Owners use their tokens to vote on all decisions for the properties they own. The amount of voting power an owner has depends on the number of tokens they own for a property.
For example, if John own 10% of the tokens in 1234 Main St, John has 10% of the voting power.
Each owner can only own up to 15% of the total tokens in a property to ensure a fair governance system.
After owners purchase their first token, they are required to take a mandatory governance survey to determine their management preferences.
These management preferences include:
How to determine rent amounts
How much time to give a tenant before filing eviction
Preferences on making repairs
Owners have the ability to defer to the Property Manager's recommendation for most votes.
For all votes that have been automated via the initial mandatory governance survey, owners receive a property update like the one below:
Issues that aren't covered by this automated process will be put up for voting by owners of the property in question.
The winning decision is decided by a 60% Supermajority vote. The winning vote is then sent to the Property Manager who carries out the decision.
Here is an example of a governance voting prompt:
After clicking the Vote Now button, owners will be prompted to cast their vote.
After the voting period is over, typically 3-5 days after the governance vote email is sent out, owners will receive another email with the governance voting results.
Once the results are sent out, the Property Manager is informed of the owners' decision, which they then carry out.
All owners have the ability to propose their own governance votes to be voted on by other owners.
If you wish to propose a governance vote, please reach out to [email protected] with your governance proposal, and our team will send it to all property owners promptly.
Once a governance vote is decided, there is a 90-day period until the same governance vote can be proposed again. The exception is if there are material changes with the property within the 90-day period, E.g., Required repair costs exceed Operating Reserve balance or tenant eviction.
We are continuously improving our governance protocol. Token holders are the owners of these properties, not Lofty––which is why token holders have full control and voting rights on all properties.
In 2023, we will launch Governance 2.0 which will allow token holders to vote on-chain, as well as propose new governance votes within their Lofty dashboard.
The only exception is that owners cannot vote on things that are illegal. For example, in many states, it's illegal to not fix problems in a property that's causing it to be unlivable when a tenant is leasing it. If a pipe broke and the house was flooded, the PM by law has to fix the problem at the earliest possible time. The membership cannot vote to save funds and not fix a problem like this.