Introducing MetaWealth for LFG launch - Standardizing RWAs on Solana

[Prospero]

We are MetaWealth, an RWA company that focuses on luxury real estate. This year’s expansion will standardize RWAs on a protocol level and give them enhanced liquidity via a liquid-staking solution. This would allow non-cryptomotivated retail investors and crypto-native traders to diversify their portfolios on-chain.

MetaWealth started out with a simple thesis that democratizing real estate investment is a net positive for the world. Here is a little recap of what we’ve accomplished so far:

• Tokenized over 100 properties
• Distributed over a quarter million USDC in rental yields and bonuses
• 30M in assets under contract
• Investors from 23 different countries

This post is shortened for brevity. Long-form here (Please do give it a read, I think it will give you more context on why what we’re doing is so important).

What’s next?
Given our commitment to decentralization, we also want to provide an answer to fragmentation before it happens by creating a new protocol-level standard for RWA liquid staking. Backed by real-world assets, these tokenized assets can be staked for a percentage value of the collateralized asset, letting the market participate in RWA investment and stay semi-liquid. This advantage is that one protocol, overseen by a DAO, can effectively onboard and create a robust ecosystem.

In tandem, we’ll continue to tokenize real estate and offer a stress-free experience when it comes to investing in real estate.

Describe your project in five sentences:
MetaWealth connects investors to developers, taking care of all the due diligence, sourcing, and deals so everyone can invest in real estate. With the ability to invest in real estate for as little as 100 USDC, tokenization provides transparency, ease of access, and peace of mind. Think of us as AirBnB meets Robinhood. Additionally, we’re making a protocol-level solution for RWAs to allow everyone to access RWAs, not just real estate. This means you can invest in physical assets while staying liquid!

Our Team
Our team has been through the start-ups, real estate arena, and crypto for several years.

Amr Adawi | Co-founder
Amr has been a chief architect and developer at FinTech startups with $8B in assets in the past and has built B2C startups from the ground up. Amr is thrilled to bring his +7 years of expertise to maximize MetaWealth clients’ financial potential using cutting-edge technology. Previously, Amr was a Senior Engineer at a start-up that was acquired by Mark Zuckerberg.
Twitter: https://twitter.com/maveridd

Darren Carvahlo | Co-founder
Darren was a former Vice President at Goldman Sachs’ New York office, working with the Investment Banking and GS Growth Equity groups to advise and evaluate the firm’s existing and potential portfolio companies and clients. Previously, he was a technical architect at TD Bank, building and deploying AI/ML applications firm-wide.

Michael Topolinski | Co-founder
Michael has built a real estate development company and portfolio for the past 35 years. InteRo, his company, acquired and developed assets worth over $300 million. Michael is leveraging his expertise in real estate to bring financial success to the next generation of investors and help usher in a new era of web3-enabled real estate fractionalized investing.

Prospero | Web3 Specialist

Prospero has five years of experience in crypto, leading strategy, advising, designing tokenomics, and weaving narratives. With a sales background working with telecommunication giants like AT&T, T-Mobile, and Verizon, Prospero brings a formidable wealth of experience across multiple industries and disciplines.

Jupiter Ecosystem and Us
We’ve been users of Jupiter, most of us after deciding on Solana, and some of us going back to 2021. We’re fans of DeFi, and the smoothness and speed of Jupiter is something that we respect. Having participated in LFG votes, we also recognize the community and userbase that has also shaped what Jup.ag has become today.

With our $AUM plans involving LPs, we know that the majority of AUM flow will be directed through Jupiter.

In the future on the MetaWealth side, since we payout rent and bonuses in USDC, we also want to integrate Jupiter to allow anyone to claim in whatever currency they want.

We’re also fans of what Zeus did, rewarding voters with a claim on TGE day, and we want to do the same. We believe that $AUM is the first step in giving users, holders, and degens a stake in Real Estate, and the benefits that come with it.

We are aiming for TGE to be in late August or early September

Vision
Our success will bring about the standardization of RWAs and place Solana on the map as a leader in tokenization. It would also give more people a stake in whatever they do. One of the underlying factors in someone starting to invest is stake. Not our type of stake, but people are going to invest in what they know.

RWAs are not only just tokenized assets, but can be for tokenizing rights to a certain market. We can imagine a future where you can build a perpetuals platform with a unified liquidity layer where garbage collectors could short how much plastic would be collected that week or teachers longing the amount of pens lost that week. We already have a platform operating under this idea: PARCL. We like PARCL for this reason. They brought attention to Real Estate and demonstrated that creating an EoT market is sustainable and profitable for users.

