WHITEPAPER

A New Way to Invest in Real Estate

using blockchain technology

1

Instead of buying property directly, investors earn money from real estate income through a special token called BESD.

2

The project is carefully managed by a Board of Directors to make sure everything stays secure, legal, and efficient.

3

Investors can enjoy passive income from real estate without having to manage properties or get involved in decision-making.

4

BlockEstateDAO combines modern blockchain tools with real-world real estate to make investing simpler, safer, and more accessible.

Table of Content

General Structure

Purpose of the DAO

General Structure of BlockEstateDAO

The Logistic Park Santo Domingo

Ownership and Operational Framework

Revenue Generation

A Proven Operational Model

Legal Status of Logistic Park Santo Domingo

Vision and Mission

Protocol

General Overview

How It Works

Governance & Decision-Making

DAO Rules

Purpose of DAO Rules

Role of the Board

Validator Responsibilities

Importance of DAO Rules

Data Security for Investment Proposals

Liquidity Pool Management

Fund Management and Allocation

Interest Rate Adjustments and Incentives

Liquidity Provider Benefits

DAO Treasury Management

Security and Investor Protection

Governance and Fund Disbursement

Revenue Distribution

Revenue Sources

Allocation Strategy

Revenue Distribution Schedule

Token Sales

Overview of the BESD Token Sale

Token Distribution Model

Fund Allocation Strategy

Sale Mechanism and Compliance

Overview of the BESD Token Sale

Governance and Transparency in Token Sales

Investor Benefits

General Structure

Purpose of the DAO

Tokenized Real Estate Investment

Specialising in real estate investment through tokenized economic participation, with a focus on providing secure, transparent access to income-generating property assets. Compliance and operational efficiency are maintained through a structured governance model led by the DAO Board.

Smart Contracts & DAO Board

Blockchain-based smart contracts automate profit distribution and maintain a secure, transparent financial record. While decentralised technology increases efficiency, all governance decisions remain under the oversight of the DAO Board to ensure full compliance with financial regulations.

Revenue Rights, Not Ownership

BESD token holders do not own fractional shares of real estate assets. Instead, they hold economic rights to participate in net revenue distributions generated by the DAO’s property portfolio.

General Structure of BlockEstateDAO

A hybrid DAO model combining traditional corporate governance with blockchain-based financial management. Core components include:

Legal and Corporate Framework

  • Entity: BlockEstateDAO, LLC (Delaware-based DAO LLC)

  • Governing Body: DAO Board of Directors (Oversight, treasury management, regulatory compliance)

  • Economic Participants: BESD token holders (Revenue-sharing rights, but no governance authority)

Revenue Flow and Fund Management

  • Property ownership remains under separate legal entities managed by Capital Equity Partner Ltd.

  • All revenue-generating properties transfer net revenue to the DAO treasury, which then distributes profits to token holders based on predefined governance rules.

Token Holder Role

  • BESD token holders receive distributions from net real estate revenue but do not own or control the underlying assets.

  • Staking options allow token holders to earn additional rewards, but governance decisions remain under Board authority.

This structure ensures regulatory compliance, prevents classification as a security, and allows passive income generation through tokenized real estate revenue streams.

The Logistic Park Santo Domingo

The Logistic Park Santo Domingo represents a proposed project under consideration to become the first operational real estate asset within the BlockEstateDAO ecosystem. The DAO is currently assessing the opportunity to acquire a 99-year exploitation concession of the asset, through a rights-based structure that would allow the DAO to tokenize the revenue streams derived from the property.

This proposal is aligned with BlockEstateDAO’s long-term vision to onboard logistics and industrial real estate assets in high-growth regions through transparent, decentralized governance structures. Final onboarding is subject to legal, regulatory, and financial due diligence, as well as DAO governance approval.

