Detalhes da Discussão
Fractar - Latin America RWA Franchise Model
thiago.ouros
Descrição
Fractar aims to tackle real estate investment in Latin America by tokenizing physical assets, allowing fractional ownership, increased liquidity, and simplified access for investors via the Cardano blockchain. It introduces a unique franchise model that mitigates local regulatory and operational challenges while ensuring regulatory compliance through integrated KYC/AML processes. The platform incorporates smart contracts for real estate asset management, voting system and reward sharing, offers embedded DeFi services like collateralized loans, and strategically allocates a portion of its profits to the Cardano treasury, promoting ecosystem sustainability. Fractar’s approach ensures localized market penetration, reduced operational costs, broader investor participation and fostering economic inclusion.
Declaração do Problema
Traditional real estate financing is hindered by bureaucratic hurdles, high costs, and limited access—especially for smaller investors. Moreover, the market suffers from illiquidity, and regional regulatory challenges complicate both local and foreign investor participation. With local market players missing an initiative to sell Cardano on the ground, and competitors like Polygon advancing in the EVM space, there is a clear need for a Cardano-based solution tailored to Latin America.
Benefício da Proposta
Implementation would democratize and significantly expand access to real estate investment across Latin America by enabling fractional ownership, increasing liquidity, and reducing regulatory hurdles. The Cardano community benefits from enhanced ecosystem visibility, increased total value locked (TVL) through integrated DeFi mechanisms, and sustainable use of the treasury with pay back of funds on the long term. Overall, this fosters ecosystem growth, attracts both crypto-native and traditional investors, and reinforces Cardano’s competitive positioning in the fast-growing tokenized Real World Assets (RWA) market.
Principais Entregas da Proposta
Roadmap & Project Timeline
M1: Legal Research & Structural Design of Operations (4 Months) Objectives: Conduct comprehensive legal and regulatory research for LATAM jurisdictions. Design the operational structure and blueprint for franchise operations. Establish initial frameworks for compliance, KYC/AML, and asset protection. Conduct comprehensive legal research and propose a solution that integrates Decentralized Autonomous Organizations (DAOs), Smart Contracts, and Trust models to facilitate interaction with traditional legal systems while ensuring asset protection and compliance. Validate the franchise initial model.
Deliverables: Detailed legal and regulatory framework. Structural design of operations including fluxograms and setup cost analysis. M2: Benchmark & Design Partner Requirements Gathering (3 Months) Objectives: Identify and benchmark best practices among regional and international real estate tokenization platforms. Gather detailed requirements from potential design partners and strategic stakeholders. Validate franchise model parameters through stakeholder consultations. Gather requirements from security perspective and practical technological operation with franchise partners for back-end and blockchain development.
Deliverables: Partner requirements report. A model incorporating benchmarked data and partner feedback. Security requirement report. M3: UI/UX & Front-End Development (3 Months) Objectives: Develop the user interface and user experience design for the platform. Create wireframes, prototypes, and design assets that resonate with both traditional and crypto investors. Ensure responsive design and usability across multiple devices, testing integration of framework front-end and tools.
Deliverables: High-fidelity UI/UX designs. Working prototype of front-end development. M4: Back-End Development & Integration (3 Months) Objectives: Build the core back-end functionalities including tokenization engines, KYC/AML processing, and data management. Integrate the front-end with secure, scalable back-end systems. Implement essential APIs and middleware for robust platform performance.
Deliverables: Fully functional back-end system. Integrated front-end and back-end platform ready for initial testing. M5: Smart Contracts & Web3 Integrations (3 Months) Objectives: Develop and test smart contracts on the Cardano blockchain for property tokenization, transactions, and DeFi modules. Integrate web3 functionalities to ensure seamless interactions between the blockchain and the platform. Implement security audits and compliance checks for smart contracts.
Deliverables: Tested and audited smart contract templates. Fully integrated Web3 modules with support for collateralized loans and dividend mechanisms. M6: Operational Launch & Market Validation (2 Months) Objectives: Launch the platform in selected LATAM markets. Marketing activities, business development, and partner training initiatives. Collect feedback and validate operational models for scalability.
Deliverables: Official operational launch of the platform. Market validation and performance reports. Established the certified franchise partners.
Detalhamento de Custos
M1 4 months $324,000.00 ₳578571
M2 3 months $140,000.00 ₳250000
M3 3 months $140,000.00 ₳250000
M4 3 months $91,000.00 ₳162500
M5 3 months $86,000.00 ₳153571
M6 2 months $54,000.00 ₳96428 ADA
Total $835,000.00 ₳1491071 ADA
Recursos & Duração
We estimate a total project duration of 18 months, divided into 6 distinct milestones (M1-M6). It requires a core team consisting of at least five members: a Product Owner, Blockchain Developer, FullStack Developer, UI/UX Designer, and additional roles covering business development, research, and significant allocations for legal and consulting.
Experiência
The Fractar team brings proven expertise from their successful work on the TapDano project, a blockchain initiative focused on identity management, real-world asset (RWA) tokenization, and secure on-chain validations using smart contracts and soul-bound tokens. Our experience includes navigating complex landscapes and integrating innovative solutions like secure NFC tokens, bolstered by key projects with major entities such as Cardano Foundation and Petrobras, Rock in Rio, Bradesco, and Banco Original. This multidisciplinary background equips us to address the intricate legal, technological, and operational challenges of this project.
Manutenção & Suporte
After its initial development, Fractar will ensure long-term sustainability and continuous support through its franchise-based model. The platform will generate revenue by fees collected from sales and franchise partnerships. We intend to allocate a designated budget for business development efforts, aimed at expanding operations and attracting a broader client base.
