the project. Vested in 7 years. 22% will be available immediately to be utilized in improving RWA fractionalization liquidity.
Community Incentives: 10% of the tokens will be dedicated to rewarding the community through staking, liquidity provision, airdrops, Prize NFTs, and other incentive mechanisms. Distributed as rewards over a period of 3 Years. 33% of it will be available immediately as liquidity and farming rewards for DEXs.
The GMAC token implements a time-locked model to incentivize long-term staking and ensure a fair distribution of profits. Stakers are required to lock their tokens for a minimum period of one month to become eligible for Accommodation NFT, Tour NFT, Token airdrops and future revenue shares from the project.
This time-locked mechanism encourages commitment and aligns the interests of token holders with the long-term success and sustainability of the GAMMA project.
The project will offer a way for users to make the most of their RWA fractions. Here's how it works: When an investor buys fractions of a certain RWA, they can use these fractions as collateral to borrow additional fractions or stablecoins from the lending pool. However, the borrowed amount cannot exceed 80% of the original fraction's value. The borrowed amount must be repaid at any time in the future, without a specific maturity date.