Ownership and Operational Framework

1. Legal Ownership and Concession Structure
The Logistic Park Santo Domingo remains legally owned by Capital Equity Partner S.A.S., a Dominican company affiliated with Capital Equity Partner Ltd. (UK). BlockEstateDAO will operate the asset through a 99-year concession agreement that grants economic rights over the asset’s revenue without transferring legal property ownership.
2. Delegated Operational Management
BlockEstateDAO delegates day-to-day operational responsibilities to certified local property and logistics operators, under the supervision of a dedicated Compliance and Technical Oversight Unit. This unit is responsible for monitoring:
Lease and occupancy contracts,
Infrastructure maintenance,
Tax and regulatory compliance,
Profitability performance metrics.
3. Technology-Driven Execution Model
Operational flows are automated through smart contracts on blockchain, ensuring:
Transparent rent and revenue collection,
Automated deduction of operational expenses and taxes,
Real-time allocation of net income to the DAO Treasury.
This framework provides full on-chain traceability, auditability, and transparency for token holders.
4. Obligations of the DAO Operator
During the concession period, BlockEstateDAO is responsible for:
Timely payment of all local taxes and levies,
Ongoing property maintenance and enhancements,
Stakeholder and tenant relationship management,
Compliance with local laws in the Dominican Republic.
5. Legal and Compliance Oversight
Operations are audited and legally supervised by both local and international compliance firms, ensuring full alignment with Dominican law and applicable frameworks in Delaware and the UK governing the DAO’s structure and activities.

Revenue Generation

  • Annual gross revenue: $1.57 million

  • Revenue is generated through:

    • Long-term leasing agreements.

    • Logistic and industrial property operations.

    • Strategic expansion of rental space.

After operational costs and tax deductions, the net revenue is transferred to the DAO Treasury for profit distribution.

A Proven Operational Model
The Logistic Park Santo Domingo exemplifies BlockEstateDAO’s ability to integrate blockchain technology with real-world asset management. The project’s strong financial foundation supports:

  • Stable, predictable revenue streams.

  • Scalable investment opportunities for future real estate acquisitions.

  • Secure and transparent fund distribution through blockchain-based smart contracts.

Legal Status of Logistic Park Santo Domingo

As of the publication date, the inclusion of Logistic Park Santo Domingo in the DAO ecosystem is under proposal. The property remains legally owned by Capital Equity Partner S.A.S., and the DAO has not yet executed the required 99-year concession agreement.

Accordingly, revenue projections and operational models related to this asset should be interpreted as conditional and indicative. Final integration is subject to successful payment execution and formal transfer of operational rights under the concession framework agreed with the asset owner.

Vision and Mission

Vision

BlockEstateDAO envisions a future where real estate investment is democratized, transparent, and accessible to global participants.

By leveraging blockchain technology and DAO structures, we aim to bridge the gap between institutional-grade real estate investments and retail investors, creating a sustainable, compliant, and efficient investment ecosystem.

Mission

  • Modernize real estate investment through tokenized revenue-sharing models.

  • Ensure compliance by aligning DAO operations with U.S. and international regulations.

  • Increase accessibility to high-yield real estate investments through blockchain-based financial participation.

  • Enhance transparency by utilizing smart contracts for automated, verifiable revenue distributions.

  • Foster long-term growth by reinvesting in high-performing real estate assets.

The BlockEstateDAO Protocol

The BlockEstateDAO Protocol provides a structured approach to decentralized financial participation in real estate revenue streams. This protocol ensures transparency, security, and efficiency in investment management, revenue distribution, and governance oversight.

General Overview

How It Works

The BlockEstateDAO Protocol integrates traditional real estate finance with blockchain-based automation, allowing BESD token holders to participate in real estate revenue distributions while maintaining a secure and compliant governance structure.

Revenue Generation

  • Real estate assets, owned by separate legal entities, generate revenue through leasing, rental income, and asset appreciation.

  • Net revenue (after taxes, operational expenses, and fees) is transferred to the DAO treasury.

Treasury Management & Fund Distribution

  • The DAO’s multi-signature smart contracts securely manage all funds.

  • A portion of net revenue is allocated to token holders as periodic distributions, while another portion may be reinvested in new real estate projects.

Governance & Compliance​

  • Governance is centralized under the Board, ensuring compliance with U.S., U.K., and international financial regulations.

  • Token holders do not engage in governance but receive profit distributions based on their holdings.

Governance & Decision-Making

BlockEstateDAO employs a hybrid governance model, balancing decentralization with structured oversight.

Board Authority

  • The Board reviews and approves all new real estate investments.

  • The Board ensures compliance with legal, financial, and risk management requirements.

Token Holder Role

  • BESD token holders do not participate in governance but receive economic rights in the form of profit distributions.

  • Token holders may stake BESD tokens to earn additional incentives while securing DAO operations.

This approach allows real estate investments to be managed professionally, while token holders benefit from stable and secure revenue participation.

DAO Rules & Operational Framework

Purpose of DAO Rules

DAO Rules serve as the guiding principles for investment evaluation, treasury management, and compliance. These rules are designed to:

  • Ensure investor protection and prevent financial mismanagement.

  • Maintain compliance with U.S. SEC and international financial regulations.

  • Establish a clear framework for revenue-sharing and financial reporting.

