Understanding EQT Token Economics
EQT is the equity credit that turns 10% of your rent into ownership. Here's exactly how it works — accumulation, vesting, redemption, and governance.
Disclaimer: EQT credits represent equity interests in community-owned housing. Real estate investments are illiquid and carry significant risk. This content is for informational purposes and does not constitute investment advice.
What Is EQT?
EQT — short for Equity Token — is the unit of ownership that Built By DAO uses to represent a renter's accumulated equity in their building. When you pay rent in a Built By DAO property, 10% of your payment is converted into EQT credits tied to the specific property where you live.
EQT is not a cryptocurrency in the speculative sense. It is not traded on exchanges. It does not fluctuate based on market hype. It is a blockchain-verified record of your ownership stake in a real, physical property — backed by concrete, steel, and rental income.
Think of EQT as a digital deed to a fraction of your building, one that grows a little larger every month.
How EQT Accumulates
The accumulation mechanics are straightforward:
Monthly Credit
Every month when your rent payment clears, exactly 10% is credited to your EQT balance. The calculation is simple:
- Monthly rent: $1,500
- EQT credit: $150 (10%)
- Annual accumulation: $1,800
- 5-year accumulation: $9,000
There are no hidden fees deducted from your EQT credit. The 10% is the 10%.
Real-Time Balance
Your EQT balance is visible in your member portal at all times. Every credit is timestamped and linked to the specific rent payment that generated it. Because the ledger is maintained on-chain, you can independently verify your balance without relying on anyone's word.
Property-Specific
EQT credits are tied to the property where you live. If Built By DAO operates multiple buildings, your equity accumulates in the one you reside in. This means your ownership stake is connected to a specific asset with a specific value — not a vague share of a sprawling portfolio.
The Vesting Schedule
Not all equity is available immediately. EQT follows a clear vesting schedule designed to reward long-term residency:
- Months 1-12: EQT credits accumulate but are unvested. If you leave before completing 12 months, unvested credits are returned to the community pool.
- Month 12: 100% of accumulated EQT becomes fully vested. From this point forward, every new credit vests immediately upon accrual.
The 12-month cliff serves two purposes. First, it encourages stable tenancy — residents who commit to at least a year build genuine roots in the community. Second, it protects the equity pool from being diluted by extremely short-term occupants.
After the first year, there are no further cliffs or delays. You earn it, you own it.
What Your EQT Is Worth
The value of your EQT credits is derived from the underlying property value. Here is how that works:
Property Valuation
Each Built By DAO property undergoes an annual independent appraisal. The appraisal establishes the current fair market value of the building, which serves as the basis for EQT valuation.
EQT Price Per Unit
The total number of EQT units in circulation for a property is divided into the property's appraised value. This gives a per-unit price that reflects real asset backing.
Example:
- Property appraised at $5,000,000
- Total EQT units in circulation: 500,000
- EQT price per unit: $10.00
If the property appreciates to $5,500,000 at the next appraisal, the per-unit price rises to $11.00. Your accumulated EQT is now worth 10% more — not because of speculation, but because the building itself increased in value.
Appreciation Sharing
When property values rise (as they tend to in well-maintained, occupied buildings in growing markets), EQT holders benefit. Your 10% monthly credit buys equity at the current valuation, and that equity grows alongside the property.
Conversely, if a property's value declines (due to market conditions, for example), EQT valuations adjust accordingly. Real estate is not a guaranteed investment, and EQT reflects that honestly.
Redemption: Turning EQT Into Value
Vested EQT can be redeemed in several ways:
Upon Move-Out
When you leave a Built By DAO property, your vested EQT balance is calculated based on the most recent property valuation. You receive the cash value of your credits, typically processed within 90 days of your departure.
Down Payment Assistance
EQT credits can be applied toward a down payment on a home purchase — whether within the Built By DAO network or with an external lender. This is the most direct path from renting to ownership: your accumulated equity becomes the capital you need to buy.
Transfer Within the Network
If you move from one Built By DAO property to another, your vested EQT can be transferred to the new property at the current valuation. You do not lose equity by moving within the network.
Holding
You can also choose to hold your EQT credits indefinitely, continuing to benefit from property appreciation even after you stop actively renting.
Governance Rights
EQT is not just a financial instrument. It also grants governance participation in your building's DAO:
- Voting power: Your vote is weighted by your EQT balance. More equity means more influence over community decisions.
- Proposal rights: Any EQT holder can submit proposals for community vote — from maintenance priorities to development plans.
- Transparency: All votes and outcomes are recorded on-chain, creating a permanent, auditable record of community governance.
Your EQT makes you a stakeholder in the fullest sense: financially invested and democratically empowered.
Why Blockchain?
A fair question: why use blockchain for any of this? Could the same system work with a traditional database?
Technically, yes. But blockchain provides three properties that are difficult to replicate otherwise:
- Immutability. Once your EQT credit is recorded, it cannot be altered or deleted by anyone — not even Built By DAO. Your equity record is permanent.
- Transparency. Every transaction, vote, and valuation is publicly auditable. You do not need to trust Built By DAO's accounting. You can verify it yourself.
- Portability. Your EQT exists independently of Built By DAO's systems. Even if the organization changes structure, your equity record persists on-chain.
We use blockchain because it makes the system trustworthy by design, not by promise.
The Big Picture
EQT represents a new relationship between renters and their housing. Instead of paying rent that builds someone else's wealth, every payment builds yours. The mechanics are transparent, the vesting is straightforward, and the value is backed by real property.
It will not make you rich overnight. A $150 monthly credit is modest. But compounded over years, combined with property appreciation, and paired with governance rights, it creates something renters have never had: a genuine ownership stake in the place they call home.
Start Earning Equity From Your Rent
Built By DAO converts 10% of every rent payment into EQT equity credits. Real ownership, transparent tracking, democratic governance.
Join the waitlist to reserve your spot, or learn how the full model works.
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