Master Plan Smart Contracts

A Master Plan is a smart contract that embodies the operating rules and regulations of a Community.

Zoning

Each community must define a set of zones (eg. Residential, Commercial, Utility etc) to which regulations (Rights and Covenants) can be applied. Land Parcels within the boundaries of the community can be designated as belonging to a particular zone. By default, they will then inherit the default regulations of the zone.

Zoning regulations can be applied to both residential Land Parcels as well as Land Parcels for use by equipment and public services.

The dApp allows for the creation of a list of zones on which the community can agree. Once created, each zone may be assigned regulations (see below).

Regulations

No-code smart contracts can be set up for the definition of specific regulations that can be applied to a zone or a real estate asset. Regulations can take the following forms:

• Rights - A measurable and quantifiable right to permit or prohibit some action in relation to a Real Estate asset.

• Covenants - Written conditions tied to the ownership or use of land that stipulate a promise by a Real Estate asset owner to perform or to refrain from some action. While covenants are recorded on the blockchain to bind asset owners, they are not themselves administered by a smart contract, except in the case of an enforcement action as a result of a covenant violation. Covenants are not tradeable and may only be altered as a result of governance actions by the Planning Committee.

Tax Regime

The planning committee can establish a rate of taxation on each type of non-fungible economic asset. The rate can be a fixed amount or a percentage. This taxation can be applied periodically or based on events such as ownership changes, minting or burning. Tax collected at these rates from asset owners are a source of revenue for the treasury.

Enforcement Rules

Options exist for each community to determine smart contract methods for the enforcement of breaches of covenants or non payment of obligations. The most severe of these actions is to revoke ownership of the asset through liquidation (equivalent to a foreclosure action by a bank).

Enforcement actions are governed by a mixture of smart contracts, voting by governance token holders and dispute resolution via the Dispute Resolution dApp.