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All profits remaining after costs are deposited directly to NFT holders at the beginning of each month. Funds are distributed to owners at a specified time and day of each month. This alleviates accounting burdens for partial month payments. Our payday is always the same day.

The responsibility of management falls on the managing member of the DAO. It is highly advised that a managing member uses a professional management service, like Revolve, to oversee the operations of the property. It is also highly advised that members do their due diligence before electing a new managing member.

DAO stands for a Decentralized Autonomous Organization. It allows for fractional ownership participation in all primary decisions regarding a property. By giving fractional owners a voice through voting on all the most important decisions regarding the property, we offer hands-on ownership beyond all other fractional models. This is collective ownership by the people for the people, in the true spirit of blockchain.

Member Managed or Managing Member designation exists within the LLC framework. Each LLC is structured with a managing member who is required to uphold fiduciary duties on behalf of the members. This ensures legal compliance and transparency, as each LLC has a responsible representative.

The managing member has fiduciary duties to members of the DAO. Honesty, transparency, and accountability are required in all business dealings. Managing members are financially responsible if something happens to the home (i.e. property is damaged and the MM did not upkeep the insurance policy), if members are not paid out, or if members feel they have been wronged by the managing member.

When a manager is voted out, a predetermined incumbent takes their place, by majority vote. A transfer of authority occurs and the keys are, literally and figuratively, handed off to the newly elected MM. Recording of new leadership is filed with the secretary of state.

Each property has legal ownership by a standalone member managed LLC. For example, 123 Main St. LLC holds title for 123 Main St. The property title is the sole asset of the LLC. Ownership status of the LLC is designated by holding an NFT in the specific collection representing that property. Initially, Revolve is the managing member and holds fiduciary responsibilities. This can be changed by a supermajority vote of its members. Ownership is recorded with the county assessor’s office and all legal records are available to members at any time. Properties are never pooled.

Revolve extends a credit line for repairs and minor upgrades. With major repairs which exceed authority limits given to the management company, a vote occurs between members of the LLC. If the majority votes for the upgrade, it’s done. If not, it isn’t. If a repair is required to maintain habitability for tenants, as required by lease agreements, legal obligation takes precedence over voting. 

Revolve offers loans to DAOs to cover repairs of this nature, repaid through rental income. Dividends resume once loan repayment is fulfilled. Appreciation from repairs will be factored into future value. This is an important question when deciding on replacing the MM. If a MM hires a company or decides to manage it themselves and does not have the funds to cover an upgrade, they can be in legal trouble for not complying with the DAO’s vote. Externally managed properties are encouraged to maintain sizable escrow accounts for unexpected events.

Most likely not. If the cost of property maintenance or repairs exceeds the monthly rent for any given month, all proceeds, after management deductions, go towards paying off any outstanding cost. Fulfilling debt obligations first helps a property return to profitability as quickly as possible by minimizing interest paid. Repairs often add valid to a home. This is accounted for.