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What is Rent Token?
Rent Token is the first ever cryptocurrency token that will offer a full rental ecosystem for both tenants and landlords, and provide both a buyback and burn program for token holders so that our token will always be a deflationary style token. Our full ecosystem is a revolutionary on-blockchain solution to the rental industry providing an arsenal of useful services for both tenants and landlords. We will be effectively working to eliminate the rental management industry by providing blockchain solutions at a much lower price and all with one click, turnkey solutions effectively undercutting a $77 billion industry.What rental management companies charge for rental management can be as much as $100 per flat per month, while we can offer all of the things they offer on blockchain for 80% less of the cost with our revolutionary instant ticket and support systems all provided in-app.
— Matthew McAlister,
The ICO will begin on September 2, 2017 and end October 23, 2017. The price per Rent token is $0.10. The goal of the crowdsale is $1,000,000 and there is a hard cap of $15,000,000. If the hard cap is reached, the crowdsale will end immediately.
Token Distribution information
500,000,000 Rent tokens will be created and there will be 150,000,000 available during the crowdsale. Rent tokens are ERC-20 tokens and only Ether can be contributed during the crowdsale.
Use of Crowdsale Proceeds
10% will be used for market outreach.
10% will be locked in a five-year contract.
0.4% will be locked in a one-year contract.
0.2% will be locked in a six-month contract.
34.4% will be locked in a 10-year contract.
1% will be set aside for hiring incentives.
10% will be used in initial property acquisition by the Rent Token team.
4% will be held for bounties.
Matthew McAlister, Division Asset Management Coordinator and Lead Programmer
Matthew has been developing web and gaming servers for seven years, has SEO experience, and assisted in developing a multitude of gaming communities.
Aaron Hoffman, Finance and Business Planning Advisor
Aaron is CEO of Zinoff Enterprises, a logistics and supply chain company that is a part of the Ethereum Enterprise Alliance. Aaron has been involved with Ethereum and blockchain for two years.
John Zinno, Head Real Estate Advisor
John is the president of DeliverThat, a catering and food delivery company based out of Ohio. John has a bachelor’s degree in real estate and entrepreneurship principles. He has worked within the Ethereum ecosystem before and was instrumental in getting Zinoff Enterprises included in the Ethereum Enterprise Alliance.
Ethan Sam, Public Relations Coordinator
Ethan is completing his degree in communications and public relations, and is new to the cryptocurrency space.
ICO Alert: What does the token do on the Rent Token platform and why is it necessary? What advantage does using this token have over the current process?
Matthew McAlister, Division Asset Management Coordinator and Lead Programmer: That is a great question and I am glad you asked it. Rent Token will be required in nearly all things on our app from the instant messaging to the deposit smart contract ensuring Rent Token will be needed every step of the way for blockchain communication and services. But what makes us completely different from anyone else is that currently, there is no easy process for rental management. Anyone in the rental industry will tell you that property management is both time consuming and resource intensive. With our app and ecosystem, it doesn’t have to be. We bring everything you need as a landlord all to one platform that allows you to effectively have a turnkey operation; from listing, to issue management, to getting your property ready for the next tenant with in-app contractors for services like painting and re-keying of apartments and properties. With our current design being like nothing out there, we have filed a utility patent with the U.S. patent office, which is currently pending.
ICO Alert: How does Rent Token plan to market to its first users? Is there an established user base already?
Rent Token: Rent Token will first market to college students, as they are one of the largest populations of renters in the United States and most likely to be familiar with blockchain technology. Approaching college students gives us two distinct advantages over other approaches. The first advantage we gain is our properties owned by Rent Token will offer both a 10% discount on deposits when using Rent Token and a 2% monthly discount on payments made with Rent Token, giving us the ability to undercut anyone else in the industry. The second main reason we choose to begin marketing to college students is that we can develop brand loyalty at an early age, while also entering areas that have new tenants every semester. Our first area where we will begin deploying our ecosystem and properties is Fayetteville, Arkansas. We choose to focus our efforts on Fayetteville because our partner in this endeavor, Division Asset Management DivASM LLC, currently has rental properties in that area. Fayetteville has both rental vacancy rates that are lower than the national average (4.11% vs, 5.85%) and are falling 1.36% faster than the national average, while rental property costs have increased by over 8.39% over the last 3 years. Also, Fayetteville is home to the University of Arkansas which has a near 40% out of state student rate, meaning huge numbers of people seek rentals every year.
ICO Alert: One of the main use cases for Rent Token is holding the tenant’s security deposit in a smart contract to ensure fairness when the lease ends. How does this smart contract function to judge whether or not the tenant has broken the lease agreements and thus relinquished the security deposit?
Rent Token: Our smart contract is set up on the basis of what is called a multi-sig contract, meaning the contract has multiple signatories on the contract for landlords, tenants and a trusted third party. This trusted third party could be a bank and escrow service, or the Rent Token team will offer a third party arbitration service for a small fee. In the app, both tenants and landlords can submit pre-notes, images, and notes to confirm the state of the property initially to ensure easy settlement or arbitration at the end of the lease. The smart contract design also has a built-in deposit liquidation feature for landlords if a tenant is more than 60 days delinquent in their payment.
ICO Alert: The SEC has recently given some further guidance on cryptocurrency. Is Rent Token affected and is the ICO offered to U.S. customers?
Rent Token: We at the Rent Token team have gone over the recent guidance provided by the SEC off their study of the DAO and do not believe that Rent Token’s ICO is affected, as we are not offering the characteristics of a security fund. Rent Token will be proud to offer our ICO sale to U.S. customers, as it is where we will be based and operating.
ICO Alert: How far along in development is the Rent Token application and what services will it offer to users?
Rent Token: Rent Token is currently in pre-alpha stages on our application with a currently functioning UI, but our app has not yet been tied into blockchain and our timed smart contract as of yet. Our app will offer a wide array of features that no other ICO or rental management company has offered. Our app will offer:
— Instant in-app exchanges
— Rental listing for landlords that accept Rent Token, giving them an edge over the competition
— In-app and on blockchain instant messaging and a support ticket system
— Timed smart contracts to secure deposits for tenants during the duration of their lease
The app also offers pre and post walk notes for landlord and tenants to make in-app for easy deposit arbitration
These will be offered at a much lower cost and much more effectively than current rental management services that charge outrageous prices for their services. Rent Token can offer our proprietary software at 80% less than comparable services.
ICO Alert: Why is the Rent Token team participating in buyback programs for the Rent Token?
Rent Token: There is one main reason to provide both the buyback program and our locking of over 40% of the token supply into five and 10 year contracts, and that reason is stability of the value of Rent Token. For our deposit systems to be most effective, we would like to offer a sort of trading baseline of a minimum of $0.10 per token for deposits, trades, and payments to work best. Our offering of a long-term increased buyback program allows for long-term stability of the coin and to show our token holders and app users that our team is committed to providing the best services for the long-term.
ICO Alert: As a non-Rent Token question, we like to ask ICO teams what their expectations are for the cryptocurrency industry in the near future. Where do you see the industry in five years?
Rent Token: I personally think most people can agree, in the cryptocurrency space, it would seem like five years could be an eternity, just look at Bitcoin in 2011 compared to now. I personally believe that the cryptocurrency market could easily top $1 trillion by 2022, but I believe that over that time cryptocurrency has a lot a maturing to do for mass adoption and I even believe that many of the common household names that are cryptocurrencies in the top 10 could easily no long be there in five years. Overall, I think the future for cryptocurrency is bright, but there is a long road ahead.
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(1) Rent Token Website, Rent Token, (2017)