Homium creates a new institutional asset class: investable owner-occupied home equity, one which could not exist before the emergence of blockchain.
By combining smart contracts on a public blockchain with a compliant legal structure, in an open business ecosystem for lenders and investors, homium has created a highly scalable machine which can digitize and store the collective value of home equity.
The assets which back the token are protected by US real estate laws, and held by an independent trust which uses all proceeds to retire outstanding homium with dollars, providing liquidity and appreciation without the need for a secondary market.
The minting and retirement of tokens is overseen by an independent, not-for-profit mutual benefit corporation or Trust with strict bylaws and a single mission to protect the integrity and security of the token and its eventual redemption.
If homium the business were to fail, the homium Trust would remain and continue to back every token in circulation.
the value of coins
ħ only changes when loans are repaid and tokens are retired, by a rate proportional to the realized appreciation in the Trust’s portfolio over its basis. When home values appreciate, the ratio of qualified assets to outstanding coins increases.
The trust is bound by both immutable smart contracts and by law to buy and issue tokens at this new rate, from token holders on exchanges or through smart contracts, merchants who wish to settle homium purchases in dollars, and by funding new originations.
In this way, the liquidity available to token holders from the trust appreciates with the value of its assets and passes it on (and manages the currency supply) through token retirement.
Homium is an open architecture ecosystem that invites institutional investors, loan originators, and licensed closing agents to bridge the world of real estate and the blockchain.
The network can scale as quickly as new capital can satisfy demand for a revolutionary new lending product:
An interest-free, payment free home loan.
Can access their home equity without incurring new or higher payments, refinancing, or exposing themselves to rising interest rates
Can offer a payment-free home loan to re-fi customers, or a supplemental 2nd for clients purchasing a new home, growing their business without lowering standards.
Have a front seat to the minting of new homium, and can verify in real time that every token is backed by owner-occupied real estate in California
Earn fees from network participants while they bring their escrow businesses into the 21st century