System for managing and trading digital asset tokens

System for managing and trading digital asset tokens

Background on digital asset tokens:

Digital asset tokens: Digital tokens created, issued and exchanged through blockchain technology, whose value is linked to a value bank.

Value bank: It consists of the residual value of a series of ground leases (GLs) and supports the value growth of digital asset tokens.

Issuance and management: The issuance and management of tokens are controlled by a central authority, and each token is represented by a smart contract on the blockchain.

Advantages of ground leases (GLs):

Long-term lease structure: GLs usually have long lease terms (up to 99 years) and provide a stable stream of rental income.

Rent escalation clauses: Rents usually contain escalation clauses, which increase rental income over time.

Tax efficiency: GLs have tax efficiency advantages and usually allow for the deferral of capital gains taxes.

Value bank and value growth:

Residual value: The residual value of GLs refers to the reversionary value of the land and buildings (and any improvements) on the ground when the lease expires.

Quantum generator model: This model drives the natural growth of the value bank by continuously adding new GLs to the value bank without additional capital investment.

Example of value growth: Assuming a 2% inflation rate and a 1-2% real return rate, the value of the value bank can grow significantly by the 99th year (as shown in Figure 9).

Trading and transparency:

Trading network: Token transactions are conducted through a settlement network, which records and stores transactions in a distributed ledger to ensure transparency.

Trading currency: Tokens can be purchased through digital exchanges using legal tender or electronic currency (such as cryptocurrency).

Smart contracts and blockchain technology:

Smart contracts: used to encode and execute contract terms related to tokens, automatically executing predetermined conditions.

Blockchain technology: provides decentralized, peer-to-peer transaction verification and recording to ensure the security and immutability of transactions.

System architecture and operation:

System architecture: includes components such as servers, distributed ledgers, pricing servers, account servers, and wallets.

Operational process: From the acquisition and classification of GLs to the establishment and value growth of the value bank, the entire process is controlled by the operator (as shown in Figure 9).

Market application and potential:

Portfolio diversification: The rental income stream provided by GLs has a low correlation with other asset classes, which helps to reduce portfolio risk.

Capital efficiency: The GLs structure reduces the overall cost of capital, allowing investors to obtain higher returns with less equity investment.

Market potential: With the increase in market penetration of GLs, the value of value banks and tokens is expected to grow significantly (as shown in Figure 12).

Compliance and regulation:

Compliance conditions: Collect real-time data through Oracle to evaluate whether transactions comply with relevant legal and tax requirements.

Regulatory support: System design and operation must comply with securities and tax regulations to ensure compliance.

Summary of short answer questions:

What are Digital Asset Tokens and the value support behind them?

Digital asset tokens are digital tokens created, issued and exchanged through blockchain technology, and their value is supported by a value bank. The value bank consists of the residual value of a series of ground leases (GLs).

What is the important role of ground leases (GLs) in the digital asset token system?

GLs provide a long-term lease structure that usually contains a rent escalation clause, providing a stable rental income stream and potential residual value growth for the value bank. In addition, GLs have tax efficiency advantages.

How does the Quantum Generator Model drive the growth of the Value Bank?

The Quantum Generator Model drives the natural growth of the Value Bank by continuously adding new GLs to it, without the need for additional investment by existing token holders.

How are transactions of digital asset tokens carried out and how is their transparency guaranteed?

Token transactions are carried out through a settlement network that uses blockchain technology to ensure the security and immutability of transactions. All transactions are recorded in a distributed ledger to ensure transparency.

What role do smart contracts play in the digital asset token system?

Smart contracts are used to encode and execute contract terms related to tokens, which can automatically execute predetermined conditions and reduce human intervention and errors.

What are the main components of the system architecture and what are their respective functions?

The system architecture mainly includes components such as servers, distributed ledgers, pricing servers, account servers and wallets. The server is responsible for the issuance and management of tokens, the distributed ledger records transactions, the pricing server calculates the token price, and the account server maintains the wallet, which is used to store and trade tokens.

How does the market view this digital asset token and its potential?

The market believes that this digital asset token provides a new investment channel. With the support of the Value Bank, the token value is expected to grow with the increase of GLs. In addition, the rental income stream provided by GLs helps to reduce portfolio risk and improve capital efficiency.

How is compliance and supervision guaranteed in the digital asset token system?

The system collects real-time data through Oracle to evaluate whether the transaction complies with relevant legal and tax requirements. In addition, the system design and operation must comply with securities and tax regulations to ensure compliance.