FeeSimple. An open source real estate management, funding, and investment platform. By John Todero & Timothy Alford. Ver

Transcription

1 FeeSimple An open source real estate management, funding, and investment platform. By John Todero & Timothy Alford Ver

2 Abstract In this paper, we introduce FeeSimple, a modular open source blockchain based platform that facilitates funding, ownership, and management of income-producing real estate. With FeeSimple, real estate owners can improve property management efficiency and achieve increased profits by leveraging the platform s decentralized property management system. For application developers, FeeSimple will provide a decentralized, open source platform with standardized and shared data, which will cultivate industry application innovation. Property developers can fund and digitize real estate assets by issuing and managing their own custom project tokens utilizing the FeeSimple crowdfunding system. In addition, real estate investors can participate in FeeSimple project token generation events, earn rewards by holding project tokens or trade them through an easy-to-use decentralized exchange.

3 Table of Contents 1. Introduction 2. Technology Stack 2.1. Overview 2.2. Services Property Management System Commercial Real Estate Crowdfunding System 3. Economics 3.1. Overview 3.2. Exchange of Value Mechanism 3.3. Sustainability 4. Consensus 5. Roadmap 6. Property Management System 6.1. Overview 6.2. Current Fee Extraction 6.3. A Better System 6.4. The Platform Premise and Purpose Critical Components 6.5. Data Management Event Examples Lease Signed Rent Paid 6.6. Conclusion 7. Commercial Real Estate Crowdfunding System 7.1. Overview (Coming Soon) 8. Distribution 9. The Team 9.1. Core Team 9.2. Advisors 10. Conclusion 11. Glossary

4 1.0 Introduction 1.1 Overview We believe that blockchain is the pathway to future innovation in the commercial real estate industry. From property and asset management, to crowdfunding and investing, every segment of the industry will be affected by this new technology. Therefore, we are introducing FeeSimple, a blockchain based open source property management and crowdfunding platform that can help progressive members of the commercial real estate industry migrate effectively to the approaching web Current Problems FeeSimple s mission is to solve the most important issues that will hamper the commercial real estate industry as it attempts to incorporate nascent blockchain technology and the internet of value (IoV): Existing property management systems overly leverage their power over centralized data creating an environment of high fee extraction and constrained application development. Real estate development requires a large amount of capital, and current financing options are limited to institutional lending, a real estate developer s own network of high net worth accredited investors, or a select number of real estate crowdfunding portals. Current options for owning real estate require a significant investment. Real estate crowdfunding advancements have helped, but investment options via current real estate crowdfunding portals are not liquid enough to be transferred between parties via the internet of value.

5 1.3 Solution To solve these problems, FeeSimple will apply blockchain based technology to maximize efficiencies for real estate developers and property management companies. For application developers, FeeSimple will provide an open sourced platform with standardized data access, and eliminate high fees charged by centralized systems. Additionally, through tokenization of physical assets, FeeSimple will liquify commercial real estate portfolios and open up investing to an expanding world-wide market through the internet of value. To put it simply, FeeSimple will facilitate true innovation across all aspects of commercial real estate ownership.

6 2.0 Technology Stack Overview On a basic level, the FeeSimple technology stack is comprised of a core protocol layer, a modular service layer, and an outer application layer. The protocol layer contains all the core methods and shared resources of the entire FeeSimple platform. The protocol layer can be accessed by all layers above it. The services layer residing above the protocol layer contains modular systems that can be added to extend overall platform functionality. Each system can contain its own set of decentralized databases, smart contracts, sidechains and even sub-sidechains. System interoperability is built into the protocol allowing all systems to communicate with each other. An application layer sits above the services layer allowing applications to interact and access data within the services and protocol layers. Fig The FeeSimple stack is comprised of a core protocol layer, a modular service layer, and an outer application layer.

