The B4RE Utility Token

The B4RE token is designed as an exclusively utility-oriented token for use within the B4Real platform.

While it is inevitable that tokens operating on a decentralised ledger such as Polygon may and will be used by holders and the greater community in a variety of dApps and for a variety of purposes, it is intended that the inherent advantages of utilising the token within its native platform should be appealing enough to retain the vast majority of circulating supply within a stakeholder network.

A healthy token economy will be induced by harnessing two competing forces - the utilisation of the token in a transactional sense to induce dynamic liquidity within the market, and a staking mechanism that provides a tangible benefit for holders in the form of lowered APRs on loans as well as a yield in B4Real Credits (B4RC) which can be used as payment towards properties.

Firstly, sellers (agents, vendors and developers) will be incentivized to acquire B4RE by offering significant reductions on fees paid.

Subscription fees, which are intended to start as low as $500 if paid in AUD, will be offered at a reduced rate of $350 AUD equivalent if paid in B4RE.

Higher subscription tiers will attract similar levels of discounting if B4RE is utilised.

Similarly, costs associated with premium listings and increased reach and visibility will also be reduced if B4RE is the payment currency.

Finally, as part of settlement, sellers will be required to pay a fee of 0.6% of the total transaction when paid in AUD or other accepted currencies.

However, this will be reduced to 0.4% when utilising B4RE.

For those conducting high-volume and/or high-value transactions within the platform, this represents significant savings.

As outlined in the following section, ‘The Market’, B4Real’s pre-existing relationships with significant industry participants in the Australian property sector allow for a large quantity of real estate stock to be pre-submitted before the platform's hard launch.

As the digital economy continues to fluctuate and holders search for methods of diversification and securitisation of their digital wealth, it is anticipated that a large number of motivated buyers will be attracted to the platform as a unique and secure portal for entry into the property market.

This is projected to be compounded by the expected Australian governmental policies of the next few years, which are likely to incentivise immigration and foreign ownership in the light of COVID-19’s induced population immobility.

The second set of features are designed to counterbalance the dynamics of the first, by encouraging a larger pool of relatively lower-volume holders (buyers) to hold B4RE for extended durations (as opposed to sellers, who are a smaller pool of larger-volume holders who are encouraged to transact).

Access to buyer-oriented platform mechanisms is restricted to holders via a tiered system, in which holders of larger quantities are provided access to more advanced features.

Importantly, all B4RE staking and holding benefits will be assigned to buyers based upon the AUD value of the B4RE held, rather than the quantity, once the B4RE token is listed (prior to listing all B4RE will be assigned a value of $0.50 AUD within any smart contracts).

All value tracking and updating will be performed via automated API calls directly to exchanges. It is anticipated that this function will evolve towards utilisation of trusted oracle networks and data services such as Chainlink in the future.

Similarly to the staking contract floor price mechanism described in the section below, the tier requirements for B4RE holders will also benefit from a ‘floor price’ of $0.50 AUD, providing some degree of certainty for holders – particularly looking to utilise B4RE to assist with buying their first home. The tiers as follows:

1. Alpha Tier: the first benefit of holding B4RE for property buyers is access to exclusive off-market property listings.

As attractive property investment opportunities become scarcer, the ability for first home buyers or entry-level investors to enter into the market has become more difficult. It has not been uncommon over the past decade for new developments to be sold out to HNW or institutional investors before being listed for sale, or for families or retail investors to be priced out within the first few opening bids of an auction.

By providing direct access to our networks of property developers and agents, the B4Real platform seeks to remove yet another barrier to home ownership.

This opportunity also extends to access to Tokenised Investment Offerings, as outlined below in the section, ‘Tokenised Property Portfolios and Development Financing’. B4RE holders will have first right of refusal whenever new TIOs are launched. This also includes exclusive seed round pricing opportunities.

Alpha Tier holders will require either 1,000 B4RE or $500 AUD worth of B4RE (whichever value is lower) in order to access this tier. 2. Omega Tier: holding B4RE will also allow leveraged property buyers to stake their tokens in exchange for a lowered APR on their property loans.

