ModaFi — Tokenized Home-Purchase Contracts

𝕄

Your holdings

Your Portfolio no contracts yet

Every home you’ve locked in — contracts, leases, and your $MODAFI wallet, all in one place.

Underlying home value

$0

total spot value of locked-in homes

Home Contract Price · total

$0

if you exercised everything today

Contract value (𝕄 = $1)

0

live BSM · = $0 USD

Net P&L

𝕄0

= $0 USD vs. cost basis

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Build your contract

Price a Contract

Pick a home, set your terms, and watch your 3-month concession cover the option price.

Available homes

148

across 1 community · Conservancy at Gilberts

Property portfolio 340 homes 0 owned · 340 available

1000 Bristol Ct

Gilberts, IL 60136 · Conservancy Back 40

Appreciation locked in · annualized · compounds over T → strike = S × (1 + appr)^T

0.0%/yr

Home Contract Price (locked-in at exercise)

$390,000

981 Brielle Blvd
spot $368,900

Option price · 1 𝕄 = $1 USD 9,240 = $9,240 USD

Show the finance details

Value if you bought today𝕄 0

Paid for future upside𝕄 9,240

Chance you’ll want to buy—%

Home value to break even$399,240

Break-even vs today+8.22%

Baseline: a 1-year contract at 0% locked appreciation costs exactly 3 months of rent. From there the price moves the same way a stock option's does: extending the expiration raises it — about 3 months’ rent per year of term at the 0% baseline (5 years ≈ 15 months’ rent) — and locking in more appreciation lowers it (further out of the money). A 3-month rent concession is applied at purchase — it covers the baseline contract in full, leaves surplus cash on cheaper (shorter or higher-lock) contracts, and offsets part of the price on longer ones. The appreciation lock is an annualized rate that compounds — e.g. 5%/yr over 5 yrs locks the strike at S × (1.05)⁵ ≈ +27.6%.

How this works · option price decomposition · scenarios · payoff

Where your option price goes · intrinsic + time value

0

100%

Intrinsic value · 𝕄0 — what the option is worth if exercised today (max(spot − strike, 0))

Time value · 𝕄0 — extra paid for the chance prices move in your favor before expiry

Outcome scenarios · simulated home-price paths

Median (4.5%/yr)

$0

Net P&L if you exercise

Bull (8%/yr)

$0

You exercise; pocket the difference

Bear (-2%/yr)

$0

You walk; option expires worthless

Payoff at maturity · classic call-option hockey stick

Below Home Contract Price → walk away (lose option price). Above Home Contract Price → buy at locked price; upside is yours.

Time decay (θ) · option-price erosion to expiry

The curve shows your option's value if the home price stays flat at today's spot. The steepening tail near expiry is theta acceleration — value decays faster in the final months.

Your positions · marked live

Contract	Tokens	Avg cost	Mark	P&L

Secondary marketplaceInventory & listings ledger peer-to-peer option resaleall 148 properties · listed + held + inventory — listings

Active listings

0

across all metros

How it works: when a current option holder lists their contract, it appears here. ModaFi still publishes a live BSM mark for reference, but sellers set their own asking price. Buy at ask for instant settlement, or send an offer and the seller decides. The constraint stays — only one option per home, so buying transfers the contract atomically.

Filter:

Rent vs Own vs ModaFi three paths to a home — full cost comparison

Pick a property — homes

Time horizon: 10 years

Home appreciation (%/yr) · Chicago 5-yr ≈ 7%

Rent inflation (%/yr)

Maintenance (% home/yr)

Household income (annual)

Annual living expenses (non-housing)

Investment return (%/yr) · S&P long-run ≈ 7-10%

Path 1 · Rent for N years

Keep renting

No purchase. Pay rent each year (with inflation) for the full horizon. Maximum mobility, zero maintenance, zero equity at end.

$0

total cash spent over 10 years

Today's rent (yr 1)—

Final-year rent (after inflation)—

Total rent paid—

Equity at end$0

Path 2 · Wait 1 yr, buy at market

Wait then buy (no lock)

Rent for 1 year, then buy at whatever the market price is then. No option price upfront — but you're exposed to wherever prices end up after 1 year.

