The Monasterion Network has one main token, a rent token. It's intended to be the way Nodes fund their own creation. #### **How Rent Tokens Work** **1. Creation and Nature of Rent Tokens:** - **Initial Funding Only:** - Rent tokens are created exclusively during the initial funding phase of a new "node" within the network. - **Soul-Bound Tokens:** - These tokens are **soul-bound**, meaning they are permanently linked to the individual who acquired them and cannot be transferred or exchanged. This ensures the tokens are used within the network's intended framework and prevents certain types of high frequency speculative trading. **2. Core Functions of Rent Tokens:** - **Burning for Housing Access:** - **Personal Use:** A token holder can **burn** (permanently destroy) their tokens to redeem housing in any node within the network, provided they have been accepted into that node. - **On Behalf of Others:** Tokens can be burned on behalf of someone else, granting them housing access after they have been accepted into a node. - **Community Support:** Nodes can choose to burn tokens internally to provide housing for individuals free of charge, promoting altruism and community support. - **Staking for One-Time Cash Dividend:** - **Long-Term Investment:** Holders can **stake** their tokens in a node's "gift pot," which is a fund comprising all the assets accumulated from the community's gift clauses. - **Irreversible Staking:** Once a token is staked, it cannot be unstaked or used for any other purpose. The holder commits the token to the node's gift pot indefinitely until redemption. - **One-Time Dividend Payout:** At the end of each month, the total money in the gift pot is divided by the number of tokens redeemed (i.e., staked and opted for cash payout) that month. Each staked token is eligible for a one-time cash dividend calculated as: - **Cash Redemption:** Token holders can choose when to redeem their staked tokens for the cash dividend, making it a strategic, long-term investment decision. **3. Asset Details and Analysis:** - **Variable Purchase Cost, Uniform Utility:** - **Different Purchase Prices:** The cost to acquire a rent token varies based on the USD cost of the house in the node where the token is purchased, due to differing property values across locations. - **Uniform Utility:** Despite varying purchase costs, all rent tokens provide the same utility—access to one month of housing anywhere in the network or the ability to stake for a one-time cash dividend. - **Pricing Formula:** - **Rent Token Price:** Single Rent Token = $(Cash Cost of Real Estate for Node)/(# of Beds * 12(months) * 30 (years)) This means that the cost of a rent token depends on the asset it is being used to purchase - **Number of Tokens Sold:** The Number of Tokens sold to raise a node then is simply # of Beds * 12 * 30 - **Explanation:** This formula distributes the cost of the house over the total number of bed-months in a 30 year mortgage. - **Arbitrage Mechanism:** - Due to the cross-network uniform utility value of the token there are two arbitrage opportunities built into the network. - 1. People can buy tokens from nodes raising in lower cost areas and use them in what would traditionally be higher cost areas (Ex: You help a raise a house in Detroit, and use the tokens at a Coop in Paris). - This action is making several statements : As a network it's saying that there is value in community outside of the global coastal cities, As a node it's essentially saying that living in the network is such a different experience than not living in the network that external pricing mechanisms are not capable of adequately pricing it. - 2. People can buy tokens in cheap areas and receive a higher dividend by staking in a prosperous house. - This action essentially allows for the success of a house to pay it off quickly while also allowing for more housing to be created as a result * **Anti Inflationary Base Needs Hedge** * Because of the nature of Nodes, Rent tokens can act as a sort of hedge against inflation locking in the cost of the bare essentials by purchasing the right to them upfront in advance. For example if you for some reason thought that there might be an inflationary trade war on the horizon for some reason..., and that as a result Rent prices were going to rise in the future you might purchase a surplus of rent tokens as a way to lock in your living expenses.