Real estate staking
An overview of the most common questions received regarding BSPT staking on Oceanpoint.
Oceanpoint enables real estate owners to create an additional income stream. By tokenizing your real estate property you are now able to earn an emerging crypto currency. The best part? For a limited time, all tokenization costs are covered by Blocksquare.
Is the 6-month lock-up period mandatory when staking BSPT tokens?
Yes. Currently the contract is set to a 6-months term through which withdrawal of staked BSPT is not possible. After the lock-up period ends, you will be able to execute a withdrawal transaction and unstake your BSPT.
Why have you decided to issue 10,000 BSPT to an owner of a tokenized property?
Tokenizing 10% of a real estate asset's value seems the safest possible fraction and simplifies due diligence on the property title and capital stack structure. As a rule of thumb, real estate lenders (e.g. banks) usually require that the owner has at least 20% of equity in the asset. This means going for 10% mitigates potential issues and ensures we are tokenizing in the safest possible manner.
What is the amount of BST tokens I will earn per month when tokenizing a property worth USD 1,000,000?
It is hard to estimate your earnings rate, as monthly rewards per user vary depending on the BSPT holder's pool share. What is fixed is the amount of BST going into the BSPT staking pool, which is 250,000 BST / month. The larger the AUT (Assets Under Tokenization), the lower the amount of BST a user might receive.
The above is only a simulation and actual results might differ. Total rewards are subject to change depending on DAO governance rulings.
Monthly rewards per user vary depending on a user’s pool share. The larger the AUT, the lower the amount of BST a user might receive.
All rewards are paid out in BST and their USD value is subject to market conditions, however 1 BST will always be 1 BST.
Can I keep staking my BSPT tokens after the six months to continue receiving BST tokens?
In short, yes. After the 6 month period is over, you can also decide to keep staking, however, profitability might be much lower and your incentive might be shifted towards other pools on Oceanpoint. For instance, providing liquidity for both BST and POINT tokens will be greatly incentivised as liquidity is deemed the core feature of Oceanpoint.
How will I get compensated if I sell my BSPT tokens to Oceanpoint?
Selling BSPT to Oceanpoint will be possible with the release of v0.4 and subject to community due diligence. If one is selling 5,000 BSPT tokens of a real estate property valued at 1,000,000 USD, then Oceanpoint will compensate the seller with 50,000 POINT tokens, that can then be swapped into DAI, USDC or other coins via Uniswap, Balancer or other supported AMM pools.
1 POINT can always be used to buy 1 USD worth of BSPT tokens from Oceanpoint, as long as the purchaser has completed KYC and wallet registration for the issuer.
How will I get compensated if I organize a BSPT offering via Oceanpoint marketplace?
Token sales on the Oceanpoint marketplace will be possible only in exchange for DAI and subject to thorough due diligence processing.
How are valuations of tokenized properties done?
When BSPT are sold to Oceanpoint and/or other investors via token offering, the issuer shall maintain a valuation report not older than 12 months for the Real Estate property and make it accessible whenever requested to any existing token holder. The report should be executed by a licensed valuator registered with IVSC, RICS or equivalent organization.
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