Real Estate DAO Launch Tutorial: Tokenize Property on Solana

Rental income collected by the property-holding LLC can be distributed in several ways. The most common method is for the DAO to vote to use treasury funds to buy back and burn tokens from the market, increasing the value of remaining tokens. Alternatively, the DAO can vote to distribute stablecoins (like USDC) directly to token holders' wallets on a pro-rata basis. The specific mechanism should be clearly outlined in the DAO's initial legal and governance documents.

Solana offers significantly lower transaction fees and faster speeds, which is critical for a real estate DAO. Distributing small dividend payments to hundreds of holders would be prohibitively expensive on Ethereum during high congestion. Solana's sub-$0.01 transactions make micro-distributions feasible. Furthermore, Solana's Token-2022 program, which Spawned uses post-graduation, allows for the configurable 1% transfer fee that can automatically fund the DAO treasury.

This is a key reason for the legal wrapper (like an LLC). If structured correctly, the LLC holds the property and any liability. The DAO members (token holders) are owners of the LLC, which generally provides limited liability protection. This means their personal assets are shielded from lawsuits related to the property. The specific level of protection depends entirely on proper legal formation and adherence to corporate formalities, making legal counsel essential.

On every token trade (buy or sell) on Spawned, a 0.30% fee is taken. This entire fee is automatically distributed proportionally to all current token holders. If you hold 1% of the total token supply, you receive 1% of this 0.30% fee pool from every trade. This creates a direct, passive income stream for holders, incentivizing them to retain their tokens and participate in the DAO long-term, rather than trading speculatively.

Graduation occurs when your token reaches specific liquidity and market cap milestones. Post-graduation, your token transitions to using Solana's Token-2022 standard. At this point, the 1% perpetual transfer fee is activated. This 1% fee is charged on any transfer of the token (not just trades) and is sent directly to a designated DAO treasury wallet. This provides a continuous, automated funding mechanism for property expenses, managed through DAO governance votes.

The operating agreement is critical. It must define: the purpose of the DAO/LLC; the rights and responsibilities of token holders (members); procedures for admitting new members; governance processes for voting on property decisions; profit/loss distribution mechanics; procedures for selling the property; and dissolution terms. It must also explicitly state that token ownership constitutes membership in the LLC. This document should be drafted by an attorney specializing in blockchain and real estate law.