$0

net cost over 10 years (after equity)

Rent during 1Y wait—

Market price at year 1—

Down payment (on market)—

Closing costs (3% of market)—

Monthly payment (Y2+)—

Cumulative ownership pmts (N-1 yrs)—

Cumulative maintenance—

Home value at year N—

Mortgage balance remaining—

Equity at end—

Path 3 · Lock with ModaFi, buy in 1 yr

Lock the price now, buy in 1 year

3 months rent buys the option and is received back as a concession at purchase. Rent the home, then exercise at your locked Home Contract Price (the appreciation you lock compounds over the term). At closing you collect Downpayment Assistance. If the home appreciates past your locked price, you win — if not, roll the contract or walk away.

$0

net cost over 10 years (after equity)

Locked-price savings vs waiting

—

Option price (Y0, 3 mo rent)—

↳ Credit toward down payment (option price not lost)—

Rent during 1Y lock—

Exercise at Home Contract Price—

Full down payment (on strike)—

Cash needed at exercise (after credit)—

Closing costs (3% of strike)—

Cumulative ownership pmts (N-1 yrs)—

Cumulative maintenance—

Home value at year N—

Mortgage balance remaining—

Equity at end—

Cumulative net cost over time

Rent only Buy now ModaFi option

How to read this: the line that's lowest at any given year is the cheapest path at that point. Rent climbs steadily but never builds equity. Buy starts high (down payment) but the line eventually drops as appreciation + principal build equity. ModaFi starts cheaper than buy (smaller upfront), then converges with buy after exercise — but at a locked strike that may beat market price if appreciation runs hot.

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Plan ahead

Pathway Help

Turn your surplus concession into a higher credit score and real net worth on your way to owning.

The cash you receive at purchase — the excess concession — doesn't have to sit idle. Apply it to high-interest debt and your credit score, monthly cash flow, and qualification odds at exercise all improve. This page models that path with real numbers.

Inputs Excess synced from Buy a Contract

Excess concession pre-fills from your current selection. Enter your debts and tweak the allocation.

Cash to allocate

Excess concession (received at purchase)

$

Current credit position

Current FICO credit score

FICO

Credit card balance

$

Credit card APR

%

Total credit limit (all cards)

$

Other debt (optional)

Auto loan balance

$

Auto loan APR

%

Allocation strategy

How much of your excess goes to each bucket?

To credit cards

$

To auto loan

$

Kept as cash / savings

$

How we estimate impact

· Credit utilization (CC balance ÷ limit) drives ~30% of FICO. Lowering utilization is the fastest near-term score boost.

· Score-band model: paying utilization from 50%+ to <10% typically adds 40-70 points; from 30% to <10% adds 20-40 points.

· Mortgage rate improvement uses an industry-standard tier table (740+, 720, 700, 680, 660 break points).

· Interest saved projects the avoided interest at current APRs over 1Y and 5Y horizons.

Est. credit score after

—

Interest avoided · 1Y

—

vs no paydown

Interest avoided · 5Y

—

cumulative

Net worth lift over 5Y

—

debt reduction + interest savings

① Credit utilization · before vs after

Utilization above 30% is the biggest drag on most FICO scores. Below 10% is the sweet spot.

Before

—

After

—

<10% excellent 10-30% good 30%+ drag on score

② Credit score impact

Current score

—

→

Projected after paydown

—

③ Mortgage rate impact at exercise

Better FICO → better mortgage rate at closing. Even a small rate improvement saves serious money over a 30-year loan.

Without paydown

Rate—

Monthly P&I—

Total interest · 30Y—

With paydown

Rate—

Monthly P&I—

Total interest · 30Y—

—

④ Net worth trajectory (next 5 years)

Paying down high-APR debt is a guaranteed return at the interest rate avoided. Compound it over 5 years and the difference is real.

