🏠Tokenize: gaining exposure

Zona allow users to subscribe their capital and invest in RWAs tokenized by Zona. The first asset to be supported is the Zona Parkhub, a portfolio of curated parking spaces located in metropolitan areas of Hong Kong. Zona Parkhub is represented by the PARK token, which accrues a safe baseline yield of ~5% from rental income.

1. Zona Parkhub Oracles

A problem faced by esoteric/non-fungible RWAs such as especially tokenized real estate, is the lack of frequent price updates. Typically each price update required a surveyor to manually value each property every 12 months, which is incredibly unscalable, costly, and leads to poor UX by not allowing users to manage their positions properly.

To solve this, Zona will be introducing a new oracle system using a hybrid approach of manual valuation and index calculation for parking space value. We will conduct manual valuation for these parking spaces every 12 months and and update prices daily using our city-wide Parkhub index.

The Parkhub index tracks the median price per parking space for cars (excluding motorcycle and truck spaces) in Hong Kong. Manual valuations of our Zona parking spaces will be conducted every 12 months, with the valuation adjusted daily by the percentage change in the Parkhub index. This process will reset with each manual valuation.

The inclusion of price indexes for our PARK oracle significantly increases the frequency of price updates and makes the process much more cost-effective and scalable, and allows users to better manage their positions and risks.

For more information on Zona's real estate indexes, please see the Zona real estate indexes page.

2. Real estate suppliers

Zona Parkhub sources real estate from the following parties

• Individual property owners: Individuals can access the interest-free capital locked up in their property through tokenization and selling all or a portion of the tokenized real estate to buyers. This is a superior method of financing compared to a mortgage at a bank, as interest rates generally fluctuate at around 5-7%, representing significantly higher capital requirements for the mortgager.

• Real estate developers: Developers can access a global pool of capital and clients through the blockchain. Use cases include selling a portion of the property to pay back their high financing costs during the development stage.

• Commercial real estate owners: Banks are often reluctant to provide mortgages to commercial real estate due to lower liquidity, as commercial real estate is transacted in large economic units. Fractionalization mitigates these risks by offering the commercial property in smaller units to a global pool of capital.

3. Tax implications

Parkhub investors will still need to pay taxes to the local jurisdiction. Zona will take taxes and other expenses into account before distributing the yield to users. The projected APR displayed on the Zona frontend is the net yield after taxes and other expenses.

4. Property management and operational costs

The Zona Team will manage the property for low-maintenance assets such as car parking spots. For larger scale assets such as housing, management will be outsourced to a professional third-party manager to ensure conditions are met.

All costs are deducted from the rental yield before being streamed to users onchain. The final net yield will also be reflected in Zona’s public website so that buyers understand the true yield that they will be accruing.