How to Create a Real Estate Community Token on Solana

The token itself does not confer direct legal title. The standard structure is to have a legal entity (like an LLC) hold the property title. The LLC's ownership is then tied to the token, often through an operating agreement that states membership units are represented by token holdings. Token holders are effectively members of the LLC. Setting up this legal wrapper is a necessary step and requires an attorney.

There are two main methods. First, you can use the Token-2022 transfer fee mechanism. When profits (in SOL or USDC) are sent to the treasury wallet, a 1% fee on all token transfers can be programmed to distribute those profits automatically to every holder. Second, you can manually conduct regular [airdrops](/glossary/airdrop) of the profit token (e.g., USDC) to all holders proportional to their balance, though this is less automated.

Platforms like RealT offer tokenized properties but are centralized marketplaces. Launching your own token gives your community full control over governance, property selection, fee structures, and branding. You're not limited to a platform's curated listings or rules. You also build direct relationships with your members and capture the full value of the community's growth.

On a standard DEX, once launched, tokens are generally permissionless. However, you can implement social or technical gates. For example, you can make the initial distribution private to vetted members. You can also use a tool like Solana's Token-2022 to potentially add transfer hooks that restrict transfers to pre-approved wallets, though this adds complexity and may affect liquidity.

This is a governance risk. Mitigations include: 1) Implementing a time-lock or vesting schedule for founder/team tokens. 2) Structuring governance votes to require more than a simple majority (e.g., 66%) for major decisions like selling a property. 3) Using a multi-sig wallet for the property title itself, requiring several trusted signers for any transaction, regardless of a token vote. Clear governance rules in your community documentation are essential.

On Spawned.com, this is configured automatically at launch. A 0.30% fee is taken on every buy and sell transaction of your token. This fee is not burned or sent to the creator. Instead, it is automatically redistributed proportionally to all existing token holders. This means a holder's balance increases slightly with every trade, rewarding long-term participation in the community.