By building a protocol where tokens are standardized and liquidity is unified, it fully allows for RWAs to enter their Economy of Things (EoT) era and give a global audience unprecedented access to investment in what they know.

Our biggest challenge has always been compliance. As we fully operate under Spanish law, selling our tokenized assets as a security, it’s more about the speed of adoption and how fast government institutions can accommodate.

Launching a token is no joke. Besides the legality of a full launch, there’s also the private investment aspect of it. We care about our community and everyone who will join it, so we opted not to go with any VC for funding, as it would reduce our ability to maneuver as we enter web3 fully. We worked on the tokenomics and the ecosystem that’s being built, being challenged by co-workers, close friends, and advisors constantly about a need for one, but eventually arriving on our launch product.

The biggest piece of advice is really figure out if you need a token. If you don’t or didn’t need and were pushed into it, you don’t need one.

Post Script
Got some feedback today that the tokenomics might upset some people, and I take that into consideration with everything that’s being posted here. Like I said in the long post, it’s been edited and refined over the past half year, so with the feedback we’re going to be getting after this post and our TGE aim being a couple months from here, there’s plenty more time to refine it.

Looking forward to hearing all your thoughts!

Appendix
Website: https:/metawealth.co
Webapp: https://app.metawealth.co
Twitter: https://twitter.com/metawealth
Discord: https://discord.gg/EqcE6FhJNw
Telegram: https://t.me/metawealthapp
LinkedIn: https://www.linkedin.com/company/metawealthapp

[MeowZe]

I love this and will look into it more later. A few thoughts just from the proposal… it seems like theres a few things that metawealth is focused on: providing liquidity to re developers (this is particularly prescient right now), fractionalizing real estate property (this seems like its bringing reits to defi but it would be kul if you could stake with individual properties or developments as opposed to portfolios), and maybe prop tech integration. Its not entirely clear from this list why you would need a separate token unless it is somehow enabling defi mortgages and finding savings in origination fees or interest rates. tracking property records and aggreements on chain seems like not enough to justify a token but i guess id be curious to hear more about the advantages. This seems like a crowdfunding approach built on blockchain and id be interested to hear if there are any specific advantages.

Not sure if there are tax credits involved in the proforma but i always thought there should be a better marketplace for tax credits.

Anyway, interesting project! And i look forward to digging into this.

[MeowZe]

Thinking a little about this… US is seriously considering stable coin legislation. Would this onchain liquidity make defi mortgages more competitive?

[Prospero]

On-chain liquidity would certainly be more competitive, but we already have private equity credit on SOL through Maple Finance. I envision that funds could expand debt credits on-chain, but a more interesting aspect of it would be more peer-to-peer loans where anyone can set rates and terms, similar to how RainFi does on their NFT loans.

I can’t comment about the legality of those things, but things do seem to be moving in the right direction in the US.

[Prospero]

The platform that’s currently running is for wealth management via real estate. By targeting retail in a manner that benefits them and developers, it reduces adoption friction. Part of the simplification process is more about streamlining and reducing other metrics that might complicate things, which is why we bundle apartments and villas into asset packages, and that also makes it easier for us to offer the best rates because it’s in the developer’s best interests.

A separate token is for liquid staking the asset tokens, so collateralization of fractional real estate is possible, and then further expanding that out to other RWAs. So you’re right on the mark for DeFi mortgages.

[MeowZe]

…Leaning forward… very… interesting. I suspect i eill be far from the only one watching how this develops.

[Prospero]

I appreciate your kind words. Looking forward to being on this journey with you and everyone else.

[1Cr0wn]

I really like the idea of this, and it brings an interesting dynamic into the space. Reminds me of REITs from the hard cash world. A few questions I have after doing some research into you guys:

1. is there proof of ownership for the properties somewhere?
2. how are the properties managed?
3. the projected timelines for selling the asset (2 year or 5 years), how is this decided and why? Wouldnt you want to keep the hard asset to continue reaping the rewards? Is it simply to generate a higher return for investors (which is dependent on someone else buying the asset)?

I may have a few more questions about the project. I know these aren’t directly related to Launchpad proposal, but will help me understand the foundation for the project as a whole. Thanks!

[Prospero]

Hey, thanks for looking into us!

1. It can be found on the app with the SPA documents (Sales purchase agreement).
   

   
   
   https://app.metawealth.co/assets/d7fd41b5-fbd6-464a-8d34-359b06203448
   We do these for all of our assets.

