Home General Help 🏠 Initial Public Sale (IPS) – Investor Guide

🏠 Initial Public Sale (IPS) – Investor Guide

Last updated on Dec 08, 2025

🏠 Initial Public Sale (IPS) – Investor Guide

Last updated on Oct 22, 2025

SecondaryDAO Investor Guide
Complete Guide to Buying & Managing Property Tokens

Table of Contents

  • What Are Property Tokens

  • The Two Phases Explained

  • How to Buy Tokens

  • What Happens After You Buy

  • Understanding Property Information

  • Seller Equity Disclosure

  • Your Rights & Protections

  • When You Can Sell

  • Earning Rental Income

  • Fees & Costs

  • Common Questions

  • Getting Help

  • Quick Reference Card

  • Glossary

What Are Property Tokens

Buying property tokens on SecondaryDAO gives you fractional ownership in real estate — similar to owning stock in a company.

Example:

  • Property Value: $500,000

  • Total Tokens: 10,000

  • Token Price: $50

  • Buying 100 tokens ($5,000) = 1% ownership

What You Get

  • Ownership proportional to tokens held

  • Monthly rental income

  • Appreciation if property value increases

  • Trading rights after IPS

The Two Phases Explained

Phase 1: Initial Property Sale (IPS)

The property is listed for its first offering at a fixed price for a limited period until funding completes.

Key Features

  • Fixed token price (e.g., $50)

  • Lower fee (example: 2.5%, sometimes 0%!)

  • No price fluctuation

  • No secondary trading

  • Seller tokens locked

When you see the green IPS badge, tokens are available at a fixed introductory price.

Phase 2: Secondary Market

Once the funding goal is reached, trading begins freely on the open market.

Key Features

  • Variable token prices

  • Standard 5% fee

  • Market-driven price changes

  • Trading allowed

  • Seller tokens unlocked

When you see the blue Secondary Market badge, tokens are tradable and rent distributions start.

How to Buy Tokens

Step 1: Browse Properties

Look at:

  • Location

  • Token price

  • ROI

  • Phase badge

  • Funding progress

Example
Sunset Villa — Miami, Florida
IPS Phase — $50.00 fixed
Funding: 25%
Expected ROI: 8.5% annually

Step 2: Review Property Details

Check:

  • Property overview

  • Tokenomics

  • Seller equity

  • Fees and documents

Step 3: Connect Wallet

Use MetaMask or Coinbase Wallet funded with:

  • USDC for purchases

  • Small amount of ETH for gas

Step 4: Enter Purchase Amount

You’ll see:

  • Total cost including fees

  • Ownership percentage

  • Estimated monthly rent

Step 5: Approve USDC

Your wallet asks you to authorize USDC spending (one-time per property).

Step 6: Confirm Purchase

Confirm the transaction.
Funds move into smart contract escrow.

What Happens After You Buy

Immediately

You’ll see an on-screen confirmation and transaction hash.

During IPS

Tokens are automatically issued when you purchase.

After Phase 2 Begins

You can trade, earn rent, and view your holdings.

Understanding Property Information

Property pages include:

  • Quick stats (price, ROI, tokens sold)

  • Full tokenomics

  • Seller equity disclosure

  • Fees, rent schedules

  • Property documents and images

Tap or hover the ℹ️ icons to learn more.

Seller Equity Disclosure

Why It Matters

  • Shows seller ownership

  • Indicates locked/unlocked status

  • Enhances transparency

Example

  • Seller Wallet: 0x1234…7890

  • Allocation: 25% (2,500 tokens)

  • Status: Locked during IPS

Sellers receive tokens at $0 cost but cannot sell until Phase 2.

Your Rights & Protections

You Own

  • Legal fractional ownership

  • Monthly rent rights

  • Voting and exit rights (if applicable)

  • Exposure to property appreciation

During IPS

  • Funds held in smart contract escrow

  • Immutable release conditions

  • Admins cannot access your funds manually

Escrow Protections

  • Blockchain-based safeguards

  • Transparent and auditable movements

When You Can Sell

Phase 1 (IPS)

Selling is not available.

Phase 2 (Secondary Market)

You may sell to other investors using:

  • Market orders

  • Limit orders

A 5% trading fee applies.

Earning Rental Income

How It Works

Tenant → Property Manager → Token Holders

Example:

  • Monthly Rent: $3,500

  • Your Ownership: 1%

  • Your Income: $35/month

Fees & Costs examples

Phase 1 (IPS)

  • Fee: 2.5%

  • Example: $5,000 × 2.5% = $125 fee

Phase 2

  • Fee: 5%

  • Example: $5,200 × 5% = $260 fee

Exit Fee

  • 5% applied when the underlying property is eventually sold

Gas Fees

  • Ethereum network fees (typically $8–$20 total)

Common Questions

Minimum Investment?
Usually 1 token ($50).

What Wallets Are Supported?
MetaMask and Coinbase Wallet and pretty much whatever you have. If you are using one we don't have, let us know @ [email protected]

When Are Tokens Issued?
IPS: Immediately at purchase.
Secondary: Instantly at purchase.

Is There a Lock-Up?
Investors: No.
Sellers: Locked during IPS only.

When Do I Start Earning Rent?
After tokens are issued.

What If Property Is Vacant?
No rent is distributed for that month. Reserves may apply.

How Safe Is My Investment? (We take this seriously)

  • Smart contract escrow

  • Blockchain transparency

  • Real property backing - You're not buying debt. You're buying a property.

  • Ownership held in a separate legal entity

Can I Track Seller Wallets?
Yes — all wallet addresses are visible on-chain.

Taxes

  • Rent = taxable income

  • Token sales = capital gains
    Annual summaries are provided for reporting.

Getting Help

Support Options

Response Times

  • Email: 24–48 hours

  • Chat: Usually within 1 hour (business hours)

  • Urgent: Add “Urgent” in subject line

Quick Reference Card

Phase 1 (IPS)

  • Fixed-price tokens

  • Lower fees (2.5%) Sometimes 0%!

  • Tokens issued when funding completes

  • No secondary trading

  • Seller tokens locked

Phase 2 (Secondary Market)

  • Free trading

  • Market prices fluctuate

  • Monthly rent begins

  • Standard 5% fees

  • Seller tokens unlocked

Glossary

IPS: Initial Property Sale (first offering)
Secondary Market: Open trading after IPS
Escrow: Smart contract holding funds
Gas Fee: Ethereum network cost
USDC: USD-pegged stablecoin
Web3 Wallet: Crypto wallet like MetaMask

Last Updated: October 2025
Version: 1.0
Contact: [email protected]

Policies and procedures are updated frequently. Please check back for the latest information.