Prop3 Demo

The Spaces presented an early demo and roadmap for Prop 3, a tokenized real estate marketplace integrated with the Home 3 ecosystem. Host Shawn and lead developer Max walked through wallet connectivity (via WalletConnect) to hundreds of wallets, ERC-20 and NFT handling, and a testnet-based workflow transitioning to Ethereum mainnet. The app adds transaction history with CSV export, a dynamic marketplace listing properties with rich datasets (documents, inspections, occupancy, performance), server-side price history, and a dividends screen estimating monthly rental payouts proportional to ownership. HTS is the platform token for transactions, while final settlement may use stablecoins for price stability. The team is actively aligning with SEC compliance (likely SPV structures and KYC), exploring offerings that may vary by jurisdiction and regulation. UX will span mobile and a more comprehensive web app, plus fiat on/off-ramps and a beginner-friendly custodial option. Home Scout AI will permeate Home 3, Prop 3, and Loan 3 to research properties, coordinate transactions, and improve customer support. Target: marketplace working internally by end of July; public availability aimed around Q4, alongside partnerships in New York and Qatar.

Prop 3 Twitter Spaces Demo – Comprehensive Notes and Highlights

Participants and Roles

• Sean (host, product/strategy, compliance and partnerships lead)
• Max (lead developer for Prop 3; backend, wallet, and data infrastructure)
• Calvin (community member)
• Yao Fan (community member)
• Ken (community member)
• Andre (team member mentioned; did not speak)

Executive Summary

The team presented an early, working demo of Prop 3, a tokenized real estate marketplace integrated with external wallets and a growing data backend. The app currently runs on Ethereum testnet with mock transactions, supports WalletConnect, ERC-20 token transfers, and NFT holdings, and showcases early UI flows for portfolio, holdings, activity, dividends, and marketplace/property detail screens. HTS will be the platform token at launch, though settlement mechanics may incorporate stablecoins to mitigate market impact and satisfy compliance/operational needs. A robust data layer (database + S3) is in development to serve dynamic property metrics and document management. Regulatory alignment (largely under SEC frameworks and SPV structures) is a major ongoing workstream; the team may enable mock transactions before full approval. A companion web app will offer more comprehensive tools; the mobile app will focus on ease-of-use for mainstream users. Home Scout AI (agent-based) will be embedded across the ecosystem (Home 3, Prop 3, Loan 3) to assist with research, comparisons, and transaction coordination.

Demo Scope and Current Functionality

• Environment and tokens
  • Running on Ethereum testnet; mock transactions use ETH for testing because HTS doesn’t exist on testnet.
  • Production: All Prop 3 transactions are intended to use HTS as a primary utility token.
• Wallet connectivity and assets
  • WalletConnect integrated; tested with MetaMask, Coinbase Wallet, Trust Wallet, and Uniswap’s mobile wallet; target coverage: hundreds of wallets supported.
  • Users can send/receive ERC-20 tokens and hold/view Prop 3 NFTs in-app.
• Core app areas (early UI/UX; many placeholders)
  • Overview: Portfolio value aggregation (ERC-20 + HTS + property shares), planned pie chart by property, and a performance chart (aiming for 1+ year of history).
  • Holdings: Tokens and NFTs owned; send/receive/buy/sell entry points; NFT cards will show richer metadata later.
  • Activity: Ledger of all Prop 3-related wallet actions; export to CSV for taxes/financial statements.
  • Dividends: Estimated monthly rental revenue per user, proportional to ownership (NFTs/tokens), net of taxes and admin fees.
  • Marketplace: Property list with price per share, token market cap, current appraised property value, size/units, total supply, and tokens available.
  • Property details: Expected returns, property specifics (size, units, admin fees), investment performance from backend data, downloadable files (occupancy reports, monthly statements, inspections), and transaction event logs with blockchain hashes.
• Error handling
  • Demonstrated failed approval in an external wallet during purchase; user can back out and retry; app reflects success/failure with an event log; no token loss.

Data Infrastructure and Server Functionality

• Database + S3 storage for dynamic property data and documents
  • Dynamic metrics updated daily/weekly/monthly (e.g., occupancy, inspection updates, performance).
  • Static metadata separated from dynamic data; updated regularly.
  • Objective: arm users with actionable information (e.g., avoid properties with low current occupancy).
• Backend services
  • Server will fetch token prices (e.g., ETH, HTS) on a schedule and provide historical charts for clients.
  • Historical data will also cover NFTs/property shares for portfolio performance visualization.