2. Each standing property has an assigned asset manager who takes a 5% cut from the rent, maintains the property, and collects the rent. MetaWealth currently selects the asset manager, but in the future, each asset package’s holders can vote on which asset manager they want to have.

3. It depends on the project; we aim to sell pre-construction assets in less than two years and some assets even in 1.5 years. We also take a hybrid approach, selling partially for a big exit ROI and then holding some for rental distributions. For standing assets, the asset token holders decide when to sell. They can hold a vote and sell once we have the voting infrastructure ready, in which MetaWealth brings offers from the market for the asset token holders to accept.

If you have any other questions, we’d love to hear them.

[1Cr0wn]

I appreciate the reply, and everything you said makes a lot of sense and answers the other questions I had. Especially when it comes to the difference between a standing revenue-generating rental and the pre-construction assets. Making that distinction is a good call, helps lower risk, and should help the project be successful.

Excited to see where this goes! I would like to support the project here but will probably participate in funding as is as well.

[frantic1]

How would you compare your product to Fundrise?

Real estate isn’t exactly liquid. How often/how much can a person liquidate their tokens?

[julianhzhu]

Gave this a quick scan… Looks great to me.

Looking forward to joining the AMAs on this one.

[Prospero]

Conceptually, we’re like Fundrise in the sense that we crowdsource properties. But we differ in the fine print.

Things like low investment thresholds are common across many platforms like ours, which is great.

Fundrise has a 5-year head-start on us, so I think they have quarterly redemptions, but they penalize you for redeeming early (within 5 years).

The key difference is that we’re blockchain based. So, while they’re really transparent, there’s no comparison in terms of seeing what’s happening to funds and tokens.

While it’s not currently possible to sell MetaWealth tokens on secondary markets, we’re taking a half-measure to push the RWA space forward by giving investors the ability to collateralize their tokens via our LST.

I’m very much in the camp, and if you can utilize your real estate and stay liquid, you’ll be more likely to hold the real estate. Since we have property managers for our rental properties, it’s a good cash flow MoM, plus the value of AUM in LPs or swapped into USDC for other gains, giving more incentive to hold.

Obviously, not being able to sell to non-KYC investors is also a major hurdle that we have to overcome, and that’s one of the major blockers for this space. However, this can be addressed effectively with token extensions. It just takes time.

[Prospero]

I’m looking forward to AMAs, too. I love to talk about this stuff a lot.

[miskeri]

Hi, there, really like what I read, especially in the last 2 pages of the long form!

I had a couple questions about the governance portion and tokenomics:

1. What exactly is being governed? And how would it work?

2. With the tokenomics, are there more specific breakdowns for the category? Some places feel vague.

Thanks for answering in advance!

[c2yptic]

RWA’s is probably going to be a big thing in the future, and seems like the ecosystem is just starting to scratch the surface on the possibilities with RWAs.

Thanks for a good presentation, and must say that your value prop is very fascinating!

You seem to have covered a lot of ground already. Is the app working? Can I try to buy RWA’s on-chain already through the app of yours?

[1Cr0wn]

So i got their app shortly after I posted, getting access was relatively simple, and i was able to invest in one of their pre-construction assets. UI is simple and easy to understand, all the information you need is available on each asset page.

What i am waiting to see is 1) what happens if/when the original funding target is reached. At the moment it looks to me that if it isnt reached the crowfunding continues indefinitely (this are my observations based on a short time period). 2) im not sure how that works for an agreement to purchase a RWA, or if there is some kind of termination if ths target isnt reached.

All good questions the team here can answer for us

[Prospero]

Hi @miskeri, sorry for the long response time, I didn’t get an email for this reply.

So, governance will be more detailed in the future, but in essence, the governance portion covers a wide range, from council elections to working group formations to setting LP fees.

I understand that some parts of the tokenomics are a bit vague, but we are consistently updating them. There’s a revised version up on the long form now, and it labels a few things a bit better.

[Prospero]

Hi @c2yptic thank you for your kind words.

Our app has been live and working for over a year now. The public release is still only on Ethereum, but our Solana version is almost ready to go with a few front-end fixes and the introduction of non-custodial wallets.

You can go here and buy!

[Prospero]

When the funding target is reached, the smart contract is locked, so it can’t issue any more tokens, marking that the raise is fully concluded. So far, we’ve had fully successful funding with an average of 100 days.

The crowdfunding does not continue indefinitely, there is an actual expiration date to them.

The target isn’t the end all be all, since we bundle multiple properties into one package. For our current one in Spain, it consists of 4 villas, and you can actually see the progression of how far the funding is here:

We do have mechanisms in place for a refund if the property is never completed or some disaster happens.