This explainer document explains the "Frabric protocol", what's so special about it, and the problem(s) it solves and how it works in its entirety.
The world of real estate hasn't materially changed in hundreds of years. To buy a house or any kind of property - typically you must buy all of it. This has enabled banks and other financial services businesses to provide much-needed loans and lending services to investors and the house-owning market. The Frabric Protocol changes how we understand property ownership. Imagine being able to invest and own any property. Imagine being able to vote on important decisions and affect real change in how your investments grow. Imagine getting the best possible returns on your real estate investment portfolio with best-in-class property management. Imagine Frabric.
Frabric is a protocol that enables decentralized ownership of real-world assets, it does this by creating Threads. A Thread is a self-contained revenue-generating Decentralized Autonomous Organization or DAO that is capable of communicating and legally owning a physical entity; like real estate!
Tokenizing a property is the process in which a property currently held by its owner is converted into a Thread that's run and managed on the Frabric Network. To begin the process; a network provider like Fractional Finance will vet the incoming property and current owner. After the vetting process (which may include a home inspection report, and debt search), a dedicated corporate vehicle will be designated to hold the incoming property. This Corporation will have a Custodian and Guardian (designated beneficial owner) setup; and will be prepared to receive the incoming property.
On the blockchain side; The network provider will collaborate with the property seller to ensure that the initial Thread contract is well defined, and has the parameters the original owner would like to show in the initial offering. After determining the parameters of the thread, it's created automatically from the Platform Contract which also creates a "twinned" NFT (Non-Fungible Token) that is the designated owner/key of the Thread Contract. The NFT is exchanged with the current property owner for the Property; which will be held in trust by the corporate vehicle.
The NFT does not provide any value itself and has a lifetime of exactly 2 weeks from the creation date before it reverts back to the network provider's custody. This means that the NFT is not necessarily conveying value directly and cannot be held and traded in perpetuity. However the NFT can be transferred to a Thread's Contract address; which if done will "unlock" the Thread, and transfer ownership of all tokens to the NFT transferor's wallet address. At this point, the Thread is now active and tokens can be sold and traded using our Decentralized Exchange (DeX).
A Thread is essentially a self-contained corporation that lives on a blockchain. Threads have a number of different capabilities, but its primary purpose is to act as a bridge between a corporate entity in the "real world" that contains a given property and has de-facto ownership over it.
This is key, as it enables all other parts of a Thread to function and to provide a mechanism for investors to enact real material change on their investments.
A Frabric Custodian is an individual or organization who as a director or officer of a Thread Trust, this individual's sole responsibility is to listen for directives through the threaded bridge communication layer for vote results. Some votes may not require Custodian intervention, such as changing the name of the Thread; or adjusting who has permission to invest in the threaded property. However many votes, such as rent increases, major renovations or introducing new service providers may require physical actions on behalf of the token holders. The Custodian is elected and hired by the Governors, and may be replaced by a vote by the Token Holders of the Thread.