Russian proptech start-up Doma has devised an affordable model for shared home ownership based on a blockchain network of “dwellers”, smart contracts and accumulated equity.
Users – or “dwellers” – pay a monthly fee for equity shares in the network, instead of the physical asset, giving the stability of home ownership and the flexibility to move between different properties.
As the equity increased the fees gradually decline. Doma’s co-founder Maksym Rokmaniko, explains: “We are building a community of people who understand that housing can be both an asset and a service. We want to reverse-engineer the system so that the user pays to live somewhere and generate equity without having to worry about saving up to buy an apartment. The most important factor is to reduce their spending.”
In the absence of banks, conveyancers and mortgage agreements, the system, which is currently still in development, be powered by blockchain, using smart contracts to keep track of each user’s share of equity on the network. The decentralised system would provide every stakeholder with transparency of each transaction.