Tokens and Mechanisms Block66
Introduction
Block66 introduces the first platform where lenders can access a marketplace of vetted borrowers looking for mortgage finance. This marketplace is public, transparent, and highly automated, so lending is streamlined, with lower costs, and lower risks. Each loan is represented as a pool of “proof of loan” (PoL) tokens that can be individually resold to investors, providing lenders with liquidity, and empowering a diverse pool of investors. Block66’s blockchain and smart-contract technology make it possible for lending contracts to be tokenized, and the flexibility and liquidity provided by Block66’s asset-backed tokens will open the mortgage market to a more diverse pool of investors.
What makes Block66 unique?
- During phase 1, Block66 will be a matching engine for borrowers and lenders promising a three-fold saving on conventional mortgage application times. Block66 aims to become the world’s most sophisticated platform for brokers, and lenders to operate efficiently to the satisfaction of borrowers. All loans will be issued on the blockchain, and funds are drawn down via the resulting smart contract.
- During phase 2, Block66 will also become the platform of choice for lenders to create tokenized mortgage-backed securities on the blockchain. This solution will share much technically and legally with BrickBlock.
Summary
The mechanics involve an interplay of tokens, all of which implement the ERC20 token standard. Every B66 token represents a portion of the network and captures its value. A successful match of borrower and lender creates a smart contract through which funds are collected and distributed. The democratization of the network, the issue of loans on the blockchain (Phase 1) and securitization of those loans (Phase 2) are all blockchain reliant.
Block66 Tokens (B66)
Block66 Token (B66) is used to produce Block66 Network Tokens (BNET). As with B66 held by Block66 [company] holders who activate their B66 will begin generating BNET which can be sold to other platform participants. Platform users require BNET to pay platform fees hence the active market for these tokens.
The price of BNET will be set by Block66 [company]. In order to secure B66 tokens, contributors must send Ether (ETH) to the address provided at the Token Generation Event (TGE). B66 tokens provide no utility to the holder unless sent to a special smart contract where the tokens become “activated”.
Block66 Network Tokens (BNET)
BNET tokens are used to pay for services on the Block66 network. BNET are produced and purchased by the network users at the point of transacting on the Block66 system. After the fundraise Block66 [company] will retain 40% of the total Block66 token supply. While producing and selling BNET is the primary revenue generating mechanism for Block66.
All B66 token holders can submit their B66 holdings to the Block66 platform, to produce and sell BNET to the network participants thereby giving holders the ability to draw a share of fees from the network. Block66 will set the price of the BNET token sold via the platform in such a way as to maximize the platform usage while capturing maximum profit for BNET “producers.”
Proof-of-Loan (PoL) Tokens
The “proof-of-loan” token is generated once a mortgage is fulfilled. A PoL token confers to the holder a legally enforceable claim on all outstanding interest and principal payments in either one mortgage loan or a bundle, depending on the composition of the PoL token.
These rights also include the right to engage and instruct debt recovery agents in the event of a borrower default.Block66 is looking to work closely with BrickBlock as they develop an exchange for trading tokens linked to real-world assets, such as a Block66 mortgage-linked token.
Network Fees
Block66 Network fees are payable exclusively in BNET tokens. Example of fees include: borrower application submission fee payable by the broker (to cover the cost of third-party KYC, credit checks, appraisal, pest report etc.), unlocking the loan provided by the lender, modifying (eg splitting or merging with other assets) the Proof of Loan token (PoL), or retrieving ETH-denominated loan repayments from the PoL smart contract.
Token Generation and distribution
Total token supply: 305m Circulating supply: 155m Breakdown of tokens held by Block66:
● 120m (40% of supply) held by Block66
● 30m (10% of supply) for team, advisors and bug bounty
Public pre-sale: 50m tokens with a 33% discount at $0.10 per token for a total of $5m Main sale: 105m tokens at $0.15 per token for a total of $15.75m.
“This article was created in exchange for a potential token reward through Bounty0x”
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