7 2.2 - Services Focusing on the commercial real estate industry, the first two systems added to the FeeSimple services layer will be the property management and commercial real estate crowdfunding systems. In theory other services could be added in the future Property Management System The FeeSimple Property Management system will help foster much-needed technical advancements in real-estate development and asset-management operations. Leveraging FeeSimple s property management system, real estate owners can improve property management efficiency and achieve increased profits. For application developers, FeeSimple will provide open, permission-based access, as well as standardized data that will allow for technology innovation that is currently not possible with existing closed, and centralized property management systems. Additional details about the FeeSimple Property Management System can be found in section Commercial Real Estate Crowdfunding System FeeSimple will allow for the funding of real estate projects and funds through the tokenization of real estate assets. In addition, the FeeSimple Developer Portal will also allow for developers to manage their investor reporting, tax compliance and dividend disbursements. Individual investors can participate in initial token generation events for real estate projects and funds, as well as purchase tokens for individual real estate projects and funds on the FeeSimple Exchange (REX). Investing in tokenized real estate assets combines the benefits of crowdfunding, private real estate equity investment, and a public REIT while negating any of their disadvantages. Simply put, FeeSimple will allow anyone around the world, including those without access to traditional banking, to participate in any realized profits from title safe real estate.

8 More details about the FeeSimple Crowdfunding System will be included in a future whitepaper.

9 3.0 Economics Overview FeeSimple utilizes a dual token approach to maintain the economics of the platform. The FeeSimple token (FST) is the primary platform ownership token that is used for governance and as a perpetual utility token generator. The secondary token, called RENT, is the utility token of the platform and is automatically generated and continuously distributed to all holders of FST. RENT behaves as a license and is required to access the platform, run smart contracts and store data. Your percentage of RENT compared to others determines your current share of the entire platform s resources. Like FST, RENT can be transferred to a wallet or purchased and sold on various exchanges. RENT is also used to pay delegate block rewards Exchange of Value Like all blockchain based systems, an exchange of value mechanism is required to keep the platform economically self-sustaining. With FeeSimple, there are no transaction fees. Instead, the amount of RENT held determines the percentage of the platform s capacity that someone has access to. This simplifies the required value exchange mechanism and drastically lowers the barrier to entry for dapp developers and users by permitting the potential development of near free services. For dapp developers, ownership of FST is not required, only the amount of RENT needed to match the dapp s resource demands. If a dapp requires more capacity, developers can purchase additional RENT or generate more by buying and holding more FST. On the other hand, if a developer has excess platform resources, RENT can be sold (or even leased out) lowering their resource ownership percentage. This method of tokenizing platform resources offloads server infrastructure investment onto delegates and creates a highly usable and liquid digital asset that anyone can own or sell. There is no hard cap to the amount of RENT generated by the system. This is not entirely inflationary because RENT is continuously distributed to all holders of FST and therefore

10 resource ownership percentages are generally maintained regardless of the number of RENT tokens outstanding. Although, delegates do receive extra RENT for producing blocks. Therefore, delegates receive a higher percentage of RENT, which could, over a long period of time, slowly reduce the non delegate RENT holder s share of the platform s resources. We call this delegated resource slippage. However, block rewards are kept low as FST holders can vote out delegates who misbehave, collect too much idle RENT, or demand unreasonably high rewards. To reduce the total RENT token count and help redistribute RENT more uniformly, system fees (paid in RENT) are required to run various system processes. Examples include initiating a property ICO or adding dapps to the blockchain. System fees are divided up 3 ways: a large percentage is redistributed to all FST holders, a small percentage is sent to a smart contract and allocated to fund future FeeSimple platform development, and the remainder is burnt. System fee amounts can also change via a FST voting process. More details on this and other governance processes including a full system fee rate table will be published at a later time Sustainability Early on, our primary focus will be the development of the FeeSimple ecosystem and standards so that the platform can thrive under community management for years to come. The founders and advisors of FeeSimple will guide the development of the platform for the first two years following the initial coin offering. After, the first two years, a council will form comprised of community members, dapp developers, property owners and industry organizations will be responsible for overseeing the continued growth and adoption of the FeeSimple platform.

11 4.0 Consensus For its consensus algorithm, FeeSimple will use Delegated Proof of Stake (DPoS) to produce blocks. DPoS was selected because it creates blocks efficiently, eliminates miner centralization, utilizes less power, and is already in heavy use. In more detail, DPoS requires that token holders vote for a small number of delegates who, once voted in, are then randomly selected to produce blocks containing transactions. Typically, delegates receive a reward as an incentive to maintain the system in this way. However, because block producers are randomly selected, delegates do not need to compete with each other for rewards like with Proof of Work consensus miners (see Bitcoin). Additionally, because blocks are produced by a relatively small number of delegates, consensus can be reached more efficiently with very short intervals (seconds) between each block. To protect the integrity of the network, FeeSimple token holders can vote out delegates who misbehave or demand unreasonable rewards before each block is produced. For more on Delegated Proof of Stake please see this article on DPoS written by the founder of DPoS Dan Larimer.