Endosso Suplementar
While we lack specific data or formal reports on this topic, insights gathered from social media comments and personal business interactions with potential partners in the region paint a clear picture. The community has responded positively to efforts aimed at increasing Real World Assets (RWA) within the ecosystem. This enthusiasm reflects a growing interest in integrating more tangible, real-world value into the sector. At the same time, there is a recognized need to improve Total Value Locked (TVL) to strengthen and sustain these initiatives. By boosting TVL, the sector could unlock greater potential and support the momentum behind RWA adoption, as observed through these direct and informal channels.
Alinhamento com o Roadmap
Sua proposta se alinha com algum dos Comitês da Intersect?
Marketing Committee
Esta proposta está alinhada com o Roadmap do Produto e os Objetivos do Roadmap?
Programmable Assets
Administração e Auditoria
Você gostaria que a Intersect fosse seu Administrador designado, incluindo atuar como auditor, conforme a Constituição Cardano?
Sim
Informações de Propriedade
Enviado em Nome de
CompanyPerfis Sociais
@tsnnstPrincipais Dependências
One key dependency of this proposal to be completed is the availability of a design partner, that in our case we already have a business development relationship.
Comentários (12)
It may be a good initiative, but proposals that focus on specific regions or specific products require careful socialization with the Cardano community for the sake of fairness. Otherwise, it may lead to unfairness with other products or regions, or to a loss of balance with competing products. I think it is necessary to promote more careful socialization with the Cardano community and obtain widespread support.
Comments by Sri Lanka hub budget workshop 20th April 2025 : Fractar - Latin America RWA Franchise Model
- What stands out?
The idea of allocating profits to the Cardano treasury is a appreciated by the group. The group had concerns about several aspects of the proposed project. The proposal requests 1,491,071 ADA ($835,000), but the cost breakdown lacks detailed justification, particularly for high cost milestones like legal research and UI/UX development, and backend development.
- What’s a tradeoff to consider?
A key tradeoff is the balance between the project’s ambitious scope and its execution risk. By aiming to tackle complex challenges like real estate tokenization, regulatory compliance, and franchise operations across Latin America, the project could potentially position Cardano as a leader in the RWA space. However, the broad scope, combined with a significant funding request and an 18-month timeline, introduces substantial risks. Without clearer evidence of technical expertise, community backing, or a detailed implementation plan, the project may struggle to deliver, potentially diverting resources from more focused, community validated initiatives. It was suggested by the attendees to try a more phased approach with smaller initial funding where the project could mitigate risk to the Treasury while allowing the team to prove their capabilities first and act as a kind of an MVP.
- What’s one question you’d want to ask the proposer?
The would like to request the proposers to provide specific details on how the revenue-sharing mechanism with the Cardano treasury will be implemented, including the technical structure, the enforcement process, and contingency plans if the platform does not achieve profitability?
- Highlight areas that are missing or require clarification
The proposal lacks details on the technical stack used for development. Clarifying this will help us understand the kind of team required for the development of the proposed systems.
The claim of community support is based on informal channels like social media and business discussions. Providing evidence of engagement would help us understand the current community support for this project.
1/2
Budget Proposal Workshop Participant Feedback - Hosted by Japan Hub
Feedback Summary: ・Real estate RWA needs longer timelines due to regulatory complexity. ・Proposal may overlap with existing projects like Empower.
Suggested Improvement: ・Better suited for Catalyst with milestone-based funding and compliance validation.
We respectfully submit this feedback for your consideration.
"Thank you 🙏🙏
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I think this proposal has not been socialized enough yet. I haven't seen any X or anything like that disseminating this proposal and the community actively providing feedback. Also, I'm the only one commenting on Govtool. What are your plans for how to do this going forward?
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Can you get endorsements for this proposal from some prominent community members who are knowledgeable about the RWA business?
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Personally, I think it would be better to raise funds for the range of M1-M2 first, and then raise funds for M3 and beyond. Depending on the results of the M1-M2 work, the amount of work and content of M3 and beyond may be completely different from what is currently expected. In some cases, we may conclude that it is impossible to carry out. There are many such examples in Catalyst and other businesses. It is difficult for DRep to evaluate the appropriateness of the work content of M3 and beyond without knowing the results of M1-M2."
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In Latin America, real estate and financial regulations vary significantly between countries. Isn’t it overly ambitious to address these comprehensively within a short period?
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Projects like RealT and Proptee initially gained attention but later struggled due to legal complexity, KYC/AML burdens, and investor protection concerns. How will Fractar overcome these well-known challenges?
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While franchising works well in food and retail, real estate involves high-value, regulated assets that are difficult to standardize. Is the model sufficiently robust to mitigate operational and legal risks across franchisees?
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While DeFi features like collateralized loans are technically compelling, aren’t they too complex for the average investor in Latin America? UX complexity has caused user drop-off in past DeFi efforts
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Basically, will this funding be sufficient to be independent from treasury funds?
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Although the means to ensure liquidity for tokens have been theoretically presented, it is unclear who will actually purchase and trade them (the liquidity providers of the investor base). Could you provide more detail on the specific target user profiles for both investors in fractional real estate tokens and liquidity providers in your system? What market research or partner insights support the expected demand and supply for these roles in Latin America?"
- Will it integrate or collaborate with existing Cardano projects, enhancing synergy?
- How does the project justify the size of the budget with expected outcomes (e.g., user adoption, ADA usage)?
- Does it stand out compared to other approaches in cost-benefit terms?
- Are post-launch updates, user support, or infrastructure upkeep accounted for?
- Could you please tell us the performance KPIs and their target values for this project?
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