Today · debt reduced by—

Year 1 · cumulative interest avoided—

Year 5 · cumulative interest avoided—

Total net worth lift by Year 5—

⑤ Pathway summary

—

How It Works the whole journey, start to finish

Homeownership, reimagined

Lock in tomorrow’s home price today.

A ModaFi contract is a right to buy a specific home at a price you lock in now — not an obligation. You pay an option price equal to 3 months of rent, and in return you receive a 3-month rent concession, a locked future purchase price, and Downpayment Assistance if you go on to buy. Rent the home while you decide. When your contract expires you can buy at the locked price, roll the contract forward, or walk away — your most you can ever lose is the option price.

Your journey, step by step

Every number here is live on the Price a Contract tab. This is the shape of the deal.

1

Pick a home & your terms

Choose a home and set two things: how much annual appreciation you want to lock in (this sets your future purchase price) and how long the contract runs (1 month to 5 years). A higher lock means a higher future price but a cheaper option today.

2

Pay the option price

The option price is what you pay to hold the contract (about 3 months’ rent for a 1-year baseline; longer terms cost more, locking in appreciation costs less). Here’s the key: you also receive a rent concession equal to 3 months’ rent, credited to you as $MODAFI. Your option price is paid from that concession, and whatever is left over is yours to keep as $MODAFI.

Example: 3 months’ rent = $9,000, option price = $5,000 → you pay the $5,000 to Moda and are handed $4,000 in $MODAFI to use however you like. (On longer contracts the option can cost more than 3 months’ rent — then you cover the difference.)

3

Put your $MODAFI to work

The $MODAFI left over from your concession is real money in your hands today. Put it toward the home, pay down credit cards, or save it — take it to Pathway Help to see how paying down debt lifts your credit score and your path to qualifying for a mortgage.

4

Live there & decide

Rent the home through the option period (months 1–3 are covered by the concession, then normal rent). Watch the home’s value vs your locked price. You’re under no obligation — the contract is your option, not a commitment.

5

At expiration — three choices

Buy at your locked price and collect Downpayment Assistance toward closing — or, if you can’t qualify yet, roll the contract forward a year (Second Chance Offer) — or walk away, losing only the option price (the concession you already received is yours to keep).

Key terms — in plain English

The handful of words you’ll see throughout ModaFi, defined once.

Option contract — your right (not obligation) to buy a specific home at a price you lock in today, anytime before it expires.

Option price — what you pay to hold the contract. The 1-year, 0%-lock baseline is 3 months’ rent — roughly 3 months’ rent for each year of term — and locking in more appreciation lowers it.

Home Contract Price — the locked-in price you’ll pay if you buy. Set by the annual appreciation you choose, compounded over the term.

Rent concession — your first 3 months of rent, credited back to you as $MODAFI the moment you sign. Money you’d pay anyway — now yours to direct.

Surplus — when the option costs less than your concession, the leftover stays in your wallet as $MODAFI for your next contract.

Out of pocket — the part of the option price above your 3-month concession (appears on longer contracts). Your maximum loss is the option price you pay.

Downpayment Assistance — a credit toward your down payment at closing if you buy, sized from 10% to 100% of your post-concession rent based on the appreciation you locked. Paid only if you exercise.

Exercise — choosing to buy the home at your locked price when the contract matures.

Second Chance Offer — can’t qualify for a mortgage yet? Roll the contract forward a year at a new price instead of losing it — with a fresh concession.

$MODAFI — the payment token, 1 𝕄 = $1, reserve-backed. Your concession lands as $MODAFI and auto-applies to your option price.

Your first 3 months of rent — now it’s yours to direct

It isn’t a bonus. As a renter you’d pay these 3 months anyway and the money would be gone. ModaFi covers them as a concession, so that same rent money stays in your hands — you just choose where it goes.