12 5.0 Road Map The initial development of the FeeSimple platform is being divided into multiple phases. The first phase will focus on developing the overall FeeSimple protocol, including a testnet and mainnet. Phase two will focus on developing the property management system which includes core functionality needed to operate a commercial real estate business. Phase three will be dedicated to the development of the real estate asset tokenization and crowdfunding system. Q Fee Simple Whitepaper Q Property Management System Whitepaper Q Q Q Q Phase 1 Protocol Infrastructure Commercial Real Estate Crowdfunding System Whitepaper Phase 2 Property Management System Phase 3 Commercial Real Estate Crowdfunding System

13 Fee Simple Property Management System Overview Today s property management systems create an inefficient and expensive problem for the industry, which is ripe for disruption. Because all industry data is centralized and controlled by these systems, it creates an environment of restricted software development and high fee extraction. Even worse, access to data input by property managers themselves is oftentimes directly and/or indirectly sold back to them or their partner vendors by the owners of the centralized property management systems. Currently, the industry is not leveraging data standardization or the latest advancements in distributed-database technology and smart contract automation. In short, technological advancement in the property management industry is inhibited because data is centralized Current Fee Extraction From a property management perspective, the economics of existing centralized property management systems (CPMS) is unbalanced. This is due to the high cost of CPMS deployment and maintenance with multiple competing systems having to reinvent the wheel. Here is how property management software and data fees add up: CPMS owners charge fees to property managers for access to a limited selection of software and services that can manage and store data. CPMS owners can charge fees to third-party vendors such as application developers to access and/or manage the same data. The third-party vendors, in turn, charge property managers fees to cover what the CPMS owner charges them to help pay for access to (what should be) the property manager s data.

14 All of this is tolerated, simply because access to the industry's data has always been centralized and controlled. The following diagram (Fig. 6.2) illustrates how property management system fees are typically extracted: Fig CPMS owners charge fees to property managers for limited management and data-storage software and services. Plus, they can charge fees to third-party vendors to access and manage the same data. In turn, the third-party vendors charge property managers fees to cover what the CPMS owner charges them A Better System Our solution to reallocate and reduce fees is the FeeSimple Property Management System and it is founded on three principles: 1. Decentralize data, giving only property managers and owners full control and ownership of their data. 2. Allow applications to manage and share the same data privately and securely. 3. Drastically reduce resources by utilizing smart contracts that automate data setup, access and management. 4. Incorporate a consensus method that eliminates transaction fees. By creating a decentralized shared data system that does not rely on a third party to manage data, FeeSimple can reduce data management costs and direct more resources toward software innovation.

15 With FeeSimple s decentralized structure, a user or property manager is only required to pay the distributed application (dapp) developer for tools to view and manage their own data The System Premise and Purpose The FeeSimple solution to decentralize data, lower data infrastructure costs and facilitate software innovation is to build a decentralized open source computing platform. Specifically, a platform comprised of secure decentralized databases and distributed cloud storage that is autonomously managed by a core smart contract executed by a multi-node virtual machine. With this system in place, we can: Decentralize and standardize all data for the industry. Structure the exchange of value mechanism in a way that is more beneficial to owners (and property managers). More effectively allocate resources to application development. Open source and private dapps can be built on top of the platform and, with permission, can access and manage data by invoking the core smart contract. Because all dapps can share the same data, and development is open and competitive, this solution provides the potential to create a better library of property management software. Owners and property managers can mix and match which dapps they wish to use and pay only for services needed. Since data is decentralized and shared, users can switch easily to a competing dapp or create their own without losing any data. The FeeSimple Core Smart Contract (FCSC) contains the methods needed to manage all core data. The FeeSimple virtual machine then executes the smart contract which can store data in its decentralized cloud storage system, update inventory, guest and event database records and/or add transactions to the accounting ledger. The following diagram (Fig ) provides a broad visual representation of the FeeSimple Property Management System:

16 Fig The decentralized FeeSimple Property Management System includes an accounting ledger, inventory database, guest database, event ledger, file storage, and a core smart contract that is executed by the FeeSImple multi-node virtual machine Critical Components To accommodate multifamily s modest data needs, the FeeSimple Property Management System is comprised of decentralized accounting and event ledgers, decentralized inventory and guest databases, decentralized file storage and the FeeSimple Core Smart Contract: FeeSimple Core Smart Contract (FCSC) This is a set of smart contracts that autonomously manages all data based on established conditionals and input from dapps built on top of the platform. Oracles can also be added to the system that pull information from outside of FeeSimple for use in formulas and conditionals.

