In our marketplace**, the process of a buyout typically refers to the purchase of the entire asset or the majority of the tokenized shares of an asset. This could happen in various ways, depending on the specific mechanics. Below is a detailed explanation of how a token buyout could work:

1. Tokenized RWA Structure

In our tokenized marketplace, our assets are digitally represented by tokens on a blockchain. These tokens represent fractional ownership of the underlying asset. Each tokenized asset is divided into smaller fractions, and individuals can purchase tokens to gain exposure to the asset.

2. ** Token Buyout Overview**

A token buyout typically means purchasing all (or a significant portion) of the tokens that represent the asset, which may allow the buyer to:

• Take full control of the asset.
• Liquidate or sell the underlying asset.
• Benefit from any future appreciation or income (such as rent, dividends, or royalties) generated by the asset.

This could be done either by a single buyer purchasing all the tokens representing the asset or by a collective decision to sell the asset (via a buyout proposal, auction, or similar process).

3. How an RWA Token Buyout Works

Step 1: Token Ownership

• Initially, the asset is divided into fractions, each represented by a token. For example, a building may be tokenized into 1,000 tokens, where each token represents 0.1% ownership of the property.
• Token holders collectively own the asset in proportion to the number of tokens they hold.

Step 2: Initiating the Buyout

• Private Buyout: A potential buyer (or investor) may approach the market or token holders with an offer to purchase all tokens associated with the asset at a premium (above the current market value of the asset or token price). The buyer will usually make a proposal or an offer to acquire the asset, which could be:
  • A fixed price offer for all tokens.
  • A premium buyout price (e.g., offering a 10% or 20% premium to the current market price of tokens).
• Public Buyout / Auction: In some cases, the buyout could be done via an auction process or a decentralized governance mechanism where token holders vote on whether to sell the asset or accept a buyout offer. This can also be structured as an initial buyout auction where the highest bid for the entire asset wins.

Step 3: Execution of the Buyout

• Transaction Execution: Once the buyout is approved, the buyer will typically pay in the marketplace's accepted form of payment (usually cryptocurrency, stablecoins, or fiat-backed stable assets). The funds will be distributed to token holders based on the number of tokens they hold.
• Transfer of Ownership: Once the buyout offer is executed, the physical or legal ownership of the asset may be transferred to the buyer. This would be represented by a transfer of the tokens back to the marketplace or a smart contract, ensuring that the buyer becomes the sole owner.