Frequently Asked Questions

About Blockstate

What is the Blockstate Network?

The Blockstate Network is a digital system that revolutionizes property ownership by enabling fractional ownership through blockchain technology. We tokenize property shares as NFTs, creating liquidity, convenience and financial transparency for property investors.

How is Blockstate different from traditional timeshares?

Unlike traditional timeshares, Blockstate property shares can be freely traded, swapped with other members across the entire network, used to collect rental income, and even function as access tokens. Our blockchain-based system provides convenience, liquidity, and lower costs compared to traditional timeshare models.

Blockstate Community

Who is the typical Blockstate member?

Blockstate attracts enlightened free-thinkers who are disenchanted with the over-centralized state of the world. Our members tend to be seeking a balance between freedom of movement and stable accommodation. Through Blockstate, they establish temporary stability across our entire network of properties while maintaining their independent lifestyle.

How does Blockstate support a nomadic lifestyle?

Blockstate creates a decentralized network of properties that members can access based on their ownership. This allows naturally nomadic individuals to:

  • Maintain access to quality accommodations worldwide;
  • Build equity and income returns through property ownership without being tied to a single location;
  • Swap their time slots to create flexible travel arrangements;
  • Connect with like-minded community members across different geographies;
  • Keep personal belongings securely stored at various properties.

Fractional Property Ownership

What is fractionalized property?

Fractionalized property is a modern approach to shared ownership where a single property is divided into multiple shares that can be purchased by different investors. With Blockstate, these shares are represented by NFTs on the blockchain, with each share corresponding to a specific subdivision of the property and a designated week of the year.

What rights do I have as a fractional property owner?

As a fractional property owner through Blockstate, you have:

  • The right to occupy your subdivision during your designated week each year;
  • The option to sublet your time and receive the net rental income;
  • Governance rights to participate in property decisions through the DAO (see defintion below);
  • The ability to sell or trade your share at any time, entirely at your discretion;
  • A proportional claim to proceeds if the entire property is sold.

Blockchain Technology

Why use blockchain for property ownership?

Blockchain provides immutable record-keeping, transparent transactions, reduced intermediaries, automated processes through smart contracts, and global accessibility. These features make property transactions faster, more secure, and less expensive compared to traditional methods.

Do I need to understand blockchain to use Blockstate?

No. While we use blockchain technology behind the scenes, our platform is designed to be user-friendly for people with no prior blockchain knowledge. You can participate fully without needing to understand the technical details.

What are NFTs?

NFT stands for Non-Fungible Tokens. In blockchains, they are used to digitally represent something that is unique in some way. In Blockstate, they function as digital certificates of ownership for specific property fractions. Unlike typical NFTs, Blockstate's NFTs have practical utility - representing legal ownership rights to physical property subdivisions during specific weeks. Property NFTs (PNFTs) grant perpetual ownership of a timeslot, while Occupancy NFTs (ONFTs) provide access rights for specific years. These tokens enable transparent ownership records, simple transfers, automated rental payments, and governance participation - all while maintaining privacy through encryption.

NFTs & Tokenization

What NFTs does Blockstate use?

Blockstate uses two primary types of NFTs:

  1. Property NFTs (PNFTs): Represent ownership of a specific subdivision and week in perpetuity, plus governance rights;
  2. Occupancy NFTs (ONFTs): Generated by PNFTs annually, representing the right to occupy a specific subdivision during a specific week in a specific year.

What can I do with my NFTs?

Your PNFTs can be:

  • Held to maintain ownership of your property share
  • Traded with other members or sold to new investors
  • Used to mint annual ONFTs for occupancy rights
  • Used for participating in property governance through the DAO

Buying & Selling

How do I purchase property shares on Blockstate?

  1. Purchase Blockstate dollars (USDB) using debit/credit card, bank transfer, or cryptocurrency of your choice;
  2. Use USDB to buy property NFTs (PNFTs) representing your chosen subdivision and week;
  3. Receive your PNFT in your wallet, confirming your ownership and giving you the facility to sell, swap or access your property.

