> For the complete documentation index, see [llms.txt](https://info.landao.org/landao-llc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://info.landao.org/landao-llc/dao-operating-protocols.md).

# 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 %}