DDX Global & Zhuzh Designs Announce Tokenized Development Project
Dubai's 'Desert Pearl' project brings luxury to the desert and real estate to the blockchain.
At first glance, real estate development might seem completely unrelated to digital development. However, according to some, the virtual blockchain will be integral to the future of creating physical projects. DDX Global, a tokenization consultancy, and Zhuzh Designs, a bespoke architecture and design company, certainly think so, and are bridging the gap between the concrete and the virtual with their new ‘Desert Pearl’ development project.
An ecotourist attraction inspired by Dubai’s heritage and natural beauty, this project is possibly the largest experiment in combining real estate and tokenization yet. This newly announced desert city will include 1,000 hotel rooms and 1,200 apartments, whose guests and residents will be able to enjoy access to a shopping mall, conference centre, museum, and a heritage centre. The focal point of the project is a 40-storey, pearl-shaped building meant for tourism and entertainment.
Naturally, every aspect of this project is meant to be luxurious and cutting edge, pushing the boundaries of what is possible. This starts long before the first top-of-the-line appliances are installed in their luxe apartments; it starts with the tokenization of the development project’s land.
Asset tokenization is a process of creating digital tokens that represent physical assets. Each of these tokens is a unique piece of code that is impossible to replicate. Think of these tokens as deeds to a house – whoever owns a house’s deed owns the house. Whoever can prove that they own a token proves that they own its corresponding asset. However, unlike a paper deed, which can be lost, stolen or destroyed, these tokens are stored securely on the blockchain. That means they can never be lost or stolen, at least not without extreme difficulty. It also means that they can be transferred between token owners and buyers easily, without the need of a third party to complete transactions. Tokens also have more applications than something like a house deed because they are not limited to being tied to houses. Anything could be tokenized, from a painting to a diamond – or an investment in real estate.
DDX takes this concept and uses it to increase the liquidity of investment in real estate development. As they build on the land for this project, they will also be minting ‘land tokens’. These tokens will have a value that is tied to the value of the project; as the project’s value goes up, the value of these tokens rises in a way that is both connected to the value of the land and supply and demand principles. Essentially, the tokenization of real estate development turns investments in real estate into digital securities that are tradable on the blockchain.
This is the vision of DDX, who hopes that strengthening the liquidity of Dubai’s real estate sector will increase international investment in its property. The company aims to pave the way for a future of responsible real estate tokenization. This project plans to utilise tokenization across every phase of the project, from early land deals to sales of finalised residential and commercial properties. It is their first large scale tokenization project.
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Apr 23, 2024 -
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