# How does it work from a technical and legal standpoint?

* [Technical model](#technical-model)
* [Legal model](#legal-model)

### Technical model

Sabai Property is built on blockchain technologies, including tokenization. Essentially, tokenization is the process of tying specific rights to a physical asset, such as receiving profits from real estate, to a particular token or group of tokens.

<figure><img src="/files/oKTn7AaytfeKOy4R5w7t" alt=""><figcaption></figcaption></figure>

The total value of the real estate is determined through an independent appraisal. Subsequently, the total value of the property is divided into a certain number of shares, each initially valued at 50 USD. Then, RWA tokens are issued in the same amount as the shares. Thus, 1 token equals 1 share of the property, priced at 50 USD.

It's worth noting that as the property appreciates, no new tokens are issued, preventing dilution of shares for existing investors. Consequently, the property's value growth directly correlates with the increase in token prices.

Technically, Sabai Property tokens are indistinguishable from cryptocurrencies, except for their tethering to a real asset.

Similar to cryptocurrencies, Sabai Property tokens exist on the blockchain — a decentralized data storage method. Unlike traditional systems, the blockchain relies on numerous user devices and lacks a central server.

This aspect ensures the blockchain's exceptionally high security level. By leveraging blockchain technology, Sabai Property maintains a reliable and transparent record of users' rights and token ownership.

### Legal model

Legally, Sabai Property operates as an investment fund comprising multiple companies. The fund acquires assets and allocates the resulting income (from rentals and value appreciation) to investors in the form of dividends

<figure><img src="/files/xGyaBbt7lc8FLmLXph0t" alt=""><figcaption><p>Legal Framework</p></figcaption></figure>

<figure><img src="/files/uMyS8SEkhAjbVYkAYa6B" alt=""><figcaption><p>Step 1 and Step 2</p></figcaption></figure>

<figure><img src="/files/cxaxzRFyt0OTQ1aGBw9C" alt=""><figcaption><p>Step 3 and Step 4</p></figcaption></figure>


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