Fabrica's trust model was developed based on a variety of inputs and theory, and honed over five years of practice and experience, used in the transfer of several hundreds of thousands of dollars worth of real estate.
Trusts involve two positions, a beneficiary and a trustee. In the Fabrica trust, the trustee has no substantive rights or duties besides, to the extent required in certain jurisdictions, effectuating the wishes of the beneficiary. The beneficiary (defined as the person/entity owning the token) has full control and ownership of the property, and is entitled to any rights of ownership that is legally bestowed on the owners of the property.
The Fabrica trust is defined as a "nominee trust." The explicit purpose of the trust is to allow the token holder to own and to manage ownership of the specified property using blockchain.
Fabrica's trust model is like a signpost at the county records. Wherever ownership of the NFT goes, beneficial ownership follows, while ownership on record stays within the trust.
This trust model, while somewhat exotic, allows for as close of a connection as possible between the NFT and the property. In this model the nominee trust is not treated as an independent entity from the beneficial owner for tax or legal purposes, and does not involve a third party trustee with decision making rights. It is as close to a decentralized RE3 model as has been conceivable up to this point.
Updated 3 months ago