Bustad Introduction

Greetings, everyone!

Everybody knows that we’ve been through some tough and uncertain times fairly recently and the trend, on a global scale, shows little signs of letting up. The terms like inflation and economic downturn, which were previously largely confined to universities, have made their way into the mainstream news, which might be an indicator of the weight of the current situation.

These challenges haven’t been mitigated by governmental policies, and in some cases it seems those policies have made things even worse. Therefore, we at Bustad believe it’s prime time to provide an alternative way of stabilizing your finances in your day to day life.

Enter Bustad — What we provide

For most homeowners, their house is their biggest financial asset, but the capital is currently inaccessible since residential real-estate typically suffers from low liquidity for the average homeowner.

Bustad provides a blockchain-based solution for this issue by helping homeowners tap into this capital by creating a stablecoin backed by the real estate market (an asset that is quite resistant to the perils of inflation) and by allowing them to unlock up to 20% of that financial potential by selling that value to The Bustad Association, or rather tokenizing that value.

How it works

Once tokenization is complete, it’s applied to reducing the existing principal due on the homeowner’s outstanding debt since they now own less of the home. As a result, their monthly debt payments are reduced. Therefore, this reduction ends up keeping more cash in the hands of the consumer.

Furthermore, the consumer remains unaffected and keeps the living and collateral rights and can also repurchase ownership from Bustad at any time. To compensate for the lack of monthly payments or interest, Bustad purchases the property at an independently assessed, discounted market price. After the transaction is confirmed, the existing owner and the Bustad Association become legal co-owners of the property and share in the financial benefits of any price appreciation.

The user can also sell the property, either after buying back Bustad’s part, i.e. becoming the sole owner of it, or selling it in a way where Bustad remains a co-owner of the property.

Where and why?

Bustad is focused on the Norwegian residential real estate market.

Why Norway? In terms of economy, politics and social issues, Norway is one of the most stable countries in the world. This creates a safe, robust, and healthy real estate market. It is also one of the strongest economies measured in GDP per capita.

It also has:

• Low unemployment at 4,2 %.
• The world’s largest sovereign wealth fund.

Moreover:

• 80 % of the residents own their own home.
• 6,1 % yearly average growth in housing prices since 2003. Only minor corrections.
• A highly transparent property market, with digital infrastructure and public records, makes it possible to estimate housing prices in centralized areas correctly.

In the past 19 years, Norwegian housing prices have had a yearly growth of 6,1 % and have only seen minor corrections. Even during the financial crisis in 2008, the prices merely dropped about 8% and were regained in Q2 of 2009.

So, stability of the market and high availability of the asset in question makes Norway the ideal country to focus our efforts on.

The Bustad Association is a non-commercial, self-owned legal entity whose purpose is to create a stable payment token while ushering forth a more democratic and sustainable real estate market.

The Bustad Token

The Bustad coin won’t be your typical stablecoin because it will become the world’s first token that is fully backed by a portfolio of real estate assets. The coin is priced based on the current market value of the properties owned (plus additional liquidity on hand), making it a more stable store of value and hedged against inflation.

With this approach, Bustad is providing consumers and investors with a currency that protects their purchasing power. And as Bustad increasingly adds assets to this portfolio, token holders will be able to view these assets on the blockchain — providing complete transparency and auditability.

The token is based on Ethereum and users will be able to mint their own tokens on the network by using traditional cryptocurrency. Moreover, the properties are bought through a company owned and controlled by the Bustad Association and all proceeds from the company go into Bustad’s liquidity pool which will then either be used to buy more properties or to buy back Bustad coins.

Bustad Governance Token

$EIG, i.e. the Eigar token is Bustad’s governance token of which 100,000,000 will be created at maximum and will be given to early minters of the Bustad coin (the regular one), with which they will have a certain amount of influence over the Bustad protocol. This serves to incentivize participating in the network.

The earliest token minters will receive governance tokens corresponding to the amount of Bustad coins they mint (1:1). For every 25M Bustad coins minted, the amount of governance tokens received is reduced by 50%. Early minters will have their trust rewarded with more governance tokens, thereby giving them greater influence over the protocol.

Closing Thoughts

This project is meant to decentralize and democratize the real estate market by lowering barriers to entry through blockchain based technology. The specifics of our solutions are perfectly suited for those who are financially struggling due to debt, increased living costs, don’t have many refinancing options and finally, those who wish to enter the real estate market either permanently or simply to upgrade their property.

You can find all the additional info through the following links:

Website | Twitter | Telegram | Whitepaper | App