Role of the Board in Establishing DAO Rules

The Board is responsible for defining and updating DAO Rules to ensure alignment with:

  • Market conditions & real estate investment best practices.

  • Legal and regulatory requirements for tokenized financial assets.

  • Long-term sustainability and risk mitigation strategies.

These rules are enforced through smart contracts and internal compliance mechanisms, ensuring fund integrity and proper governance execution.

Treasury Management & Security

BlockEstateDAO’s treasury system is fully automated via smart contracts, ensuring:

  • Secure revenue allocation through multi-signature governance.

  • On-chain transparency for all fund movements and profit distributions.

Risk mitigation strategies to prevent treasury mismanagement.

Fund Storage & Disbursement

  • All net revenue flows into the DAO treasury, where distributions are made to token holders based on their holdings.

  • A portion of funds may be reinvested in high-performing real estate projects, ensuring growth and sustainability.

  • Smart contracts enforce pre-approved disbursement schedules to ensure timely and fair profit distribution.

Revenue Distribution Mechanism

How Revenue is Generated

  • Net rental income from tokenized real estate assets is collected into the DAO treasury.

  • The Board reviews financial performance and allocates funds for distribution.

  • BESD token holders receive proportional revenue distributions based on smart contract rules.

Revenue Allocation Strategy

Revenue is distributed as follows:

  1. Token Holder Payouts: A fixed percentage of net revenue is automatically distributed to token holders.

  2. Reinvestment & Treasury Growth: A portion is reinvested into new real estate projects, ensuring growth.

  3. Reserve Fund: A portion is allocated to a reserve fund to cover market fluctuations.

Legal Notice on Token Holder Rights

BESD token holders do not acquire any legal ownership, equity, or control rights over the underlying real estate assets. BESD solely represents a right to receive economic distributions derived from revenue-sharing agreements, concessions, or licenses secured by BlockEstateDAO.

This distinction ensures compliance with applicable securities laws and preserves the token’s classification as a utility token under MiCA and U.S. SEC guidelines. Property ownership and decision-making remain exclusively under the legal entities designated as asset owners, such as Capital Equity Partner Ltd.

Token Sales & Fundraising

The BlockEstateDAO token sale provides a structured mechanism for funding real estate acquisitions and operational expansion.

Overview of the BESD Token Sale

The BESD token is a utility token designed for profit-sharing rather than governance. Token holders receive economic benefits without gaining ownership or decision-making power over DAO operations.

  • Token Symbol: BESD

  • Total Supply: 100,000,000 BESD

  • Utility: Profit distribution & staking incentives

  • Governance Rights: None (Governance remains under the Board)

Token Distribution Model

Category

Allocation %

Purpose

Pre-Sale

20%

Early-stage funding & strategic partnerships

Public Sale

50%

Open investment for global participants

Reserve & Growth

30%

Future development & strategic reserves

All tokens are distributed via smart contracts, ensuring full transparency and automated allocation.

Fund Allocation Strategy

Category

Allocation %

Purpose

Real Estate Acquisitions

60%

Purchasing revenue-generating properties

Liquidity Reserve

20%

Maintaining financial stability

Development & Operations

10%

Smart contract audits, legal compliance, and operational costs

Marketing & Expansion

10%

Community outreach, exchange listings, and investor relations

All funds are managed through DAO governance mechanisms, ensuring secure and compliant usage.

Sale Mechanism & Compliance

Investor Protections:

  • KYC/AML requirements enforced for all token purchasers.

  • Token sales structured to comply with Delaware DAO LLC and international financial laws.

  • No token holder governance rights, ensuring regulatory clarity.

Compliance with Financial Regulations:

  • U.S. SEC-compliant structure, ensuring BESD tokens are not classified as securities.

  • Legal frameworks established in Delaware, U.K., and Dominican Republic to support global investment participation.

Governance & Transparency in Token Sales

To maintain investor confidence, BlockEstateDAO implements:

  • Audited financial reports for all token sales and fund distributions.

  • Blockchain-based smart contract automation for secure fund allocation.

  • Open reporting on treasury reserves, ensuring full transparency.

Investor Benefits
  • Stable passive income through real estate-backed revenue streams.

  • Automated & transparent revenue distributions via smart contracts.

  • Regulated & compliant investment framework for long-term security.

BlockEstateDAO bridges the gap between traditional real estate finance and blockchain-based investment. Through automated revenue-sharing, a secure governance framework, and regulated tokenized financial participation, the DAO ensures a scalable and legally compliant investment model.