What is USDB and why is it necessary?

USDB (Blockstate dollars) is our platform's stablecoin with a 1:1 relationship to USD. Using USDB simplifies transactions, provides stability against cryptocurrency volatility, and enables faster, more transparent settlements on our platform.

How can I sell my property share?

You can sell your PNFT:

  • Through the Blockstate marketplace to other members, simply by clicking on the Sell button. This will list your PNFT on the Blockstate network at your offer price, making it publically available.
  • Through the Blockstate marketplace to a designated member. If you have negotiated a private sale you can still use the escrow functionality of the Blockstate Network to mitigate counterparty risk.
  • Directly to another person in a peer-to-peer transaction, by arranging payment by any means you choose and trusting the seller to transfer the NFT unilaterally.

Property Usage

How do I use my property during my designated week?

To use your property:

  1. Ensure you have the Occupancy NFT (ONFT) for the current year;
  2. Send the ONFT to Blockstate with a message indicating your intention to occupy (this is managed seemlessly on the platform);
  3. Turn up and enjoy your stay!

What if I can't use my property during my week?

You have several options, none of which need special permission:

  1. Rent it out and collect the income. You can either arrange it yourself or use Blockstate for a small commission;
  2. Swap with another member for a different week within the same property or a different subdivision or even a different property in the Blockstate network;
  3. Sell your occupancy right for that specific year (ONFT), using the Blockstate marketplace;
  4. Gift your occupancy to friends or family.

How do I rent out my property instead of using it, using Blockstate?

To rent out your property, you can use the Blockstate system to:

  1. Send your ONFT to Blockstate with a message indicating your desire to let;
  2. Blockstate will list your subdivision on platforms like booking.com and on the Blockstate network;
  3. After your rental period, you'll receive the rental income minus any applicable fees. This is all handled programmatically.

Governance & DAOs

What is a DAO and how does it relate to my property?

A DAO (Decentralized Autonomous Organization) is a blockchain-based entity governed by its members. Each property in the Blockstate network has its own DAO, where PNFT holders can vote on important property decisions, such as renovations, management changes, or potential sale of the property.

How does voting work in the property DAO?

Each PNFT includes governance tokens, with the number of tokens varying based on the initial value of your subdivision and week. More valuable fractions receive more governance tokens, giving their owners proportionally more voting power in DAO decisions.

Fees & Maintenance

What fees should I expect as a Blockstate property owner?

As a Blockstate property owner, you'll pay:

  • An annual maintenance fee that covers property upkeep and services;
  • Transaction fees when buying, selling, or trading PNFTs;
  • A service fee when renting out your property through Blockstate (percentage of rental income).

All fees are known in advance and can only be reviewed in accordance with the DAO governance, so there is no risk to share owners.

What does the annual maintenance fee cover?

The annual maintenance fee covers:

  • Regular property maintenance and repairs;
  • Cleaning and turnover services;
  • Security services;
  • Utilities and common area upkeep, including the swimming pool(s) if there are present in the property;
  • Platform technology and support services;
  • Local property management.

Who legally owns the property?

For legal and regulatory compliance, each property is owned by a local holding company. However, the economic benefits and usage rights belong entirely to the PNFT holders, and any proceeds from a property sale (as determined by the DAO) are distributed to the PNFT holders.

How is my investment protected?

Your investment is protected through:

  • Immutable blockchain records of ownership;
  • Legal structures that ensure PNFT holders' rights;
  • The governance DAO that prevents unilateral decisions;
  • Smart contracts that automatically enforce rights and obligations.

How does Blockstate protect my data and privacy?

Blockstate utilizes the Secret Blockchain Network, dedicated to preserving user privacy. This ensure all data, including transactional information on the blockchain, is end-to-end encrypted. Only parties directly involved in transactions can access the related information, strictly on a need-to-know basis. This zero-knowledge architecture ensures your financial details, property usage patterns, and personal information remain private while still maintaining the transparency benefits of blockchain technology for transactions that involve you.