1. Calculate Potential Revenue
Market Capture and Transaction Fees:
- Total Market Volume: $3 trillion
- Market Share Goal: 50% of $3 trillion = $1.5 trillion
- Transaction Fee: 0.5%
Revenue from Transaction Fees:
- Annual Revenue: $1.5 trillion × 0.5% = $7.5 billion annually
2. Revenue Split
Fee Distribution:
- Node Owners: 1/3 of total fees
- Administration Company (RSL): 1/3 of total fees
- Association (AOREP): 1/3 of total fees
Annual Revenue Distribution:
- Node Owners: $7.5 billion × 1/3 = $2.5 billion
- Administration Company: $7.5 billion × 1/3 = $2.5 billion
- Association: $7.5 billion × 1/3 = $2.5 billion
3. Revenue Per Node
Node Revenue:
- Number of Nodes: 50
- Total Revenue to Node Owners: $2.5 billion
- Revenue Per Node: $2.5 billion / 50 nodes = $50 million per node annually
4. Node Pricing Strategy
Initial Node Pricing: Given the potential for $50 million in annual revenue per node, the price should reflect the high value and returns. Here’s a pricing range:
Price Range:
- Lower End: $10 million per node (considering early-stage investment risk and attractiveness)
- Higher End: $25 million per node (reflecting the significant revenue potential and exclusivity)
5. Structure Fees and Profit Sharing
Initial Node Purchase Price:
- Premium Node Price: $10 million to $25 million, depending on timing of purchase early versus later in the startup timetable and all other factors.
Recurring Fees:
- Maintenance and Operational Fees: Administration company pays all setup and maintenance costs.
Profit Sharing:
- Distribution: The blockchain network automatically distributes with complete transparency all transaction fees divided among node owners, administration, and the association as the events occur.
By setting the node prices between $10 million and $25 million, we align the cost with the substantial revenue potential from a 50% market capture and a 0.5% transaction fee. This pricing reflects the high value and profitability of each node while ensuring that the revenue model supports long-term sustainability and growth.
6. Summary
Node ownership within the Real Smart Ledger (RSL) network presents a lucrative opportunity for stakeholders in the real estate industry.
Early node ownership requires an initial purchase negotiation, with half of this fee allocated to the association to fund its operational activities, such as legal matters, lobbying efforts, committee management, expositions, and staff salaries. The remaining half goes towards technology rollout and maintenance that includes software licensing and installation of hardware in data centers.
Furthermore, node owners play a pivotal role in the governance of the network as they comprise the board of directors. They have direct access to the network, enabling them to query listings and initiate transactions seamlessly. Additionally, node owners have the opportunity to provide services to third parties in accordance with the standards set by the association's board of directors comprised of mainly node owners, MLS must remain a free service to the public and users must be enabled to opt in to the smart contract system.
In summary, node ownership offers not only significant financial rewards but also grants influential control within the real estate industry. However, it's important to recognize that acquiring node ownership entails a substantial investment and a significant decision-making process. Existing board members hold the authority to approve new node owners and set network pricing and operations withing the association charter, ensuring that those admitted align with the association's goals and standards and understand and agree to the standards laid out by the charter.