How does HOM DAO determine the amount of real estate loans and real estate assets in the treasury?
The target amount of real estate assets for the HOM DAO treasury is based on the number of tokens in circulation, the price for those tokens, the amount of tokens needed to provide liquidity for staking activities, and the amount of liquidity provided to the protocol by selling NFTs to NFT Liquidity Providers (NLPs). If the HOM Protocol becomes very popular, the only limitation in the amount of properties that can be bonded on the platform will be dependent on the amount of liquidity available for bonding activities.
There are three ways that the HOM DAO can add real estate to the protool. The first is to sell loans to NFT LIquidity Providers in a secondary market. The second is to open up a bonding “discount window” which creates an incentive for people to bond USDC and other crypto for HOM tokens, and then use that liquidity to issue more loans (or buy properties) that are owned by the DAO. The third is to open up a bonding discount window to create incentives for people to bond their property HOM-NFTs to the treasury in exchange for HOM tokens.
As the HOM-NFT platform matures, the goal is that property owners will see the upside potential in using the HOM protocol to make an HOM-NFT of their property and then get a loan by bonding the HOM-NFT to the treasury for a specific term. The theoretical amount of property that the treasury can bond is the entire planet, but practically it is a matter of protocol liquidity available to the Protocol by selling off bonded NFTs in exchange for new liquidity. If a robust after-market matures for HOM loans, the HOM Protocol and NFT Minting app can manage an infinite number of transactions.
Given that the term for property staking is significantly longer than traditional crypto staking (years versus hours), and properties themselves tend to grow in value over time, the reserves in the HOM treasury should be more stable than protocols that are purely based on short-term bonding contracts and crypto.