Property Token

Each property is represented as a standard ERC1155 token.

Token Structure

id : uint256
supply : uint256
operatingAgreement : string
definition : string
configuration : string
validator : address

Key Defining Elements Stored on IPFS

1. Definition Object: Describes what the token immutably represents.
2. Configuration Object: Provides additional information about the property and title documents.
3. Operating Agreement: Acts as the legal "firmware" of the property.

Supply and Fractional Ownership

A property, defined by an id, can have a supply of one or multiple tokens, which are fungible among themselves:

• A supply of one means there can only be one owner for that property.
• A supply of more than one means the property is owned proportionally to token allocation (e.g., owning 57 of 100 tokens means 57% ownership).

Fractional ownership (supply > 1) is currently experimental. It is designed for small groups such as friends or family members co-owning a property, not for passive investors or securities-like arrangements.

Custody Types

Beneficial ownership is determined by how the token is held, as described in detail in the Operating Agreement:

Examples:

• Token in MetaMask wallet → Wallet owner is the beneficial owner.
• Token in multi-sig → The group controlling the multi-sig.
• Token locked as collateral on NFTfi → Original owner remains the beneficial owner while under loan.

Onchain Governance Thresholds

For properties with multiple token holders, the smart contract enforces these thresholds:

Validator

The validator property references the entity responsible for verifying property claims and maintaining the NFT's good standing. Property owners elect a validator (identified by a smart contract address) to handle:

• Title verification against public records.
• Confidence scoring based on validation checks.
• Media and metadata generation for marketplaces.
• Ongoing compliance monitoring.

See Validators for detailed information about the validation process and scoring system.

Token Traits (ERC-7496)

Fabrica tokens implement ERC-7496 for crucial token traits, providing standardized onchain access to metadata. This allows applications to query the validator and operating agreement directly from the smart contract, enhancing interoperability with platforms like OpenSea.

Dynamic Traits (stored onchain via ERC-7496) are reserved for data needed for secure onchain operations. This is distinct from the Configuration Object, which contains broader property metadata stored on IPFS.