In January 2020 NBA player Spencer Dinwiddie “tokenised” his contract on the Ethereum blockchain– a throw back to the Bowie Bond.
Inspired by this, I propose: The Cabin Token.
One £35k cabin.
20 tokens issued at £1.75k each.
25% of revenue generated by the cabin (or an aggregated pool of cabins) is paid out to token holders on a monthly basis.
Token Lifetime is until 3x the initial investment is returned (£5.25k per token).
Assuming 60% occupancy and £167 rev per night (ex VAT) we have a £3,047 monthly revenue.
Which gives £762 to be paid out to token holders.
Therefore, each token holder would receive:
£38.09 per month or £457.16 per year.
A 26% ROI.
Token lifetime under these conditions: 11.48 years.
The advantage of using tokens?
Ease of trade.
This not only gives the investor flexibility but it also allows the cabin company to buy back tokens at each dip in the market. Lovely.