YakDAO offers opportunities for average retail investors to gain crypto and real estate exposure via recreational glamping properties. So, how does it work, and is this the start of a broader real estate tokenization movement? Read on to find out in this comprehensive YakDAO guide.
What is YakDAO?
Yak is an eco-friendly, recreational camping site. Campers enjoy luxury camping, also known as glamping. With a location currently in Brevard, North Carolina, Yak has plans to expand to other sites as its platform grows.
Notably, Yak’s camping sites are sustainable. The aim is to positively contribute to the surroundings while minimizing environmental impact as much as possible. As a result, Yak offers a unique and comfortable outdoor experience for those who want to enjoy nature without sacrificing modern amenities and a luxury touch.
YakDAO is a fractionalized investment platform built around Yak services. It is a recreational property decentralized autonomous organization (DAO). Anyone can invest in YakDAO to earn profits from Yak.
Team and investors
David Woodbury founded YakDAO and is the current CEO. Woodbury has over 10 years of experience as a C-level executive, creating startups, raising millions in venture funding, and, crucially, building outdoor recreation and property management software.
This innovative platform also has a list of notable sponsors and integrations, many of which are recognizable within the crypto and traditional finance (TradFi) spaces. Some of these include:
- Airbnb
- Booking.com
- Camp Native (founded and later sold by Woodbury)
- Coinbase
- Dtravel
- DuckDAO
- Ferrum Network
How does YakDAO work?
The nexus of the YakDAO platform is the democratized ownership of the recreational properties offered by Yak. This model allows the average retail investor to gain exposure to a traditionally gate-kept process.
The entire investment process begins with the Treasury. YakDAO gathers contributions from community members who receive Yak DAO (YAKS) in return. The DAO purchases unique outdoor recreational properties using the funds collected from the community treasury. YakDAO then develops and maintains these properties for commercial and community use.
The total supply of YAKS is 100,000,000. It is a governance token on the Arbitrum blockchain, which allows customers to take advantage of relatively low fees and fast transaction confirmation times.
Features
There are three primary ways that the YAKS token maintains its value to support the YakDAO ecosystem:
- Deflation: Each YAKS transaction carries a 1% fee, with 20% burned and 80% added to liquidity staking pools. This deflationary mechanism maintains scarcity throughout time, which increases the value of YAKS.
- Staking rewards: Holders can stake YAKS tokens to earn more YAKS, which promotes engagement and encourages long-term holding. This approach promotes token retention while reducing circulating supply and simultaneously boosting value.
- Exclusive benefits: Holding YAKS grants access to special privileges like revenue sharing, discounts, incentives, and governance privileges within the DAO ecosystem. This utility increases token demand and usage, resulting in value appreciation.
30% of the revenue generated by the properties goes into YAKS buybacks to fund staking pools. A percentage will also be used to buy back and burn YAKS, further enhancing the token’s value.
Where we see finance/funds being the barrier to tokenizing all aspects of real world assets, what YakDAO was able to do with real world tangible assets, was to buy a property for a DAO, monetize with short term rentals and create token buybacks tied to DAO revenue. We believe this model is scalable and has many potential use cases.
YakDAO
Stakers will not only earn more YAKS but can also earn NFTs, win free nights at the glamping property, and attend YAK Fest. Furthermore, invitations to the Governance Committee will be extended to top-tier token holders.
How to buy Yak DAO (YAKS)
1. Obtain a web3 wallet: Before purchasing YAKS, you must first obtain a web3 wallet. Download a wallet and follow the instructions to secure it. Login and switch over to the Arbitrum blockchain to begin purchasing YAKS. We’ve used MetaMask in this example.
2. Go to Uniswap: Uniswap is the official decentralized exchange (DEX) earmarked for purchasing YAKS. Any other DEX offering YAKS may be a scam, so it is best only to use official platforms designated by the YaksDAO team.
3. Select the YAKS token: Make sure you are on the Arbitrum blockchain and have some crypto (e.g., ETH) to swap for YAKS. Search for the official Yak DAO token address in the Uniswap search bar.
4. Buy Yak DAO (YAKS): Select the amount of YAKS that you would like to purchase. Press confirm. You have officially purchased YAKS and can stake, trade, or participate in YakDAO governance.
Advantages of YakDAO
The benefits of YakDAO are clear. It uses real-world assets (RWA) to give back to its community while simultaneously using its community to bootstrap the ecosystem, similar to a feedback loop. This helps to create a sustainable and self-sufficient decentralized organization.
The project offers a clear roadmap for investors and has thus far (as of May 2024) delivered on its promises. With many big-name investors on board, YakDAO presents a credible offering that aims to return a profit to investors but also build community. Included in the project plans are in-person events, including annual YAK Fest meet-ups, bringing together the Governance Committee and top YAK stakers.
Disadvantages of YakDAO
YakDAO offers a clear opportunity. Its journey from concept to tangible achievements in less than a year since launch demonstrates the strength of the project’s trajectory. However, investors should be aware that crypto investments are high-risk. Tokenization comes with its own barriers, particularly regulatory uncertainty and an education gap.
While the YakDAO project is widening accessibility for investors who may not otherwise consider or be able to invest in property, it must be highlighted that profits are not guaranteed with any investment.
Finally, as of May 2024, the YAKS token can only be traded on decentralized exchanges (DEXs). While DEXs offer the benefit of anonymity, they are less secure platforms than their centralized counterparts. Moreover, they often offer lower liquidity than CEXs and a steeper learning curve for new users. This may counteract YakDAO’s mission to widen investment accessibility, at least in the short term.
Is tokenization the future of real estate?
Real estate tokenization is set to revolutionize how we invest in and manage real estate assets, making them more accessible and efficient. The $YAK token offers investors a chance to invest in tangible, real-world assets while benefiting from the power of decentralized finance. The project represents one exciting tenet of an overall trend toward the democratization of such investments.
Tokenization offers the sector increased liquidity and transparency, thus making it more accessible to the average person. In all, it’s clear that YAKDAO is at the forefront of an industry poised for massive growth. Remember to always DYOR, and never invest more than you can afford.
Frequently asked questions
YakDAO is a decentralized autonomous organization that governs the Yak platform. Yak is an eco-friendly recreational property that allows customers to enjoy the outdoors without giving up amenities. The DAO governs Yak and allows retail investors to benefit from the profits made from Yak.
YakDAO collects money from the community to purchase and develop properties for glamping. Investors receive the YAKS token in return. Then YakDAO engages in market operations to further enhance the value of the YAKS token to incentivize holders to hold.
YakDAO allows the average investor to gain exposure to investment activities traditionally reserved for accredited investors. Customers can have fractionalized exposure to investment properties without actively maintaining the properties. Furthermore, YAKS holders may have the possibility to earn NFTs, participate in governance, or utilize the glamping facilities.
Yes, there are some risks associated with real estate tokenization. Due to the fact that cryptocurrency and blockchain technology are still niche sectors, there are some regulatory risks that may not be immediately apparent. The real estate market is also volatile and illiquid, therefore, allowing access to retail customers who may not understand expose them to some risks.
To invest in YakDAO, you will need a cryptocurrency wallet and some cryptocurrency to purchase YAKS. The Yak DAO token is on Uniswap on the Arbitrum blockchain, so you will need Arbitrum ETH to buy some. You should only use the official YakDAO website to learn how to purchase YAKS.
Yak has plans to purchase and develop more property in the future. There are also plans for a multichain staking pool and a Mogul Rewards Engine. Lastly, there are plans to launch YakLAND shares by 2025.
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