Welcome to the 264 subscribers who have joined us since last week! Join The Daily DAO community today for free by subscribing below and getting access to our daily newsletter and future informative products… Thanks for your support!
The first generation of NFTs was primarily digital art PFPs (profile pictures) made famous by the original cryptopunks and Bored Ape Yacht Club with no real underlying value besides the promise of a roadmap from the founding teams. These NFT projects attracted celebrity investors and went viral. From these successes came many other copycat projects trying to capitalize on this strategy and get their piece of the NFT investor FOMO gold rush before it died down. While there have been, and still are, other successful PFP projects time is running out on this first-generation use case. Too many projects have been abandoned by founders, too little value has been delivered, and investors want something that is actually backed by an asset with value. Welcome to NFT 2.0 where NFTs will be backed by real-world assets giving them REAL value and not just a promise from an anonymous team on what will be delivered. Balcony DAO and its team of experienced real estate professionals believe real estate is the logical place for this new asset-backed NFT trend to start.
Real estate is one of the oldest and largest asset classes, it has a global market cap of $326.5 trillion as of 2020, but as an investment opportunity it has historically been inaccessible and illiquid to your average investor. Balcony DAO, founded by John Belitsky and Dan Silverman, who combined have over 30 years of real estate experience and have a large real estate network to leverage are looking to change that.
The goal is to be a web3 investment bank that provides crypto financing solutions for real-world assets. The DAO is still less than a year old but is starting to make headway on its roadmap.
Roadmap
Balcony Deed NFT - March 2022
This NFT costs .1 ETH and there are currently 1,737 remaining of the 2,900 total supply.
Benefits
Whitelist priority and a 30% discount on Balcony Assets Club NFT
Access to a gated community and pre-launch events
Balcony Assets Club (BAC) - Q3 2022
Balcony Assets Club (BAC) is a decentralized autonomous organization (DAO). The members-only community consists of passionate investors, real estate professionals, and crypto enthusiasts. BAC members are able to access alpha, move between the worlds of real estate and crypto, collaborate with one another, and build intergenerational wealth through investment in quality real world assets (RWA’s). BAC provides an easy on-ramp for the crypto community to invest in real estate while still maintaining exposure to crypto.
Real Estate NFT Assets (reNFTs) - Q4 2022
reNFTs are the digital analog of traditional real estate. Balcony’s reNFTs will represent equity ownership in a real world, income producing asset.
All real estate data is stored within each reNFT on-chain, streamlining due diligence and the property transaction process.Government organizations will migrate official record keeping onto the blockchain to recognize digital deeds and titles as proof of ownership.
Real Estate NFT Marketplace - Q2 2023
The Balcony marketplace is a two-sided market where all reNFTs are traded with cryptocurrency. It’s where OpenSea meets Zillow.
Increase liquidity by broadcasting supply and build a large portfolio of cash flowing assets with reNFTs.
Unlike traditional NFTs, the value of the reNFT is supported by the underlying real estate, creating a concrete floor price.
This to me is the most exciting opportunity that Balcony DAO is undertaking. NFT marketplaces (Opensea, Magic Eden) do not have any clear direction or consumer base to which they create the user experience, leaving the door open for niche marketplaces to gain market share for passionate communities. Being able to create a marketplace specifically for real estate NFTs where every user touchpoint is optimized for this specific group will give Balcony DAO a tremendous advantage over any marketplace that just looks to offer this new group of NFTs as one of the many options on its platform.
While still in the development phase Balcony DAO has been able to make headlines with plans to issue the first-ever $13 million real estate NFT for a 31-unit development property in Long Beach, New Jersey. Each condo unit will be tokenized and offered for sale to the public in the form of an NFT. Balcony Asset Club NFT owners will have early access to these types of deals.
Real estate provides web3 with a chance to create use cases that help onboard the next wave of users and silence the critiques that claim there are no benefits to the technology web3 offers. Fractionalized real estate, increased liquidity / accessibility, improved transparency, and cheaper / quicker financing are all options that any real estate investor or developer would love to have at their disposal.
We have covered several other web3 real estate initiatives and are continuously excited by the prospects they offer of establishing legitimate use cases.
Lofty.ai which fractionalizes multi-family rental units and allows investors to benefit from property appreciation, earn rental income, and gain tax benefits from property depreciation.
Parcl, which allows users to invest in the underlying price movement of different real estate markets like SoHo, Miami, or Williamsburg.
CitaDAO, brings real estate assets on chain and allows users to earn yield by providing financing and allows for increased liquidity through the use of automated market makers (AMMs) for real estate tokens.
We will continue following Balcony DAO as they transition from the development to the execution phase and are excited to see the innovations this community brings to the space. If you are interested in the intersection of real estate and the next frontier of technology this is definitely a DAO you should check out.
Learn More!