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 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.

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.