What is Dominium Project?
What is Dominium Project?
Dominium is a multi-lingual property platform that uses blockchain technology to the benefit of property developers, financiers, owners, investors and managers by providing a single, decentralised, regulated marketplace for all property related activities. Dominium is leveraging third generation blockchain technology to modernise one of the most established yet antiquated industries in the world. It is an international platform on which regulatory documentation for property funding is standardised, and assets are placed on the blockchain alongside property sales, rentals and management.
The Dominium platform is built on an Ardor child chain. This child chain decentralises the trade of assets and places rental agreements, purchase agreements, property management tasks, and more on the blockchain. After obtaining the required regulatory licenses, this will allow companies to create regulatory compliant assets, with standardised documentation (provided by Dominium’s legal teams), which can be purchased by the Dominium account holders.
By placing property finance, listings, and property management on the blockchain and by providing a multi-lingual platform with standardised regulatory compliant documentation, the market is opened to multiple nationalities, affordability levels and listing agents. Real estate finance, management, and trade are thus facilitated and simplified.
Dominium offers two main platforms as services. The first platform is for investing in real estate. Investors can participate in the market with as little as one share or token, opening up real estate investment to anyone through the decentralised Asset Exchange. This will allow fully liquid peer-to-peer fund trading between investors without the need of a fund manager or third party. Obviously, all users need to be identified and whitelisted to ensure adherence to jurisdictional regulation.
The second platform offered by Dominium is a utilisation of blockchain technology for managing individual properties. Property managers, tenants, agents, and real estate professionals can record information on the blockchain. As a result, this fully decentralised information is truly transparent, impenetrable, and unchangeable by parties interested in recording information to their benefit. Full property and renter transparency, with blockchain handling the bulk of the recording work, will make every part of the property management and rental business smoother and more advanced.
How Does Dominium Work?
In order to engage in the real estate industry, Dominium must comply with basic governmental regulations. Specifically, it is necessary to comply with know-your-customer (KYC) and anti-money laundering (AML) laws.
Consequently, participators in Dominium must register with the platform in order to unlock full platform functionality.
The verification process has three clearance levels and includes the providing of:
- Email address (CL1)
- Mobile phone (CL1)
- Valid ID (Passport, Photo ID, Driving license) (CL1)
- Recent proof of address (such as utility bill or bank statement) (CL2)
- Tax Identification Number (TIN) (CL2)
- Bank account details in the name of the account holder (CL2)
- Self-Certification of HNW status or Investor Type status (CL3)
Companies may also create a tokenised asset (or security) on the platform. Platform Administrators verify these companies after complying with a slightly different set of verifications, which vary somewhat by country.
Verified details will usually include:
- Company details (certificate of incorporation, memorandum of articles, etc)
- Company registration number
- Company registered address
- Contact person position at company
- Contact details of company (telephone, email, address, website)
- Contact details of the contact person
A Platform for Investing in Real Estate:
Traditional private real estate funds suffer from a few drawbacks: they are illiquid, typically requiring that investors tie up large sums of capital for years; they are often accessible only to institutional investors and high net worth ($1M+) individuals; and, while government regulations usually require fund managers to make certain disclosures about their funds and the assets they hold, these funds are not always as transparent as they could be.
Publicly traded real estate investment trusts (REITs) and similar instruments address some of these problems but also have their own complications: listing a fund on a large stock exchange is expensive and usually entails complying with a slew of extra regulatory requirements, and smaller funds that cannot benefit from economies of scale often charge correspondingly higher fees.
Dominium aims to address these problems by moving the creation, financing, management, and trading of real estate funds to the Ardor blockchain. Companies will be able to issue assets in Ardor’s Asset Exchange representing shares of their funds, and will sell them directly to investors to raise capital for purchasing properties (equity funds) or for making loans for the purchase or development of properties (debt funds). As these activities earn revenue, fund managers will be able to pay dividends to investors using Ardor’s dividend payment feature.
