# Tokenization Process

## Tokenization Process

### Overview

At DeMonopol, tokenization transforms real-world assets such as premium real estate and automated income-generating businesses into on-chain, tradable digital assets. This process ensures secure ownership, global accessibility, and yield distribution through smart contracts and compliant legal structures.

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### 1. Asset Selection & Legal Setup

#### ✅ Identify the Asset

* Type: real estate, vending machines, car washes, etc.
* Location: high-yield, high-occupancy zones
* Risk and return analysis completed by experts

#### 🏛️ Legal Structuring

* Create an **SPV** (Special Purpose Vehicle) offshore or a local **Operating Company (OpCo)**
* Asset ownership or revenue rights are transferred to the SPV
* SPV signs legally binding contracts that tie tokens to rights or returns

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### 2. Off-Chain to On-Chain Wrapping

#### 🎯 Legal Wrapping

* Token holders may have:
  * Equity-like rights (via the SPV)
  * Revenue-share agreements
  * Governance access via MONO

#### 📄 Documentation

* Token terms
* Offering memorandum
* Shareholder or revenue-rights agreements
* Regulatory disclosures (KYC/AML compliance)

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### 3. Token Creation

#### 🎨 Token Types

* **PROP-NFTs** — Ownership or investment units (non-fungible, 1 per $100 or $1000 unit)
* **RENT-TKNs** — Yield-bearing fungible tokens linked to cashflow
* **MONO Token** — Protocol utility token used for governance, access, and yield

#### 🛠 Smart Contracts

* Deployed on **Sui**
* Powered by **Supra Oracles**
* Contracts cover:
  * Minting logic
  * Vesting & claim rights
  * Yield payouts
  * KYC enforcement

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### 4. KYC and Whitelisting

#### 🔐 Identity Verification

* Users must complete KYC before receiving any PROP-NFT
* zkLogin available for simplified onboarding
* Non-KYC wallets may hold MONO, but cannot own fractionalized real-world assets

#### 🧾 Whitelisting Logic

* Only verified wallets may mint or trade PROP-NFTs
* Certain secondary markets may be permissioned

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### 5. Distribution & Sale

#### 🏷 Launch Channels

* Direct sale via DeMonopol website
* Web2 Commercial Channel
* OTC access for strategic investors

#### 💳 Payment Options

* USDC (on Sui)
* SUI
* nBTC via Native (BTCFi)
* MONO used for access tiers and potential discounts

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### 6. Yield Distribution & Performance Tracking

#### 💰 Yield Mechanics

* OpCo collects real-world revenue (e.g. rent, vending profits)
* Funds are converted to USDC or stable tokens
* Distributed proportionally to PROP-NFT or RENT-TKN holders

#### 📊 Performance Dashboard

* On-chain analytics
* Real-time APY
* Upcoming payout dates
* Asset-specific voting metrics

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### 7. Secondary Market & Exit

#### 🔁 Liquidity Options

* DEX integration for RENT-TKNs (e.g. Cetus, Turbos)
* Whitelisted NFT marketplaces for PROP-NFTs
* DeMonopol Buyback Treasury (DAO governed)

#### 🧭 Exit Scenarios

* Asset resale by DAO vote
* Redemption at fixed intervals
* Reinvestment into new asset pools

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### 8. Protocol Governance (DAO)

#### 🧠 Powered by MONO

* 1 MONO = Governance unit
* MONO holders:
  * Propose and vote on new assets
  * Allocate treasury funds
  * Decide on token buybacks and incentive programs

#### 📘 Dual-Layer Governance

| Layer            | Function                                                            |
| ---------------- | ------------------------------------------------------------------- |
| **Protocol DAO** | Oversees platform-level decisions, tokenomics, treasury, staking    |
| **Asset DAO**    | Specific to a property or business — votes on operations, yield use |

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### 9. Example Integrations

| Module             | Utility                                                                 |
| ------------------ | ----------------------------------------------------------------------- |
| **Supra Oracles**  | Real-time pricing, off-chain data verification, omnichain compatibility |
| **zkLogin**        | Fast onboarding without crypto wallet barriers                          |
| **Starkey Wallet** | Built-in support for all DeMonopol tokens                               |
| **Native (BTCFi)** | Allows BTC as collateral to buy RWAs                                    |

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### 10. Services Access & Token Utility

#### MONO Token Access Model

| MONO Value Held | Access Rights                                         |
| --------------- | ----------------------------------------------------- |
| $1 in MONO      | Vote on $100 worth of RWA                             |
| $1 in MONO      | List $1000 worth of property on DeMonopol             |
| $100 in MONO    | Join RWA DAO, earn from yield pool, gain early access |