You might have heard historical business stories where entrepreneurs stumbling upon ideas and become successful companies. One does not need to have an intuition or be a genius to find ways to differentiate one’s company. It’s something that can be developed and nurtured. One good example is a candle manufacturer, Blyth Industries. It differentiated and re-differentiated its products and grew from USD 2 million candle producer to USD 500 million with a market value of USD 1.2 billion. It is in an industry that has been in decline for 300 years. That is how strategic differentiation manifests. LandOrc platform has some key features that are different from others to make it a sustainable project that investors should choose.
First of all, the entire lending process in LandOrc through LorcFinancing is backed by collateral, making it unique in the DeFi space. A real estate developer needs funding for his project. He has got land to use as collateral can approach LorcFinancing, collateralize the land for a relatively lower borrowing rate and start working on their projects. LorcFinancing offers an opportunity to raise liquidity through the crypto ecosystem and lend it to the developers by holding their collateral. Here, the developers will be lent around 50% of their collateral value.
Secondly, NFT creation of land title is used for the process of collateral. For LandOrc, their purpose is not to take up this severe challenge of converting all country’s land documents and converting them into NFTs. They will be converting the collaterals of developers who will seek funding through LorcFinancing into LandNFT. Through LandNFT, the transaction is recorded in the blockchain. We trust the blockchain because it is a distributed ledger. Its entries are not easily changed, and there are billions of dollars riding on that immutability.
LandOrc merely holds the right to claim the ownership of the said NFT itself and the right to exclude others from claiming ownership of the NFT. In addition to that, they would have other legally binding agreements with the developers who seek funding, off-chain, through appointed SPVs [Special Purpose Vehicles] (local bodies or legal organizations of the respective countries) by LandOrc.
Having said about NFTs, the following key feature are the oracles that allow bringing data from off-chain to on-chain. An oracle sends data from the outside world (also vice versa), like visuals of the land and valuation, to the Ethereum blockchain. The data then can be used by a smart contract on the blockchain, typically deciding whether to dispense money and to whom. If not, for investors to check the authenticity of the collateral.
Next is the LandOrc’s governance tokens LGOV. Governance tokens are cryptocurrencies that represent voting power on a blockchain project. Recently, they are mostly integrated into DeFi projects since they need to distribute powers and rights to users to remain decentralized. LGOVs are based on ERC20 standard and are distributed across all relevant players in the LandOrc ecosystem — real estate owners and/or property developers, lawyers, valuers, Digital Asset owners and technology partners.
LGOVs are designed to allow community members to vote on crucial decisions for the platform. For example, the property development projects that are suitable to be brought on to the LandOrc platform for LorcFinancing and percentage of transaction fee to be charged on the platform etc.
Clearance for LorcFinancing and project staking will be given for respective real estate assets and/or property development projects. That is, once the minimum threshold vote of 30% out of all issued LGOV (up to an estimated total of 1 billion units) has been achieved. The voting process is such that the independent professional bloc like legal counsels, valuers, auditors will consist of 20% voting rights. Last 10% consisting of votes coming from public Digital Asset owners.
However, the entire voting process will also hang in the absence of this Independent professional bloc. That is to ensure that each project staking and LorcFinancing is carefully reviewed and voted on by independent professionals and digital asset owners. Investors can access details of voting results on the LandOrc platform.
Finally, LandOrc operations are global. Hence, it provides access to different projects with different returns for investors from the comfort of their homes. LandOrc has access to high-interest markets in Asia, Africa, Latin America and Eastern Europe. They have existing projects with collateral. That will ensure the crypto investors in LandOrc get their returns at a faster pace. Hence, it will provide reassurance and drive others to participate. The key takeaway here is, LandOrc has successfully started to show its global presence.
Bringing DeFi based lending will reduce their cost of capital and give crypto investors good returns backed by collateral. Hence, LandOrc believes the projects are a win-win for all. That shows its strength to compete with its competitors through its differentiation strategy. It is unique and sustainable from other DeFi projects. “LandOrc — A gem for long-term investors”.
Sources:
https://academy.shrimpy.io/post/what-are-governance-tokens
https://hbr.org/1997/07/discovering-new-points-of-differentiation