17 Decentralized Accounting Ledger This is an immutable ledger of all property transactions. Authenticated dapps that are given permission to access the data can read and add transactions to the ledger by invoking the FCSC. Decentralized Inventory Database This database holds all property, floor plan and unit data. This includes unit availability, property descriptions, pricing and other relevant information. Authenticated dapps can manage inventory data using FCSC CRUD operations (create, read, update and delete). Decentralized Guest Database This database stores profiles that contain industry standard guest card data such as contact fields, lease information, originating source, etc. Guest profiles can also store references to rent payment records on the accounting ledger which can be combined with other data to calculate guest reputation scores. Authenticated dapps can also manage guest data using FCSC CRUD operations. Decentralized Event Ledger This ledger records actions such as lease signed, phone call, tour, walk-in and other guest-related events. These actions can contain references to related data and documents in the decentralized inventory database and decentralized cloud storage areas. Authenticated dapps can add events to the event ledger by invoking the FCSC. Decentralized File Storage The platform s decentralized file storage can house inventory- and guest-database related images, documents and other files in a secure, private and distributed manner. Stored files could include floor plan images, property photos and lease other documents.

18 6.5 - Data Management Event Examples The following examples illustrate how data can be managed when a guest event is passed to the core smart contract Lease Signed Invoking the lease-signed smart contract will append a lease-signed event to the event ledger. The related unit is automatically updated in the inventory database, availability is adjusted and references are attached to the guest and lease data. Also, the guest database is updated, associating the guest profile with the event, unit and lease. The following diagram (Fig ) demonstrates the process for a lease-signed smart contract: Fig Invoking the lease-signed smart contract using a dapp triggers multiple events that automatically update and manage data in the event ledger as well as the inventory and guest databases Rent Paid Calling the rent-paid smart contract will append a transaction to the accounting ledger and add a rent-paid event to the guest-event database. If a tenant pays late or misses a payment, the guest-event database can also be updated to reflect this information. The following diagram (Fig ) demonstrates the process for a rent-paid event:

19 Fig Invoking the rent-paid smart contract via a dapp automatically updates and manages data on both the accounting and event ledgers Conclusion The FeeSimple Property Management System will create a more open ecosystem for Web 3.0 software applications, which will help foster much-needed technical advancements in real-estate development and asset-management operations. By decentralizing data and structuring fees that direct more resources toward application development, we propose that, utilizing FeeSimple, the open-source community, private companies and current industry players will create the next generation of real estate management software. The following diagram (Fig. 6.6) provides a visual representation of the potential capabilities of the FeeSimple Property Management system:

20 Fig The FeeSimple Property Management system will create a more open ecosystem for Web 3.0 software applications in support of real-estate development and asset-management operations. Building on extensive industry-specific software development experience, the founders of FeeSimple are committed to making FeeSimple the foundation of future commercial real estate management software. FeeSimple is the first property management system of its kind and we believe that, once adopted, this approach will facilitate large-scale innovation across all aspects of the industry.

21 Fee Simple Commercial Real Estate Crowdfunding System 7.1 Overview FeeSimple will allow for the funding of real estate projects and funds through the tokenization of real estate assets, and then creating a crowdfunding token generation campaign on the FeeSimple platform. In addition, the FeeSimple Developer Portal will allow for developers to manage their investor reporting, tax compliance and dividend disbursements. Individual investors can participate in initial token generation events for real estate projects and funds, as well as purchase tokens for individual real estate projects and funds on the FeeSimple Exchange (REX). Investing in tokenized real estate assets combines the benefits of crowdfunding, private real estate equity investment, and a public REIT while negating any of their disadvantages. Simply put, FeeSimple will allow anyone around the world, including those without access to traditional banking, to participate in any realized profits from title safe real estate. 7.2 Funding and Investment System Components Token Generation Events - The FeeSimple platform will offer a Developer Portal allowing real estate developers to tokenize their real estate projects or funds and manage financing through token distribution. Developers will be able to facilitate and market coin sales to their investor networks and the FeeSimple Exchange (REX) through the Developer Portal Investor Management - The Developer Portal will provide investor management functionality to provide asset reporting, tax compliance and manage monthly dividend calculations and disbursements.

