Thread by @NataliePropy

Zillow stopped buying homes. Opendoor is very loudly thrilled. Propy quietly launches Whitepaper 2.0. propy.com/browse/propy-w… See below why it matters and what the future of real estate could be.

2/ Let’s step back first. Zillow couldn't grow any further as a listing platform. So the logical step was to tap into the transaction. They:
1. Launched the ability to flip homes copying Opendoor.
2. Launched a licensed brokerage competing against their paying customers - agents

3/ What about Opendoor? Their way to be in the transaction is becoming a party in it - the buyer. Thus they don't have to convince agents to adopt the tech. Great strategy; Wallstreet loves them. But the volume of the transaction is low; it's in the range of the volume at Propy.

4/ The only reason Wallstreet loves Opendoor and other buyers is because their volume goes through their balance sheet ($4-5bn a year). But it gets in and out, almost like escrow.

btw, do you know what’s iBuyer?

5/ Propy is automating the whole transaction focusing on building protocols on smart contracts and remain agnostic. We're not a brokerage. We've been focused on building a system of oracles for smart contracts - banks, title plants, e-recording, etc.

6/ The Whitepaper 2.0 illustrates how the future crypto-enabled ecosystem for real estate could work. How properties could be sold instantly as NFTs. How evaluation, price discovery, title insurance and mortgage can be crypto-enabled and DeFi centric.

7/ The easiness of the transaction will inevitably and significantly increase the liquidity of home sales. The agent commission is going down already because of the DOJ lawsuit and the consumer pressure. Currently the consumer spends ~10% of the property price to buy/sell a house

8/ The transfer loss may decrease from the current 10% of the property price to 2% as follows: 1% for protocols and gas fees; and 1% for agents. Liquidity will jump 10x because it won't be that difficult and expensive to sell, buy and move.

9/ Instead of 5m home sales per year there will be 50m sales. Agents will spend 10 quality hours per transaction on solid professional tasks, rather than 100 hours spent on pleasing customers beyond transactions, like babysitting for kids, dinners, buying flowers, knives as gifts

10/ Suppose brokerage market cap is $80bn, which is 5% agent commission. With 1% agent commission and 10x of the volume, it would be a $160bn market.

11/ Now the other 1% goes to protocols, front end and gas fees. That's $160bn going to the on-chain network. Not corporations like Zillow, or governments that cannot keep our homeownership records safe, or banks that allow for wire fraud to happen.

12/ Instant homeownership transfer is a bookcase example of a Blockchain application. Once the theory turns into practice, it's a massive revolution in the sector. This time anyone can be part of it and earn from it.

13/ The essence of real estate NFT - one can transfer homeownership from one wallet to another. We’re present a framework for the “trustless” frequent trade of ownership rights to real property, via the “encapsulation” of those rights into an NFT.

14/ The real estate asset is behaving like a digital asset because the ownership of the asset is already digitized; furthermore, the paperwork for the ownership transfer is also mostly digitized. This is why it’s a perfect asset to be NFT-ed.

15/ There are three Ways to Transact Real Estate on Propy:

1.Traditional deals on smart contracts using fiat payments and mortgages

2.Crypto payment - Bitcoin, Ether, XRP and other cryptocurrencies can be accepted in a transaction on Propy.

3.NFT-ing a real estate asset

16/ Why Would Someone NFT Their Property?

1.Royalty fees and innovation


2.Crypto adoption and easiness of a transaction


3.Collectible real estate

17/ As properties will be transferred as NFTs between wallets, agents and sellers who will connect the property to the on-chain environment will receive small royalty fees from the secondary sales.

18/ Propy NFT marketplace. The current NFT marketplaces are not allowing KYC-ing users. In real estate however we need to know the real names of the buyers. Propy marketplace requests names and addresses of bidders to further secure instant ownership transfer.

19/ Propy tokens are an essential part of ownership transfer in Propy Registry for any type of transaction (in $, in crypto or as NFT). Tokens are an integral part of the “learn-&-earn” approach for market participants to incentivize them to join the network and contribute data

20/ One can borrow stable coins or cryptocurrencies against their NFT-ed home. This unlocks “crypto mortgages” and “crypto HELOC.” A “crypto-insurance fund” is the next piece that the industry will require. To make the crypto mortgage scalable,  “crypto appraisal” will be needed.

21/ NFT, DeFi, crypto title insurance, and crypto appraisal will create a full cycle for the new age of liquid real estate. Propy is committed to creating this revolution with its own technological and legal solutions as well as via PARTNERSHIPS. Propy can only do as much.

22/ Propy aims for a fully decentralized marketplace for real estate. This means that the market participants will own the network. All files will be stored on a distributed storage at the next stage, so operation of the network will not depend on one private or public company

23/ Did you read the entire thread? Amazing! Get in touch with us it you’d like to be a part of this movement.