This approach has several advantages. Investors will be able to enter for as little as the price of a single share and will be able to exit whenever they wish. Fund managers will have access to a wide cross section of investors, including ordinary retail investors, on a single platform and without having to deal with brokers. Meanwhile the blockchain will automatically handle the logistics of tracking who owns shares of a fund and what dividend payments they are owed. It will also provide a liquid marketplace for investors to trade shares of funds peer-to-peer without fund managers having to incur the costs of listing on centralized exchanges.
This picture looks a lot like the fulfillment, at long last, of the Asset Exchange’s immense potential. And yet, if this were all there was to creating and trading funds on Dominium, the project would have failed before it even hit the mainnet.
I say this because governments heavily regulate securities of all kinds, and real estate funds launched on Dominium will certainly be no exception. Regulatory compliance is a difficult subject for many blockchain-based projects, but Dominium, using features of the Ardor platform built specifically for this purpose (more on that below), has been designed to accommodate the demands of securities laws.
First and foremost, the Dominium child chain will be a permissioned chain, meaning that accounts will not be able to transact on it without first registering on the platform. This allows Dominium to collect sufficient personal information to comply with know-your-customer (KYC) and anti-money laundering (AML) laws. Any user who wishes to be able to trade shares of real estate funds, for example, must provide his or her name, email address, phone number, and date of birth, plus a picture of a government-issued photo ID, a picture of the user holding the ID, a proof of the user’s current address, and a proof of the user’s tax ID number. On Dominium they classify this as Clearance Level 2 (see below for more details about clearance levels).
The purpose of collecting this information is to firmly tie each user’s real-world identity to an account authorized to transact on the Dominium child chain (though, of course, this information will not be made publicly visible on the blockchain). Fund creators thereby know exactly who is purchasing their shares, and they can demonstrate to regulators that they have taken proper precautions to prevent money laundering and the financing of crime.
Importantly, compliance with KYC and AML regulations necessitates a degree of centralization. Not only must the identities of all participants be verifiable—a problem which is quite difficult to solve in a decentralized way—but it must be possible to forbid certain users from accessing the platform, and it must be possible to revoke other users’ access if they are later determined to be involved in criminal activity. Perhaps it will one day be possible to satisfy these criteria in a decentralized way, but for now, they require a central authority who verifies users’ identities and determines who is eligible to participate.
You might be wondering, then, why Dominium is interested in using a blockchain in the first place. Many blockchain enthusiasts, myself included, tend to take a hard line on decentralization, and compromising even a little bit on this criterion in order to achieve some other goal (e.g., scaling) immediately raises our suspicions that a centralized database might be a better tool for the job. More on this question below, but for now, suffice it to say that regulatory compliance is a real issue, that Dominium is taking it seriously, and that the result will necessarily include at least some elements of centralization. This is reality, and blockchain diehards will need to accept it or else renounce our ambitions to create new financial instruments.
One other aspect of Dominium’s approach to regulatory compliance that is worth mentioning is the company’s plans for creating standardized templates for certain legal documents. Specific requirements vary by jurisdiction, but generally fund creators must produce at least a prospectus, which often contains a rather small amount of important, fund-specific information interspersed with a generous helping of legal boilerplate. Dominium will hire a law firm in each jurisdiction where funds can be created to prepare standard templates for the prospectus and other legal documents that fund creators can use to comply with local securities laws. This is one of the primary ways that Dominium aims to streamline the fund creation process and to keep fees low.
Token Sales Detail:
PreICO Price: 1 DOM = 0.05 EUR
Price: 1 DOM = 0.25 EUR
Accepting: BTC, ETH, BCH, LTC, BNB, NXT, ARDR, IGNIS, Fiat
Minimum: investment 100 DOM
Soft cap: 2,500,000 EUR
Hard cap: 92,500,000 EUR
Whitelist/KYC: KYC & Whitelist
For more information:
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=1885373