Marketplace Design and Price Dynamics

• Primary and secondary phases
  • Initial offering: team sets a list price; may structure NFTs in share “blocks,” with early investor discounts typical of capital markets.
  • Secondary market: open order-book style trading; price per share becomes dynamic, driven by supply/demand.
• Valuation and market cap interplay
  • Property value is appraisal/sale-based; the market cap of property tokens/NFTs may trade above or below based on perceived dividend yield and performance (e.g., occupancy trends).
  • Prices will ultimately be referenced to USD value while trading pairs (e.g., HTS/ETH) can influence share pricing mechanics; specifics under further design.

Token Model, Settlement, and On/Off-Ramps

• HTS utility and ownership representation
  • HTS is planned as the primary utility/fuel for the ecosystem and transactions within Prop 3.
  • Property interests may be represented as NFTs or property-specific tokens; the mix is under evaluation (e.g., NFTs for longer holds; fungible tokens for more transactional use-cases).
• Stablecoin considerations
  • To avoid selling large amounts of HTS to fund asset acquisitions (which could impact price) and to align with compliance/accounting, final settlement for property purchases may occur in stablecoins.
  • HTS would still power platform utility and potentially represent ownership; final mechanism is being modeled.
• Fiat access
  • Planned on-ramp/off-ramp integration to enable direct fiat purchases (e.g., card-to-stablecoin) and optional custodial wallets for mainstream users who don’t want seed phrases.

Regulatory and Compliance Approach

• SEC and SPV frameworks
  • Most US offerings are expected to fall under SEC-regulated exemptions/registrations; structures will likely utilize SPVs.
  • Some offerings may use compliant crowdfunding exemptions; jurisdiction-dependent.
• KYC/AML
  • KYC is most likely required for real estate securities offerings; exploring structural alternatives, but current expectation is mandatory KYC for regulated offerings.
• Phased rollout
  • If full compliance is not finalized at app readiness, the team may run “mock transactions” to test UX flows while finalizing approvals.

AI Integration Across the Ecosystem

• Home Scout AI vision
  • An agent-based AI (“Scout”) will operate across Home 3, Prop 3, and Loan 3 to:
    • Research properties, summarize metrics, compare opportunities, and surface insights with clear disclaimers.
    • Coordinate transaction workflows end-to-end (contracts, escrow, title, loan brokering), reducing delays and improving transaction management.
  • AI agents specialized by domain (contracts, escrow, title/insurance, financing) will act as a swarm to progress tasks and maintain timelines.
• Value proposition
  • Improved transaction coordination aims to reduce fallout from human process failures (e.g., mortgage delays), protecting investor returns and closing reliability.

Web vs. Mobile Experience

• Mobile app
  • Prioritizes ease-of-use and mainstream onboarding (including optional custodial experience); covers core actions.
• Web app
  • More comprehensive toolset for analysis and active trading on the open marketplace; deeper data visualization and documentation access.
• Seamless integration
  • Expect tight interoperation: mobile for convenience; web for depth.

Roadmap and Timelines

• Near-term development
  • Next two weeks: database and S3 setup for dynamic property data and document storage (photos, reports, statements).
  • Backend services for price polling and historical charts.
  • Marketplace functionality: listing flows, detail screens, and error-resilient purchase flows.
• Targets
  • Max’s target: marketplace working by end of July (framework largely in place; speed expected to increase).
  • More to show in August.
  • Public availability: aiming around Q4 (subject to compliance and product readiness). Mock transactions may run earlier to refine UX.
• Demos
  • Weekly Spaces updates and iterative demos; expect meaningful evolution from this early framework.

Q&A Highlights

• Wallet support (Yao Fan)
  • WalletConnect enables hundreds of wallets; tested with MetaMask, Trust Wallet, Coinbase Wallet, and Uniswap’s wallet.
• KYC requirement (Yao Fan)
  • Likely yes for SEC compliance and given real estate is typically a security; jurisdiction-dependent; exploring structures but expect KYC at launch for regulated offerings.
• Web availability (Calvin)
  • Yes, a web platform is planned and will be more comprehensive than mobile, especially for marketplace trading tools.
• AI in Prop 3 (Calvin)
  • Yes; same AI approach as Home 3: research, comparisons, insight generation; integrated agents will assist across the transaction lifecycle.
• Customer support (Ken)
  • Full customer support, including in-app contact and likely an AI chatbot triage, will be added later in development.
  • Backend will include contextual metadata with support requests (e.g., property screen context) to speed resolution.
• Availability of apps (Calvin)
  • Home 3 is live (mobile app + web at homethreesuite.com/dashboard) for US listings; Prop 3 is in demo; aiming for Q4 public availability.