How the option price is set

The baseline is a single anchor: a 1-year option at 0% locked appreciation costs exactly 3 months of rent for that home. From there the price moves the same way a stock option’s would, responding to both inputs you control. Extend the expiration and the price rises — roughly 3 months’ rent for each year of the contract at the 0% baseline (a 5-year contract is about 15 months’ rent). Lock in more appreciation and the price falls — your future purchase price moves further above today’s, pushing the option out of the money. A 3-month rent concession is applied at purchase: it covers the baseline in full, leaves surplus cash on cheaper contracts, and offsets part of the cost on longer ones.

How your locked price grows with time

The appreciation you lock in is an annualized rate that compounds over the life of the contract. Lock 5%/yr on a 1-year contract and your price is set 5% above today; lock 5%/yr on a 5-year contract and it compounds to about +27.6% over the full term. Longer contracts at the same annual rate give the home more room to grow into — and keep the option price low.

Downpayment Assistance — how the credit is sized

If you exercise (actually close on the home), ModaFi credits Downpayment Assistance toward your down payment at closing. It’s based on the rent you paid past the 3-month concession period (monthly rent × (12×years − 3) months), scaled by how much appreciation you locked in: 10% of that rent at a 0%/yr lock, rising to 100% at a 15%/yr lock. It is exercise-contingent — paid only if you buy. Sell, roll, or walk away and no assistance is paid (but you keep the concession you already received).

0%/yr lock

10%

5%/yr

40%

10%/yr

70%

15%/yr+

100%

See it for a real home — option price across locks & terms (optional)

Pick a property to see how the option price changes with the appreciation you lock in (across) and the contract length (down). Higher appreciation locks lower the price; longer terms raise it.

Now pricing: —

Read it two ways. Across a row (same term): the option gets cheaper as you lock in more appreciation, because your future price moves further above today’s. Down a column (same lock): the option price rises with the term — a longer horizon carries more time value. Across a row the price falls as you lock in more appreciation. The 1-year, 0%-lock contract is the 3-months-rent baseline.

What you risk — in plain English

If the home rises in value

You buy at your locked-in price and keep all the appreciation above it — plus your Downpayment Assistance. This is the win case.

If the home is flat or you can’t close

Roll the contract forward another year with a fresh concession, or walk away. You keep the concession you already received either way.

If the home falls in value

You simply walk away — you were never obligated to buy. Your maximum loss is the option price you paid, and you got 3 months’ rent covered for it.

Ready to see it on a real home?

Pick a home, set your terms, and watch the concession cover your option price.

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Operator

Moda Console

Issuance, pricing, and outstanding obligations across the portfolio.

Inventory live

148

across 1 development · Conservancy at Gilberts

Option price captured if all issued

1,261,500

sum of 3-mo rent per home

Total notional (1Y strike)

$63.4M

sum of strike12 across inventory

Avg σ across inventory

10.1%

calibrated single-home idiosyncratic vol

End-to-End Example · How a ModaFi Deal Works

Walking through one home, one contract, one exercise — from NFT issuance through the preferred equity layer. Numbers shown for 1000 Bristol Ct, a $400,000 home renting at $3,000/mo. All amounts in USD unless noted.

ONE DEAL FLOW

Capital Stack · the four layers on every home

① The Home · tokenized as an NFT

1000 Bristol Ct

Each property in Moda's portfolio is wrapped in an ERC-721 NFT that represents the legal title. The NFT lives on Ethereum, references the deed + recorded encumbrances, and is held by a per-property SPV inside Moda Homes' REIT structure. Whenever an option contract is written against the home, the NFT carries the encumbrance on-chain — no double-pledging.

Token ID
#MODA-1000BRC

Standard
ERC-721

Spot value
$400,000

Monthly rent
$3,000/mo

② Moda's capital stack · 70% LTV mortgage

Moda finances each home at 70% loan-to-value with a conventional BTR mortgage. This frees up $280K of bank capital per home, letting Moda recycle its own equity into the next acquisition. Moda's at-risk capital per home is only its 30% equity slice.

Mortgage · 70% LTV @ 6.5%$280,000

Moda equity · 30% LTV$120,000

Total home value$400,000

③ Option contract · written against the NFT

Moda writes a 1-year call option on the home and sells it to a prospective buyer. Strike compounds at the annualized lock rate (5%/yr × 1 yr = $420K Home Contract Price). The buyer pays the fee in $MODAFI tokens minted 1:1 against their USD payment.

