# DAO Operating Protocols

## Rule 1: Property purchases

The purchase price of a property must be less than or equal to 50x the lease income. In other words, the maximum price LANDAO will pay for a property is 50 times the annual lease income.

## Rule 2: Income distribution

Lease income is distributed 80/20, with 80% going to the Native Token holder treasury and 20% going to the DAO governance treasury.

## Rule 3: Property sales 

For a property to be sold, its sale price must be 50% above our **purchase price (PP)** during Years 1–5 and 60% above PP in Year 6 and onward.

## Rule 4: Sale proceeds distribution

Like lease income, the proceeds from property sales are distributed 80/20, with 80% going to the Native Token treasury and 20% going to the DAO governance treasury.

## Rule 5: DAO governance & property improvement funding

When purchasing a property, the DAO formula for the percent of additional funds to be used for the purchase (% over PP) is defined as follows:

| Purchase price (in millions) | Governance & improvement funds | % over PP |
| ---------------------------- | ------------------------------ | --------- |
| 1–19.99                      | $200,000–$4M                   | 20        |
| 20–29.99                     | $3.8M–$5.7M                    | 19        |
| 30–39.99                     | $5.4M–$7.2M                    | 18        |
| ...                          | ...                            | ...       |
| 100–199                      | $10M–$19.9M                    | 10        |
| 200–299                      | $18M–$26.9M                    | 9         |
| ...                          | ...                            | ...       |
| >=1B                         | $10M                           | 1         |

As you can see from the table above, the % over PP decreases as PP increases. If we purchase a piece of property valued at less than $20M, we will raise an additional 20% above the purchase price to fund DAO governance and property improvements. For every $10M increase in purchase price, the % over PP drops 1% until we reach $100M properties. From $100M-$1B properties the % over PP drops 1% every $100M. For any property valued at >=$1B the DAO will only fund 1% over PP.

{% hint style="info" %}
The formula for distributing the "% over PP" is 80/20, with 80% going to the DAO governance and 20% going to Native Token treasury specifically for property enhancements/improvements.
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://info.landao.org/landao-llc/dao-operating-protocols.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.