# Collective Ownership

## 3.1 What is the Decentralized Trust?

The trust is a legal entity that owns all AuraBnB properties, managed by the DAO for the benefit of AURA token holders. You don’t own a house—you own a stake in the trust’s portfolio.

* Analogy: It’s like a mutual fund for vacation properties—your investment supports the whole, not a single asset.
* Structure: Properties (e.g., Guayabo Glass House) are titled to the trust; token holders are beneficiaries sharing profits and governance rights.

## 3.2 Why a Trust?

Direct ownership isn’t practical:

* Drawbacks of Individual Ownership:
  * High risk: One property’s failure (e.g., storm damage) hits you hard.
  * Complexity: You’d handle taxes, upkeep, legalities.
* Trust Advantages:
  * Diversification: A stake in all properties mitigates individual risks.
  * Scalability: Adding new properties grows the trust’s value effortlessly.
  * Simplicity: The DAO and trustees manage operations.

## 3.3 Trust Mechanics

* Legal Framework: Likely based in Guernsey, a jurisdiction friendly to blockchain trusts.
* Ownership: The trust holds deeds; token holders influence it via the DAO.
* Trustees: Elected by the community, they handle compliance (e.g., taxes, permits) but follow DAO directives.
* Revenue Flow: Booking profits go to the trust, then distribute to token holders (75%) and reinvestment (25%).
* Example: If Guayabo earns $300,000 in 2027, $225,000 goes to AURA holders proportional to their stake.


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