Abstraction Layer
The Abstraction Layer is the bridging mechanism of the NeoMason architecture. Its objectives are:
To abstract individual property yields into a unified, note-like asset ($REY).
To solve the liquidity constraints inherent in heterogeneous, non-standard real estate.
To provide investors with standardized, liquid, and easily understood financial products.
At this stage, property sub-tokens ($A_20_n) are abstracted into $REY, an income-bearing note collateralized by the future rental cash flows of multiple properties.
Why the Abstraction Layer is Necessary
Real estate is fundamentally a heterogeneous asset class:
Each property is unique in location, size, usage, condition, and lease profile.
This non-standardized nature makes real estate a non-standard asset (NSA).
Key constraints of NSAs in finance:
Liquidity Trap
No unified trading market; pricing is asset-specific and transaction cycles are long.
Capital Inefficiency
Cash flows remain isolated at the property level; assets cannot serve as standardized collateral.
Concentration Risk
Investors holding a single property token face concentrated exposure with no diversification effect.
Limited Refinancing Capacity
Banks and institutions often do not accept non-standard assets as collateral, restricting financing options.
Summary: Non-standard assets = Low liquidity + Low capital efficiency + Concentrated risk + Weak refinancing capacity.
Even after tokenization, an $A_20_propertyID token remains a digitized non-standard asset. The abstraction layer solves this by:
From heterogeneous to homogeneous — Transforming diverse property tokens into standardized financial notes.
From isolated to aggregated — Pooling rental cash flows to form scalable liquidity.
From asset to capital — Converting ownership claims into standardized collateral for broader financial use.
Thus, tokenization makes property “on-chain,” while abstraction makes it “financial.”
Operating Mechanism
The abstraction process has three stages:
Safeguard First
All $A_20 tokens must be under custody and audit.
Users holding $A_20 tokens receive direct rental distributions without dilution.
Abstract Value → Mint $REY
Abstraction uses DCF-based pricing:
CF_t = Net rental cash flow at period t
r = Discount rate
PV = Present value, basis for $REY minting
Example:
Before abstraction: $A_20 → direct rental distribution.
After abstraction: $A_20 → deposit into protocol → mint $REY → rental distributions via $REY contract.
User income remains equal and uninterrupted.
Aggregate Liquidity
Multiple $A_20 tokens are aggregated into $REY:
$REY becomes an Asset-as-Fund instrument, representing pooled property yields.
From $A_20 to $REY: Protocol Logic
Deposit — User deposits $A_20 tokens into $REY contract.
Locking — Tokens locked; ownership transferred to protocol, continuing to represent rental rights.
Minting — Protocol mints $REY based on DCF present value.
Redemption — User redeems $REY to retrieve original $A_20 tokens.
This ensures traceability and equivalence between $REY and underlying property rights.
Yield Distribution Mechanism
Rental flows are redirected through the $REY protocol:
Rent inflow — Tenants pay into custody contracts.
Protocol receipts — $REY contract receives income via held $A_20 tokens.
Processing — Fees deducted; net proceeds pooled.
Distribution — Pro rata rental yields allocated to $REY holders.
Value:
Rental distributions remain equivalent pre- and post-abstraction.
Unified, transparent distribution improves auditability.
Fee structures are transparent and financial-product compliant.
Role & Functions of $REY
Unified Certificate — Standardized representation of aggregated property yields.
Yield Channel — Consolidated rental flows distributed via $REY.
Liquidity Entry Point — Freely tradable in secondary markets.
Capital Tool — Usable for collateralized lending, liquidity pools, and structured products.
Value to Stakeholders
Investors
Gain a stable-yield, tradable financial note.
Lower exit friction via secondary markets.
Institutional-grade compliance and portfolio effect.
Property Owners / Developers
Convert property yields into standardized notes, enhancing refinancing and liquidity.
Reduce dependency on single-asset risk exposure.
Strategic Significance of the Abstraction Layer
Through $REY, NeoMason achieves the leap from “tokenized assets” to “capitalized assets.”
Standardization — Diverse property tokens unified into a single instrument.
Liquidity Scaling — Market depth akin to funds or bonds.
Capital Efficiency — Enables collateralization and derivative markets.
Institutional Gateway — Provides real estate with an entry point into global capital markets.
Executive Takeaway
The Abstraction Layer transforms fragmented property tokens into $REY: a standardized, yield-bearing, and liquid note. It solves real estate’s inherent heterogeneity by pooling assets into an institutional-grade instrument, bridging tokenization with true financialization.
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