In a simple sense, the general crypto economy encourages staking on platforms for a variety of reasons (PoS validation, liquidity provision etc) and through a variety of mechanisms - almost all of which reward the stakers with a return in the form of more tokens, whether of the same type that were staked, or another token. The B4Real platform intends to reward a particular class of holders - leveraged property buyers - for long-term staking, by offering to charge lower interest rates for those who lock up their tokens for the term of their loans.

Even a rate reduction of ten basis points (0.1%) over a standard mortgage term represents significant savings for borrowers, and therefore it is anticipated that this mechanism will prove attractive to buyers within the platform. Any mortgages offered via B4Finance will also contain options to increase the total loan facility in order to cover B4RE acquisition for non-holding buyers. B4RE held for the purpose of accessing improved mortgage interest rates will be effectively staked in the staking smart contract, the details of which can be found below in ‘The Staking Contract and B4RC’.

Holders who do not wish to participate in staking mechanisms will be able to lock up their B4RE in a separate non-custodial smart contract. The smart contract will also govern interest-reduction mechanisms and being non-custodial allows for borrowers to release their holdings early as required. This allows for capital withdrawal at the cost of mortgage APR increase in order to cover unexpected cash-flow requirements (or similar events), but also means that (subject to guidelines and requirements) borrowers can release capital should their deposits increase in value over time.

These mechanisms, taken in combination, will encourage extreme long-term staking (measured in years or decades), coupled with additional liquidity provision as required.

Omega Tier borrowers will be required to hold and/or stake either 5,000 B4RE or $2,500 AUD worth of B4RE (whichever value is lower). 3. Sigma Tier: the final tier for B4RE holders allows for the use of B4RC as a payment currency towards the acquisition of TIO assets (property fund/development tokens).

All Black Tie-operated funds will have allocations of up to 2% of the total token supply eligible for purchase using B4RC by Sigma Tier holders. The exact mechanisms of these purchasing options will vary, but may include lottery allocation for full B4RC payment, pro rata allocation based on holdings, or B4RC part-payment as a percentage of overall purchase.

TIO assets not operated directly by Black Tie Digital may have a small percentage of tokens allocated towards B4RC payment mechanisms. These allocations are projected to be not insignificant, and represent a very powerful opportunity for high-level B4RE holders.

Access to the Sigma Tier is restricted to holders who have performed KYC and are holding more than 20,000 B4RE or $10,000 AUD worth of B4RE, whichever is lower.

Liquidity will be funded by a flat 10% sacrifice of all fees paid to B4Real by sellers. This mechanism will be coded directly into the B4RE token, which will check the receiving address against a whitelist of pre-approved wallets, and automatically divert 10% of any fee-payment transactions back to a designated holding wallet.

The whitelist will be designated within a contract address which is controlled by a multi-sig wallet, with an association of key stakeholders possessing the private keys.

From there, half of the B4RE will be converted into the required trading pair, and the resultant liquidity staked on a DEX such as Quickswap. The resultant LP tokens will be secured in another multi-sig enabled wallet with similar distribution of private keys amongst key stakeholders, ensuring a healthy liquidity pool with minimal slippage.

A governance protocol will be developed to ensure that the liquidity is never removed except in situations requiring drastic rebalancing of the economy.

The token will be deployed on the Polygon network, providing for high-speed and low-cost transactions within a secure and trusted network. It is intended that only the LP-removal mechanism be coded within the token’s contract, resulting in a clean and widely accepted token.

The code has been audited by a reputable specialist blockchain cybersecurity firm (Quill Audits), with the results of the audit published on the B4Real website.

While the creation and utilisation of a liquidity pool on a DEX will allow for further staking and yielding opportunities for holders, and the nature of decentralised finance will provide other avenues to leverage and utilise B4Real holdings, it is anticipated that the design of the platform, coupled with the strong utility of the token and the intended targeted marketing to holders with a vested interest in the functionality of the platform, mean that the greater percentage of the circulating supply should remain within the B4Real economy and utilising B4Real facilities and mechanisms.