Legal Wrappers

A variety of systems exist to track property ownership. Until property can be directly held through a digital representation, county and government systems of ownership rights must be managed. We align these systems by wrapping the property in a legal entity whose operating agreement or similar state-recognized documentation allows for the representation of the assets onchain.

Many different styles of owning assets onchain have been theorized and/or implemented, each prioritizing and enabling different powers. Trusts, LLCs, unincorporated and incorporated DAOs, and partnerships can all form the basis for representing real property titles in the form of NFTs.

In the process of selecting the legal wrapper, asset owners will consider different degrees of certainty, liability, ease of use, and risk offered by various options for digitizing the rights and duties of asset ownership.

At the current stage, Fabrica adopts a single legal wrapper that has been developed over the past eight years and released as open source: The Fabrica Trust.