22 FeeSimple Exchange (REX) - FeeSimple will offer a public marketplace to exchange real estate asset tokens that will list the investment details and financials of each project or fund. The FeeSimple Exchange provides the liquidity benefits of a publicly traded Real Estate Investment Trust (REIT) with the additional benefits of a private real estate deal.

23 8.0 Distribution By utilizing a token generation crowdfunding approach to raise funds, FeeSimple will be able to fund seed development of the core platform. Below is a breakdown of the coin sale and where we plan to allocate the funds raised FeeSimple Token Supply Total Supply 100,000,000 FST Circulating Supply 51,000,000 FST initial token sale 20,000,000 FST for founders and advisors Token Sale Period The token sale period is currently scheduled to begin on November 18th, 2018 at 3:00 PM EST with a minimum total contribution target of $5M and a target of $20,000,000 raised. FeeSimple will release 51,000,000 tokens for sale. The token sale period will run for a period of 14 days, or in the event the soft cap of $20M is reached, until 48 hours after the soft cap has been reached Projected Uses of Contributions If contributions meet or minimally exceed our minimum funding targets, we anticipate the vast majority of contributions being deployed to fund the platform and complete proper regulation and legal requirements. In addition to platform development, FeeSimple will also reserve budgets for sustainable operations, marketing and legal expenses required to help build and operate FeeSimple.

24 Development Expenses - FeeSimple will maintain a team of product developers that will be responsible for building the core FeeSimple functionality to facilitate platform adoption and community support. Operational Expenses - FeeSimple will have operational team members to assist in the long term success and profitability of FeeSimple. Marketing Expenses - Contributions allocated for marketing expenses will cover any costs associated with the promotion of FeeSimple. Partner Development Expenses - FeeSimple will invest in getting real estate developers, property management companies, and dapp developers to adopt the the FeeSimple platform and help build the FeeSimple ecosystem. Legal Expenses - Contributions allocated for legal expenses will cover any legal costs associated with the establishment and operation of the FeeSimple entity, the establishment and operation of entities selected as service providers by FeeSimple and any unforeseen legal costs necessary to resolve matters that could pose a threat to the continued efforts of FeeSimple.

25 9.0 The Team The co-founders of FeeSimple have a high level of expertise and proven track record of success in developing real estate and blockchain technology. The experience and expertise of the founders and advisors will help in marketing and operating FeeSimple Core Team John Todero Co-founder - Strategy and Operations Developed first company Dyverse into leading real estate technology company with no outside funding. John will be leading the business and product development strategy of FeeSimple. Tim Alford Co-founder - Lead Developer Cryptocurrency expert and software engineer. Bringing all the ideas to reality and managing the development of the FeeSimple design and development team. Nathan Hallford Lead Developer Blockchain development expert helping to build the FeeSimple system on the blockchain, and revolutionizing property management leasing technology Advisors Shane Gillman Bernstein Management Corporation - Senior Director of Marketing Joseph Westlake SightPlan - President

26 10.0 Conclusion FeeSimple creates a solution to allow anyone access to quality real estate software and real estate asset token projects. Participate in our token generation event to help support this revolutionary project and be apart of its development from the beginning.

