In The Optimist’s Twitter Spaces which took place on February 16, 2024, Charlie hosted Andrew Zapo from Propy to discuss the intersection of real estate and crypto, transparency, Propy Keys, roadmap, and more! Read our notes below to learn more.
Background
Charlie (Host) – Co-Leader at The Optimist
Andrew Zapo (Guest) – CEO of Propy
Propy – RWA leader in real estate
Revolutionizing Real Estate: Propy’s Blockchain Innovation
- Andrew shares his journey in the crypto space since 2017, his roles in various companies, his friendship with Propy‘s founder Natalia, and his current role as CEO of Propy Keys, highlighting the project’s operations.
- Charlie expresses appreciation for crypto-native individuals like Andrew who bridge the gap between traditional and crypto worlds, highlighting the challenges faced by traditional finance projects entering the crypto space without prior knowledge.
- Andrew gives an overview of Propy, founded in 2016 shortly after Ethereum‘s launch, aiming to transform the real estate industry by utilizing decentralized technology to increase efficiency, reduce fraud risk, and improve transparency and accessibility in real estate transactions.
- Charlie asks about the problems Propy can solve in the real estate market and the benefits it offers through blockchain and possibly AI integrations
- Andrew says that the first major problem is the lack of transparency in the real estate market, which Propy addresses by making every step of the process clear, including fees.
- This transparency leads to reduced transaction costs, as Propy can lower fees by up to 10%. He mentions that transaction speeds are improved, aiming for real estate purchases to take only a day or two in the future, as opposed to the current weeks-long process.
- Andrew highlights the limited access to the global market as a challenge, noting that Propy makes investing in U.S. real estate more accessible to international investors. He points out the fragmentation and outdated nature of property data, which Propy consolidates into a single, streamlined experience.
- Andrew discusses title fraud protection, a significant issue in the U.S., which Propy addresses by keeping deeds on the blockchain. He mentions his confidence that real estate transactions will inevitably move to the blockchain, highlighting the question is not if it will happen, but when.
Blockchain Real Estate: No Crypto Knowledge Required
- Charlie asks if people, including real estate agents and buyers unfamiliar with blockchain and crypto technology, need to have a crypto wallet or own crypto assets to use the platform.
- Andrew explains that users do not need to be crypto-savvy or own a crypto wallet to use the platform. He mentions that the user experience is traditional and easy to use for the end user, with most of the blockchain technology operating in the background.
- Andrew highlights that while the platform allows for the ownership of property to be tokenized and represented on the blockchain, users don’t need to interact with these features directly. He says that the platform is exploring various use cases and always approaches developments in a client-focused manner.
- Charlie finds it reassuring that users can benefit from the advantages of blockchain, such as speed and transparency, without needing to familiarize themselves with crypto tools.
- Andrew describes Propy Keys as an application that allows users to mint any address in the world as a gamification feature.
- He explains the tier levels of interaction with real estate addresses, from simply minting any address for fun (Tier 1) to actually owning a place and having a deed on the blockchain (Tier 2), and finally, to a level where the NFT contains all data necessary for the sale and purchase of real estate (Tier 3).
- Andrew highlights that Propy Keys is currently in closed beta and is part of a broader vision to engage users with real estate on the blockchain in a fun and innovative way.
- Charlie asks why someone would want to store their property data on-chain and what they could do with a property NFT.
- Andrew says that any tier allows staking and rewards from Propy, with the development of a staking product for NFTs launching soon. He highlights the protection benefits of tier 2, where minting with a deed is crucial, especially in the US to prevent fraud. For tier 3, merging property with an NFT opens more use cases, such as obtaining loans on real estate, with more details to be disclosed.
- Charlie asks about the possibility of using a property NFT to set up peer-to-peer mortgage systems.
- Andrew confirms this potential use but notes the involvement of traditional institutions in real estate transactions. He mentions that tier 3 details are still in process, with tiers 1 and 2 currently functional.
- Andrew explains tier 1’s focus on gamification and the upcoming public launch with staking. He highlights the ease of staking and the introduction of gamification for tier 1 users, aiming for a more DeFi and native crypto experience.
Propy’s Strategic Launch and Blockchain Integration in Real Estate
- Charlie mentions a full launch date of March 12th, 2024, showing interest in the project’s timeline.
- Andrew confirms the launch is on Base, highlighting their choice due to a strong relationship with Coinbase and a desire to tap into its trustworthy ecosystem and user market, especially in the US.
- Charlie expresses his appreciation for Base’s lower fees and smooth experience, assuming Coinbase Wallet is supported among others.
- Andrew mentions they support MetaMask and Coinbase Wallet, addressing wallet integration.
- Charlie asks about the risks associated with putting a deed on-chain, particularly in the context of tier t2 and potential smart contract risks.
- Andrew sees no significant risks with storing deeds on-chain, highlighting privacy and security measures in place, comparing the safety to traditional DeFi protocols.
- Charlie discusses the requirement of the $PRO token for minting addresses and asks about governance aspects within the Propy protocol.
- Andrew explains that the $PRO token is used for transaction fees on the Propy platform and is necessary for minting NFTs across different tiers. He explains the governance system, where $PRO token holders have voting rights on upgrades and protocol changes, confirming the system is live on their website.
- Charlie asks about the future of the blockchain real estate industry and Propy’s goals for the upcoming years.
- Andrew says that Propy’s immediate plan includes launching properties for staking with three tiers open for minting on March 12th, 2024. They are also introducing gamification mechanics around property keys and testing an AI feature for minting world-famous landmarks, which will generate a unique AI picture for each property.
- A partnership announcement is expected soon. The focus for the year is on property key staking and gamifying real estate address ownership to make it more crypto-native.
- Propy aims to mint a hundred thousand addresses on the base network this year, building on their current base of 1500 addresses in closed beta.
- The long-term goal involves integrating features like microloans for real estate and enhancing platform adoption, with the main strategy being to bring real estate on-chain using the technologies developed in the crypto industry.
- Andrew encourages everyone to follow Propy Keys on Twitter and welcomes feedback, especially on gamification aspects, to improve the platform.
Check out these important links
- Listen to the original Twitter spaces
- Follow Charlie on Twitter
- Follow Andrew Zapo on Twitter
- Follow Propy on Twitter
- Follow The Optimist on Twitter
Show Information
- Medium: Twitter (Audio)
- Show: The Optimist Twitter Space
- Show Title: Cross-chain Lending with Pike Finance
- Show Date: February 16, 2024