Option fee · 3 mo rent𝕄 9,000 (= $9,000)

Home Contract Price (strike)$420,000

Concession to buyer · 3 mo free rent$9,000 value

DPA obligation at exercise$2,340

④ Exercise waterfall · what hits Moda's P&L

When the buyer exercises, sale proceeds flow through a defined waterfall. Everything above the 70% mortgage line is potential profit for Moda. Below is the math for this single home, assuming a baseline exercise scenario.

Sale price (= locked HCP)$420,000

less Mortgage payoff (70% LTV)−$280,000

less Downpayment Assistance credit−$2,340

less Closing / transfer costs (est)−$5,000

Gross to Moda$132,660

less original Moda equity recovered−$120,000

= Net realized profit$12,660

Plus the upfront 𝕄 9,000 option fee (already collected at issuance) that wasn't re-paid out as a credit — net cash collected on this home: $21,660.

⑤ The 70% LTV is the magic number

Every dollar a home sells for above the 70% mortgage line is Moda's recoverable equity + profit zone. Higher annualized locks push the strike further above spot, which means more headroom for profit — but also a lower probability of exercise (the buyer needs more appreciation to make exercising worth it).

HCP at 0%/yr (baseline)$400,000 → spread $120K

HCP at 5%/yr × 1Y$420,000 → spread $140K

HCP at 10%/yr × 1Y$440,000 → spread $160K

HCP at 5%/yr × 5Y (compounded)$510,513 → spread $230K

Annualizing the lock makes long-tenor contracts more profitable for Moda per closed deal, while keeping a fair price for the buyer (compounding at their own rate).

⑥ Preferred Equity · the Strategy-style capital layer

Raise capital perpetually without diluting Moda common

PROPOSED

Strategy (formerly MicroStrategy) has built a four-series perpetual preferred stack (STRF, STRC, STRK, STRD) on Nasdaq, using ATM issuance to keep buying Bitcoin without diluting common. Preferred holders have a general claim on Strategy's residual assets — BTC is collateral "in spirit, not in law" (Strategy's BTC holdings remain largely unencumbered). Dividends are funded from operating cash flow (the software business), a ~$2.25B reserve, and continuous preferred ATM issuance — not from selling BTC.

Moda's analog: issue perpetual preferred at the Moda Homes holding-company level, with a general claim on residual assets (the contract portfolio + underlying NFT homes). Dividends would be funded from three live cash-flow streams Strategy can't match: (a) option fees on every contract written, (b) exercise profits per closed deal, (c) BTR rental income while the option period is running.

Strategy's four preferred series · $100 par · Nasdaq-listed

Series	Rate	Seniority	Convertible?	Role
STRF (Strife)	10.00% fixed	Most senior	No	Safest credit-style instrument
STRC (Stretch)	~11.5% variable (monthly reset)	Middle	No	The workhorse · $3.4B+ · rate-adjusted to peg price near $100 par so ATM keeps flowing
STRK (Strike)	8.00% fixed	Middle	Yes — 0.1 common/pref	Lower yield + equity-upside kicker via conversion (implied $1,000 strike)
STRD (Stride)	10.00% fixed	Most junior	No	Sits just above MSTR common · highest residual risk

Strategy vs Moda · accurate side-by-side

Feature	Strategy (MSTR)	Moda Homes / ModaFi
Underlying asset	Bitcoin (BTC)	Home option contracts + NFT homes
Underlying character	Volatile, non-yielding	Hard real-estate · rent-yielding · less volatile
Collateral structure	General residual claim · BTC unencumbered	General residual claim on holdco · NFTs/contracts not directly pledged
Dividend cash sources	Software cash flow + $2.25B reserve + ATM issuance	3 streams: option fees + exercise profits + BTR rent
"Virtuous cycle" trigger	BTC appreciation → mNAV premium → more ATM → more BTC	Home appreciation → wider HCP-mortgage spread → more contract profit → more ATM capacity
Convertible series	STRK only · 0.1 MSTR common per pref	Moda Pref-K (proposed) · converts at IPO (2027 target)
"Coverage" framework	Saylor: 2% annual BTC gain sustains dividends indefinitely	Already covered at 1× by option fees + rent alone, before any exercise profit

