Collective Ownership

Section 3: The Trust— Collective Ownership Explained

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.