How Can Smart Contracts Automate the Distribution of Income (E.g. Rent) from a Tokenized RWA? ▴ Learn

How Can Smart Contracts Automate the Distribution of Income (E.g. Rent) from a Tokenized RWA?

Smart contracts can automate income distribution by being programmed to receive the off-chain revenue (e.g. rent in stablecoins) from the RWA's management entity. The contract holds the tokenized asset and contains the logic to automatically divide and distribute the income proportionally to all holders of the fractionalized tokens (ERC-20 shares) at predetermined intervals.

This eliminates the need for a manual intermediary, reducing costs and ensuring transparent, timely payments to all investors.

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