Worked example · $50M Moda Preferred Series A raise

Preferred raised
$50,000,000

Dividend rate
8% / yr

Annual dividend obligation
$4,000,000

Coverage from 3 streams
~6.5× over

Stream A · Option fees: 1,000 active contracts × $9K = $9M/yr collected at issuance.
Stream B · Exercise profit: 30% exercise rate × $12,660 net per closed deal = $3.8M/yr.
Stream C · BTR rent during option periods: 1,000 homes × $3K/mo × 75% paid (post-3-mo concession) = $27M gross rent (Moda's net after mortgage debt service ≈ $13M/yr).
Total coverage: ~$25.8M/yr in distributable cash flow against a $4M obligation = ~6.5× coverage. Strategy doesn't have streams B or C — only the appreciation-driven ATM flywheel.

⑥ᵇ When home values appreciate · the Moda analog to BTC inflation

Each layer of the stack reacts differently — same shape as Strategy's BTC flywheel

FLYWHEEL

When Bitcoin rallies, Strategy's common stock typically moves with leverage (mNAV often 1.5–2.5×) while the preferred series stay roughly at par and just get safer. The Moda parallel: when home values appreciate, the option-contract portfolio gets more valuable, the equity-cushion above each mortgage widens, and Moda common captures the lion's share of upside — while preferred holders sit at par and collect their coupon.

Strategy · when BTC inflates

① BTC mark-to-market ↑ → balance-sheet equity ↑

② MSTR common ↑↑ with leverage (mNAV premium)

③ STRK (convertible) rallies — option to convert into now-richer common

④ STRF / STRC / STRD stay near par — just safer, more residual cushion

⑤ ATM issuance reopens at richer multiples → more preferred sold → more BTC bought

⑥ Cycle repeats while BTC trends up

Moda · when home values inflate

① Home spot ↑ → spread between HCP and 70% LTV mortgage widens

② Moda common equity ↑↑ — each home's exercise profit grows non-linearly

③ Moda Pref-K (convertible analog) gains value via Moda common convertibility at IPO

④ Moda Pref-A / Pref-C / Pref-D stay near par — bigger NFT-collateral cushion = safer

⑤ ATM issuance reopens at richer mNAV → more preferred sold → more homes acquired

⑥ Cycle repeats while housing trends up AND rent + option fees keep flowing regardless of direction

Key difference from Strategy: Strategy's flywheel requires BTC to keep appreciating — Saylor's framing that "2% annual gain sustains the dividend indefinitely" is a capacity argument, not a cash-flow one. If BTC stagnates for years, Strategy leans hard on the $2.25B reserve and software cash. Moda's flywheel works even in a flat housing market because option fees and rent continue regardless of price direction. Appreciation is upside; non-appreciation isn't an existential threat.

Home-price sensitivity · 1Y contract, 5%/yr lock, $400K spot

Realized market move	Spot at expiry	Exercise probability	Moda profit per closed deal	Moda total revenue
−5% (downturn)	$380,000	~5%	$0 (most walk away)	Option fees + rent kept · ~$9K + $27K = $36K/home
Flat (0%)	$400,000	~15%	$8K (small spread)	Fees + rent + small exercise · ~$37K/home
+5% (at lock)	$420,000	~50%	$12,660	Base case · ~$42K/home
+10%	$440,000	~80%	$12,660 (capped by HCP)	Most exercise · $45K/home
+15% (boom)	$460,000	~92%	$12,660 (Moda forgoes $40K upside that buyer captures)	Near-certain exercise · $47K/home

Note the structural asymmetry: in a downturn, Moda keeps the option fee and rent ($36K/home revenue, $0 exercise loss). In a boom, Moda is capped at the HCP ($12,660 profit per home) — the buyer captures the rest. This is the cost of writing the call: bounded upside, but cash-flow positive across all scenarios. It's the opposite of Strategy's BTC bet, which loses if BTC drops.

