How AssetSlices Earns Revenue
The numbers such as fees shown below are for information purpose. It will change in real scenario and will be decided and confirmed with voting among DAO members.
How AssetSlices Earns Revenue Through Fees
AssetSlices operates as a platform that manages the entire lifecycle of real estate investments, from tokenization to property management and eventual sale. The platform earns revenue by charging fees at different stages of the process: token purchase, property management, and property sale. Here's how these fees work:
1. Fees During Token Purchase
When users like Bob purchase tokens on the AssetSlices platform, the platform charges a fee as a percentage of the transaction amount.
Example: Token Purchase Fee
Token Price: $1 per token
Bob’s Investment: $10,000 for 10,000 tokens
Platform Fee: 2% of the transaction value
Calculation:
Fee: 2%×10,000=$2002\% \times 10,000 = \$2002%×10,000=$200
Total Cost to Bob: 10,000+200=$10,20010,000 + 200 = \$10,20010,000+200=$10,200
Bob still receives 10,000 tokens, but the additional $200 goes to AssetSlices as revenue.
Purpose of Fee:
Covers operational costs like blockchain token creation, marketplace maintenance, and transaction processing.
Funds future platform upgrades and marketing efforts.
2. Fees for Property Management
AssetSlices handles property management tasks, including tenant sourcing, rent collection, maintenance, and legal compliance. The platform charges a recurring fee for these services, typically deducted from the rental income before distribution.
Example: Property Management Fee
Total Annual Rental Income: $100,000
Management Fee: 10% of rental income
Calculation:
Fee: 10%×100,000=$10,00010\% \times 100,000 = \$10,00010%×100,000=$10,000
Remaining Income for Distribution: 100,000−10,000=$90,000100,000 - 10,000 = \$90,000100,000−10,000=$90,000
Impact on Bob:
Bob owns 1% of the property and is entitled to 1% of the distributed income.
Bob’s Share After Fee: 1%×90,000=$9001\% \times 90,000 = \$9001%×90,000=$900 annually.
Purpose of Fee:
Covers costs for managing the property, including staffing, repairs, utilities, and legal compliance.
Ensures the property remains profitable and well-maintained.
3. Fees During Property Sale
When the property is sold, AssetSlices charges a fee as a percentage of the sale price. This fee compensates for the platform’s role in facilitating the sale, including marketing, legal processes, and managing distributions to token holders.
Example: Property Sale Fee
Sale Price: $1,200,000
Platform Fee: 5% of sale price
Calculation:
Fee: 5%×1,200,000=$60,0005\% \times 1,200,000 = \$60,0005%×1,200,000=$60,000
Remaining Amount for Distribution: 1,200,000−60,000=$1,140,0001,200,000 - 60,000 = \$1,140,0001,200,000−60,000=$1,140,000
Impact on Bob:
Bob owns 1% of the property and is entitled to 1% of the net sale proceeds.
Bob’s Share After Fee: 1%×1,140,000=$11,4001\% \times 1,140,000 = \$11,4001%×1,140,000=$11,400.
Purpose of Fee:
Covers marketing and administrative costs for selling the property.
Funds platform growth and additional investments.
Fee Summary
Stage
Fee Percentage
Purpose
Token Purchase
1–3%
Covers tokenization, platform maintenance, and blockchain transaction costs.
Property Management
5–15%
Funds property management tasks like tenant sourcing, repairs, and compliance.
Property Sale
3–7%
Covers legal processes, sale facilitation, and marketing efforts.
How Fees are Integrated Transparently
Upfront Disclosure:
All fees are disclosed in the property’s listing details on the marketplace.
Users know the exact percentage deducted at each stage before making any investment.
Blockchain Transparency:
All fee deductions are recorded on the blockchain, allowing users to verify transactions.
Smart contracts automatically execute fee deductions, ensuring accuracy and trust.
Proportional Impact:
Fees are distributed proportionally among all token holders, ensuring fairness.
Bob’s Complete Investment Journey with Fees
Investment Stage:
Bob invests $10,000 in tokens and pays a 2% purchase fee ($200), making his total investment $10,200.
Income Distribution:
The property earns $100,000 in rental income annually.
AssetSlices deducts a 10% property management fee ($10,000).
Bob receives 1%×90,000=$9001\% \times 90,000 = \$9001%×90,000=$900 annually.
Property Sale:
The property is sold for $1,200,000.
AssetSlices deducts a 5% sale fee ($60,000).
Bob receives 1%×1,140,000=$11,4001\% \times 1,140,000 = \$11,4001%×1,140,000=$11,400.
Why Fees Are Important
Sustainability:
Fees fund the platform’s operations, ensuring continuous improvement and longevity.
Professional Management:
Property management fees guarantee the asset’s upkeep and profitability.
Growth and Innovation:
Revenue from fees supports platform growth, marketing, and new features.
Conclusion
AssetSlices’ fee structure ensures a fair balance between revenue generation for the platform and profitability for investors like Bob. By charging small, transparent fees at critical stages—token purchase, property management, and property sale—the platform sustains its operations while providing users with professional services, secure transactions, and lucrative returns.
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