Fungible Tokens (FTs)

Asset & Security Tokens

Whimsy tokens are fungible tokens on a locked policy. That means that there will be a finite number of tokens issued per property, which will stay constant and represent fractional ownership of the property. Each token represents partial ownership of a property by an individual, carries detailed information about the property, and, in the future, can be staked as collateral to take on loans with 3rd party loan providers.

The Token Offering is constructed & registered using CIP-0068 FT Standard & CIP-0026 Off-Chain Registry for Cardano. Leveraging a home grown minting solution and applying guardrails. The following Guards are used to comply with AML & financial regulations:

• 1% Ownership: Minting/Offering of 99% of the ownership to be sold to the community. Whimsy will own/hold 1% of a property's tokens to maintain voting power that is necessary to facilitate and manage the assets under management..

• Mint Limit: a limit on the number of FTs' (shares of a home) that an eligible user can purchase.

• Token Locking: tokens can be locked and unlocked by the locking authority (Whimsy). This is important when conducting ATO offerings. Tokens will be locked with in a Cardano Smart Contracts and not removable from the platform until an on-chain oracle is referenceable.

• Token Burn: tokens can be "burned" or "negative minted" by Whimsy. This is done by supplying a negative value to the token in the token's policy. This will be used while the policy is still open and available to changes. A scenario where this would be applied is on the occasion that a seller doesn't wish to extend or backs out of the sale of a property. Funds will be refunded and tokens will be burned.

• Smart Contract Burning: The use of smart contracts to automate the claw back of the tokens and update the CIP-68 token supply to remove the tokens from existence. An example of when this would happen is when a market review for the properties under management is completed every 6 years. If selling the property is the better option then the decision would be made at that time.

Property Metadata

When registering via the CIP-0026 Off-Chain Registry & CIP-67 Asset Name Label Registry, every token has its own metadata labels submitted as on-chain JSON that references our off-chain data. Property data is hash encoded on to the metadata of its respective token. The off-chain data the token is tagged to reference is being kept off-chain for the following reasons:

• Data Authenticity: Real Estate property data will be recorded after every time a property is listed to Whimsy. The accuracy of this data must be cross-referenced with the Multiple Listing Service (MLS), and third-party market analytics tools.

• Cost efficiency: The cost to store data on-chain is significantly higher than off-chain storage for the sheer size of the files.

• Fair Market Value: Property market value will be pulled and calculated monthly.

• Incorporations: All documents associated with the property business entity such as operating agreement, business filing, and, but not limited to title & deeds.

Eventually, Whimsy plans on migrating any and all property metadata on-chain as once we establish a real estate oracle to house all this data. Giving us and the community a resource to reference and update so that we can correlate historical data.

Photo of the Property

Every home that is fractionalized via FTs on the Whimsy platform will have a 15MB image of the property uploaded to IPFS and linked back to the token on registration. The FTs will be a visual representation of the property they represent, which owners can view directly in their wallets.