⑦ The whole stack · 4 layers, 4 capital sources

HOME NFT

ERC-721 wrap of the legal title. Per-property SPV inside REIT. Encumbrance recorded on-chain.

MORTGAGE (70% LTV)

Conventional BTR debt. $280K/home at 6.5%. Recycles bank capital, isolates Moda equity at 30%.

OPTION CONTRACT

Sold to buyer for 3 mo rent in $MODAFI. Compounded annualized strike. Concession + DPA baked in.

PREFERRED EQUITY

Raised at the holding-company level. Serviced by option fees + exercise profits. MSTR-style perpetual.

Net effect: Moda holds $120K of equity per home and a layer of optionality. The bank holds $280K of senior debt. The buyer holds a call option. The preferred holders hold an income-yielding claim on the contract portfolio's cash flow. Four parties, four returns, one home.

Inventory · all homes Moda can issue against

Each card shows the canonical 1-year contract terms for that home (3-mo rent premium, +5% strike) and current issuance status.

Filter:

Set Home Contract Price & publish

Click Edit pricing on any inventory card above. A prompt will let you set the Home Contract Price and publish it to the marketplace.

Outstanding-obligation maturity ladder

Bars = total notional of contracts maturing in each quarter. Use this to plan inventory and hedge exposure.

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Token

Token & Reserves

$MODAFI — 1:1 USD, fully reserve-backed.

Tokenomics

ModaFi Token ($MODAFI) — a utility credit token that turns rent into ownership

$MODAFI bridges customer payments under the RentSmart-to-Own™ program directly to progress toward homeownership. The model is intentionally conservative and transparent: every token in circulation is backed 1:1 by one U.S. dollar held in segregated reserves, tokens are minted only when a verified customer payment is received, and they are burned at closing when credited toward the purchase. Supply grows with real economic activity — not speculation.

Token specifications · shared across both paths

Token nameModaFi Token

SymbolMODAFI

Display glyph𝕄 (= $1 USD)

Decimals0 — whole tokens

Initial supply500,000,000

Total supplyDynamic · uncapped

Peg1 MODAFI = $1.00 USD

Backing1:1 segregated USD reserves

Mint authorityGnosis Safe multi-sig

ControlsMintable · Burnable · Pausable

Initial 500M minted to Moda Homes’ treasury multi-sig at deployment; further minting occurs only against verified customer payments. Treasury-held tokens are not in circulation — the 1:1 reserve test applies to circulating supply.

Deployment architecture · two paths under evaluation

Chain & standards are not yet committed — choice depends on the resolved legal classification (utility credit vs. security). Both are live design options.

classification under review

Path A — L2 compliance-native

Base or Arbitrum · security-token framing

ChainBase or Arbitrum (Ethereum L2)

StandardsERC-3525 option NFT + ERC-20 share + ERC-3643 (T-REX) whitelist

Legal frameSecurity token · Reg D 506(c) or Reg S

Transfer controlOn-chain KYC/accredited whitelist

Compliance enforced by the contract itself
Secondary market natively gated
Lower gas; native programmability for option NFTs
Smaller user base · bridge complexity · L2 liveness dependency

Path B — Mainnet utility token current working draft

Ethereum mainnet · utility-credit framing

ChainEthereum mainnet

StandardsPlain ERC-20 (OpenZeppelin 5.x)

Legal frameUtility credit token · Howey + MTL analysis open

Transfer controlPermissionless + OFAC blocklist + pause

Maximum reach and liquidity
Minimal new contract surface area; existing wallets and explorers
Lower legal complexity for credit-redemption use case
Compliance enforced off-chain (KYC/AML at issuance/redemption only)

These paths are not mutually exclusive — a mainnet utility token can coexist with a compliance-gated security token for accredited-investor secondary trading. The contract repository (modafi-contract/) currently implements Path B; a Path A variant adds ERC-3525 and ERC-3643 wrappers.