27 11.0 Glossary Fee Simple - In English law, a fee simple or fee simple absolute is an estate in land, a form of freehold ownership. It is a way that real estate may be owned in common law countries, and is the highest possible ownership interest that can be held in real property. Source: Distributed Database - A distributed database is a database in which storage devices are not all attached to a common processor. It may be stored in multiple computers, located in the same physical location; or may be dispersed over a network of interconnected computers. Unlike parallel systems, in which the processors are tightly coupled and constitute a single database system, a distributed database system consists of loosely coupled sites that share no physical components. System administrators can distribute collections of data (e.g. in a database) across multiple physical locations. A distributed database can reside on organized network servers or decentralized independent computers on the Internet, on corporate intranets or extranets, or on other organization networks. Because Distributed databases store data across multiple computers, distributed databases may improve performance at end-user worksites by allowing transactions to be processed on many machines, instead of being limited to one. Source: Blockchain (this is a kind of distributed database also called a distributed ledger ) - A blockchain, originally block chain,is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. The Harvard Business Review describes it as "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way." For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block

28 cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain. This makes blockchains potentially suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting provenance, food traceability or voting. Source: Smart Contract - A smart contract is a computer protocol intended to facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow you to perform credible transactions without third parties. These transactions are trackable and irreversible. Smart contracts were first proposed by Nick Szabo in Proponents of smart contracts claim that many kinds of contractual clauses may be made partially or fully self-executing, self-enforcing, or both. The aim with smart contracts is to provide security that is superior to traditional contract law and to reduce other transaction costs associated with contracting. Source: Decentralized Application (dapp) - For an application to be considered a Dapp (pronounced Dee-app, similar to ) it must meet the following criteria: 1. The application must be completely open-source, it must operate autonomously, and with no entity controlling the majority of its tokens. The application may adapt its protocol in response to proposed improvements and market feedback but all changes must be decided by consensus of its users. 2. The application's data and records of operation must be cryptographically stored in a public, decentralized blockchain in order to avoid any central points of failure. 3. The application must use a cryptographic token (bitcoin or a token native to its system) which is necessary for access to the application and any contribution of value from (miners / farmers) should be rewarded in the application s tokens.

29 4. The application must generate tokens according to a standard crytptographic algorithm acting as a proof of the value nodes are contributing to the application (Bitcoin uses the Proof of Work Algorithm). Source: Consensus - When several nodes (usually most nodes on the network) all have the same blocks in their locally-validated best blockchain. Source: Consensus Node - A computer that connects to the Bitcoin (or other crytocurrency) network. Source: Proof of Work - A proof-of-work (POW) system (or protocol, or function) is an economic measure to deter denial of service attacks and other service abuses such as spam on a network by requiring some work from the service requester, usually meaning processing time by a computer. A key feature of these schemes is their asymmetry: the work must be moderately hard (but feasible) on the requester side but easy to check for the service provider. This idea is also known as a CPU cost function, client puzzle, computational puzzle or CPU pricing function. It is distinct from a CAPTCHA, which is intended for a human to solve quickly, rather than a computer. Source: Proof of Stake - Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e. the stake). In contrast, the algorithm of proof-of-work (PoW) based cryptocurrencies (such as bitcoin) use complicated cryptographic puzzles in order to validate transactions and create new blocks (i.e. mining). Source:

30 Delegated Proof of Stake (DPoS) - Invented by Daniel Larimer, Delegated Proof-of-Stake (DPoS) is a consensus mechanism that requires coin holders to vote for delegates, who are then responsible for validating transactions and maintaining the blockchain. DPoS is an alternative to the more commonly known, Proof-of-Stake (PoS) model which requires miners to put up a stake in a cryptocurrency in-order for them to be able to validate transactions. Source:

31 Disclaimer This white paper ( White Paper ) is meant to describe the currently anticipated plans of FeeSimple Inc. ( FeeSimple ) for developing a new modular open source blockchain protocol that uses a cryptocurrency mechanism ( FeeSimple Token ) to facilitate the development of real estate software. Nothing in this document should be treated or read as a guarantee or promise of how the FeeSimple Token will develop or of the utility or value of the FeeSimple Token. This White Paper outlines FeeSimple s current plans, which could change at its discretion, and the success of which will depend on many factors outside FeeSimple s control, including market-based factors and factors within the data and cryptocurrency industries, among others. Any statements about future events are based solely on FeeSimple s analysis of the issues described in this document. That analysis may prove to be incorrect. This document does not constitute an offer or sale of the FeeSimple Tokens or any other mechanism for purchasing the FeeSimple Tokens (such as, without limitation, a Simple Agreement for Future Tokens related to the FeeSimple Tokens). Any offer or sale of the FeeSimple Tokens or any related instrument will occur only based on definitive offering documents for the FeeSimple Tokens or the applicable instrument.