🏛️ Token Holder Governance Guide

🧩 Your Ownership Rights

When you purchase property tokens, you become a fractional owner of real estate.
With that ownership, you gain governance rights on decisions affecting your investment.

All governance activity is executed on-chain, giving you transparent, immutable voting records.

📘 Overview

Through the PropertyGovernance smart contract, you can:

• 🛠️ Vote on property expenses — approve or reject maintenance or repair costs

• 🏷️ Control buyout policies — determine if buyouts are allowed and what premium applies

• 📄 Review contractor quotes — inspect supporting documentation before voting

All governance actions are permanently recorded on the blockchain.

🗳️ Types of Proposals

🔧 Expense Proposals

When the property manager needs to spend funds beyond routine operations, a proposal may be created.

Category Amount Range Voting Period Min. Participation 🚨 Emergency Under $5,000 3 days 5% of tokens 🧹 Maintenance $5,000–$9,999 7 days 10% of tokens 🏗️ Major Change $10,000+ 14 days 25% of tokens

Note: Routine expenses below the property’s voting threshold are handled directly by the manager.

🏷️ Buyout Proposals

These proposals determine how institutional investors may acquire the entire property.

Proposal Type Description Voting Period Min. Participation ✔️ Enable Buyouts Allow buyout offers 7 days 20% ❌ Disable Buyouts Prevent buyout offers 7 days 20% 🪙 Change Premium Adjust 5%–50% premium 7 days 20%

🏗️ How Proposals Are Created

🔧 Expense Requisitions

1. 🧭 Manager identifies need (e.g., roof repair, HVAC replacement)

2. 📑 Quotes collected — minimum of 2 contractor quotes

3. 📝 Requisition submitted — description, cost, documents

4. ⚙️ System checks threshold — auto-creates proposal if required

5. 🔔 Token holders notified — voting starts immediately

🏷️ Buyout Proposals Can Be Created By:

• 🛠️ Platform administrator

• 🧑‍💼 Token holders owning at least 1% of tokens

🗳️ Voting Requirements

✔️ Who Can Vote

You must:

• Hold at least 1 token in the property

• Be KYC-verified with a whitelisted wallet

✔️ Your Vote

• 1 vote per proposal

• YES or NO

• Vote is final once submitted

• 1 person = 1 vote (not weighted by token count)

📊 Minimum Participation

Proposal Type Required Participation 🚨 Emergency 5% of total token supply 🧹 Maintenance 10% 🏗️ Major Change 25% 🏷️ Buyouts 20%

If participation is not met, the proposal fails automatically.

🧮 How Approval Works

A proposal passes only if:

1. Minimum participation reached, and

2. More than 50% of votes are YES

Example

1,000 token holders — maintenance proposal requires 10% participation.

Votes Cast YES NO Result 80 (8%) 70 10 ❌ Fails — insufficient participation 120 (12%) 50 70 ❌ Fails — majority NO 120 (12%) 65 55 ✅ Passes — quorum + majority YES

🚀 What Happens After Voting

If Proposal Passes

• Status → Executed

• 💸 Funds released from reserves

• 🛠️ Work authorized

• 🧾 Blockchain record created

If Proposal Fails

• Status → Failed

• No funds released

• Manager may revise and resubmit

• All documents remain on record

🔄 The Requisition Process (Visual Flow)

Property Manager           Governance System                   Token Holders
      |                           |                                   |
      | 1. Submit requisition     |                                   |
      | (description + quotes)    |                                   |
      |-------------------------->|                                   |
      |                           |                                   |
      |                 2. Check voting threshold                     |
      |                           |                                   |
      |                 [If voting required]                          |
      |                           |                                   |
      |                 3. Create proposal                            |
      |                           |------------------------------->    |
      |                           |                                    |
      |                           |          4. Review & vote          |
      |                           |<---------------------------------- |
      |                           |                                    |
      |                 5. Tally votes                                 |
      |                           |                                    |
      |                 [If approved]                                  |
      |                           |                                    |
      | 6. Funds released         |                                    |
      |<--------------------------|                                    |

🧾 What You Can Review Before Voting

You’ll see:

• 📘 Description of the work

• 💵 Amount (in USDC)

• 🔗 Quote URLs (e.g., Dropbox links)

• 🧑‍💼 Property manager info

• 🏷️ Proposal type

🏦 Reserve Funds

Each property maintains reserve accounts funded from the initial token sale:

Reserve Type Purpose Replenishment 🛠️ Initial Maintenance Routine upkeep From rent 🏘️ Vacancy Reserve Cover vacancy shortfalls When rent resumes 🧱 Deferred Maintenance Known issues at launch Not replenished

Approvals do NOT require additional contributions from you.
Funds always come from reserves.

🏷️ Buyout Governance

🤝 What Is a Buyout?

An institutional buyer attempts to purchase all tokens of a property.

💰 The Buyout Premium

Token holders can set a premium (5%–50%) buyers must pay above market value.

Example

If token value = $100
Premium = 20%
Buyer must pay $120 per token.

⚙️ Enable or Disable Buyouts

Token holders can collectively choose to:

• ✔️ Enable buyouts (allow offers)

• ❌ Disable buyouts (block all offers)

⏱️ Timeline Reference

Stage Duration Proposal creation Immediate Emergency voting 3 days Standard voting 7 days Major change voting 14 days Buyout voting 7 days Execution Automatic

❓ Frequently Asked Questions

🗳️ Voting

What if I miss a vote?
Proposals proceed with votes cast. If participation is too low, it fails.

Can I change my vote?
No — votes are immutable once submitted.

How will I be notified?
You’ll receive platform notifications.

What if I buy tokens after voting starts?
You may vote if you hold tokens at the time you vote.

👥 Participation

Do I have to vote on everything?
No — but participation ensures better governance.

Do more tokens = more votes?
No — one verified holder = one vote.

What if I own tokens in multiple properties?
You can vote in each corresponding property.

📄 Proposals

Can I create a proposal?

• Buyout proposals: need 1% ownership

• Expense proposals: created by managers only

What happens if a proposal fails?
No funds released; manager may revise.

Are votes public?
Yes — all votes are on-chain.

🔐 Security & Transparency

• 🔗 Blockchain-recorded actions

• 🧑‍💼 KYC-verified voters only

• 📑 Multiple quote requirement

• ⏳ Time-locked voting periods

• ⚙️ Automated execution of approved proposals

🆘 Getting Help

If you have questions:

• About a proposal → Review details & documents

• About voting → Contact support

• Technical issues → Check wallet + KYC status

This guide outlines the PropertyGovernance smart contract system. All actions are permanently recorded on Ethereum for transparency and auditability.

Last updated: December 1, 2025

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