Proof of Reserves · live dashboard

Reserves ≥ circulating supply, at all times

Illustrative figures — drag the slider to simulate circulating supply against attested reserves.

reserve ratio 100.0%

Tokens minted

𝕄500,000,000

to treasury at deploy

Circulating supply

𝕄0

customer-funded, in market

Tokens burned

𝕄0

redeemed at closing

Attested USD reserves

$0

segregated accounts

Simulate circulating supply: 0 tokens reserves cover 100% of circulating

Vertical mark = 100% backing. Fill shows reserves as a share of circulating supply; minting pauses automatically if it would ever fall below 100%.

Supply rationale

The 500M initial supply was set against Moda Homes’ balance sheet — substantial headroom for near-term growth while staying responsible relative to current equity. We deliberately rejected a 1B initial supply: it would have created overhang disproportionate to the equity base and could undermine market confidence.

Beyond the treasury allocation, supply expands only 1:1 with real customer payments. As land in the 3,000+ lot pipeline is developed and option/closing activity grows, supply scales organically with balance-sheet expansion and customer-funded reserves.

Moda Homes balance sheet & portfolio

Total assets

$857M

Liabilities

$611M

Equity

$246M

Residential lots3,000+ (Chicagoland)

Bristol Bay of Yorkville240 units at build-out

Active communities: Conservancy at Gilberts · Bristol Bay of Yorkville · Clublands of Antioch · Deercrest of Antioch, plus developments in various stages. Figures are illustrative pending audited financials.

Utility & redemption

Reserves are funded exclusively by RentSmart-to-Own™ payments — primarily Option Fees plus qualifying rent concessions. No token is minted without a corresponding USD inflow.

1 · Pay

Option Fee received

Customer pays the Option Fee under the Option to Purchase Agreement.

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2 · Mint

$MODAFI credited 1:1

e.g. a $5,960 Option Fee mints 5,960 MODAFI; USD goes to segregated reserve.

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3 · Hold / trade

Credit accrues

Tokens represent $1 credit each toward the strike / purchase price; transferable on the Marketplace.

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4 · Burn

Redeemed at closing

On exercise, tokens are burned and credited to the purchase — reducing supply and reinforcing 1:1 backing.

Proof of Reserves — hybrid model

We combine on-chain transparency with independent off-chain attestation — the best-practice approach for fiat-backed real-world-asset tokens.

Mechanism	What it is	Trade-off	Fit for $MODAFI
On-chain only	Smart-contract + oracle proof of reserves	Real-time, but hard for fiat USD; oracle risk	Low
Third-party attestation	CPA reviews bank statements, signs report	High credibility; periodic, not real-time	High
Merkle tree + snapshots	Cryptographic proof of per-customer balances	Strong privacy; complex to implement	Medium
Hybrid (chosen)	On-chain data + quarterly attestation + annual audit	Balances transparency & credibility; higher cost	Recommended
ZK-proofs	Prove reserves without revealing data	Privacy + certainty; cutting-edge, expensive	Future

Quarterly attestation

Independent CPA confirms circulating supply ≤ segregated USD reserves. Published within 45 days of quarter-end.

Annual audit (GAAS)

Nationally recognized firm audits reserve accounts, issuance records & internal controls.

On-chain transparency

All mint/burn & treasury moves visible on Etherscan; in-app dashboard shows supply, burned & attested reserves.

Controls & emergency

Gnosis Safe multi-sig minting; reserves released only at closing; auto-pause + public disclosure on any shortfall.

Attestation firms under evaluation: Mazars, Armanino LLP, or top-tier firms with crypto / RWA experience.

Limitations & risks

Proof of Reserves is a point-in-time verification — it does not eliminate all risk (future mismanagement, bank failure, smart-contract vulnerabilities). Even with perfect reserves, holders remain exposed to real-estate market risk, option-exercise conditions, and contract risk. Moda Homes maintains insurance and internal controls to further protect reserves. Not financial advice.