Introduction

What is Gypsy?

Gypsy is a decentralized REIT protocol based on the RENT and OWN token. Each OWN token is backed by a basket of crypto assets (e.g. ETH, DAI, MIM) and by Tokenized Real-Estate assets in the Gypsy treasury, giving it an intrinsic value that it cannot fall below.

What is a REIT?

REITs, or real estate investment trusts, were created by Congress in 1960 to give all individuals the opportunity to benefit from investing in income-producing real estate. REITs allow anyone to own or finance properties the same way they invest in other industries, through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment, without actually having to go out and buy or finance property. Mortgage REITs may finance both residential and commercial properties. Mortgage REITs get most of their revenue from interest earned on their investments in mortgages or mortgage backed securities. REITs are required to distribute at least 90 percent of taxable income annually to shareholders as taxable dividends. In other words, a REIT cannot retain its earnings. Like a mutual fund, a REIT receives a dividends-paid deduction so no tax is paid at the entity level if 100 percent of income is distributed. REIT shareholders pay taxes on dividends at ordinary rates versus the lower qualified rate.

What is the point of Gypsy?

The ultimate goal for Gypsy is to enable the option of travel for all. The way we do this is by developing a crypto based RIET which pays in ownership for every time a renter makes a rent payment. This enables a renter to gain equity in real-estate while they enjoy the freedom of renting different homes. This is possible due to blockchain, cryptocurrencies, and defi as it makes it possible to create new economical protocols with trustless transactions. Gypsy achieves this mission faster by also enables investors to purchase tokens with other crypto-assets which gives Gypsy more money to increase the pools of homes owned by Gypsy. In combining these ideas, the result is a protocol which is economically beneficial to renters, investors, and the DAO while also enabling people to travel the world.