Business Development and Partnerships

• New York
  • Working closely with an advisor; exploring NY properties for early listings; aligning transactional flows with regulations.
• Qatar (QFC)
  • Ongoing talks to open a branch; meeting scheduled Monday. Goal: operate under QFC with a pipeline connecting US buyers to Qatar properties.
  • Local partner (licensed broker) already executes offline fractionalized real estate; intent is to bring these into Prop 3.
  • Macro thesis: Qatar’s waterfront development (akin to Dubai) seeks Western capital; Prop 3 can help channel cross-border investment.
• Ecosystem growth
  • Continued outreach to real estate investors/brokers; broader market awareness of tokenization (BlackRock, JPMorgan commentary) is supportive.
• Fundraising
  • Ongoing; market has been choppy; demo expected to catalyze investor interest.

Investment Mechanics and User Experience Considerations

• Dividends
  • Monthly distribution of net rental proceeds proportional to ownership (e.g., own 5% of property tokens/NFTs → receive 5% of net rent after taxes/fees/admin).
• Price behavior and strategy
  • Real estate-backed tokens/NFTs may offer stability relative to broader crypto cycles; users could rotate HTS into property shares during downturns and back during rallies.
• Liquidity and funding bars
  • Listings may include progress bars and time limits to hit funding thresholds, reflecting real-world urgency in property acquisitions.
• Pre-construction and phased sales
  • Builders can list pre-completion; investors access earlier phases with potential discounts (analogy to ICO/IPO mechanics, but for real estate).

Risks, Dependencies, and Open Questions

• Regulation
  • SEC and jurisdictional rules remain fluid; final structures (offerings, custody, KYC/AML, disclosure) will shape UX and listing types.
• Token design and settlement
  • Mix of NFTs vs fungible property tokens; potential stablecoin settlement; detailed mechanism under active design to balance usability, stability, and compliance.
• Market infrastructure
  • Order-book implementation and pricing feeds; ensuring transparent USD-referenced valuations while trading in crypto pairs.
• Data integrity
  • Accurate, timely dynamic metrics (occupancy, inspections) and document management are critical for investor decisions.
• Timeline realism
  • Full “total vision” (Prop 3 + Home 3 + Loan 3 + escrow + rental) spans years; staged delivery prioritized.

What’s Live Today vs Coming Soon

• Live now
  • Home 3: consumer-facing property search (US listings), app and web.
• Coming soon
  • Prop 3: tokenized real estate marketplace (testnet demo today; target Q4 for broader availability, subject to compliance). Mock transactions may precede full launch.
  • Expanded geographies (e.g., Qatar) and additional listing pipelines.

Action Items and Next Steps

• Development
  • Finalize database/S3 for dynamic property data and doc storage; expand dividends/portfolio history; refine marketplace detail screens and error handling.
• Compliance
  • Advance SEC-aligned offering structures (SPVs, KYC/AML), nail down settlement mechanics (stablecoin vs HTS), and prepare for mock/live phases.
• UX and onboarding
  • Implement on/off-ramp partners; enable optional custodial accounts; design comprehensive support (AI chatbot + human escalation).
• AI
  • Build out Home Scout AI agents and cross-app context persistence; add research/comparison features in Prop 3.
• Partnerships
  • Progress QFC/Qatar branch and NY advisor initiatives; curate initial property inventory for launch waves.
• Community
  • Solicit feature requests (e.g., support tools, analytics), run weekly demos, and expand beta testing with mock transactions.

Key Takeaways

• The framework is up and running on testnet with wallet connectivity, basic marketplace flows, and dividend/portfolio scaffolding.
• HTS is the platform token; stablecoin settlement is under consideration to stabilize operations and comply with regulations.
• The team is building a robust data and document layer for transparency and better decision-making.
• Regulatory alignment (SEC, SPV, KYC) is a top priority; mock transactions may bridge to full launch.
• Web will complement mobile with deeper tools. Home Scout AI will assist across discovery, analysis, and transaction coordination.
• Near-term: database/storage build-out, marketplace polish, pricing history services, and expanding demos; medium-term: Q4 availability (subject to compliance), plus early property pipelines (NY, Qatar).