Collateral
NFT #2 Launch
Support affordable housing and earn $EMP
- Launch 17th Dec
- 3 334 NFTs
- 900 $EMP per NFT
- ~3 million $EMP locked
- 11.1% APR
- 1 year lockup
What does the Collateral NFT do?
Collateral NFTs provide an opportunity for $EMP token holders to support housing developers to meet their collateral obligations, while also earning $EMP rewards in the process.
This novel approach to collateralisation, which leverages our $EMP token, ensures our ability to scale across multiple countries while providing investors a liquid form of security.
How do I earn rewards?
Buy NFT
Collateral NFTs can be purchased for 900 $EMP each
Lock $EMP
The initial Collateral NFTs will lock up $EMP tokens for 1 year
Earn Rewards
After 1 year, Empowa can buy the NFT back for 1 000 $EMP (11.1% APR)
Who is the developer of the Kenya homes?
The developer for this project is BrownCap – a top property developer in Kenya.
BrownCap have been using Empowa Pay for data recording since the middle of last year which has helped us to track their performance and evaluate this project.
You can learn more about them here
Why is collateral needed
and what is the role of $EMP?
Demand and Supply Dynamics
When we raise funds to enable the delivery of affordable housing, an agreed amount of EMP tokens is required as collateral for the loan. This collateral, provided in addition to the underlying property, ensures the loan is over-collateralized, reducing risk for the investor and lowering the required rate of return.
The EMP tokens are either purchased by the developer on the open market or borrowed from the community. Community members who stake their EMP tokens with the developer receive a collateral NFT as proof of staking. This NFT can be traded on the open market if the original EMP staker wishes to exit their position before the agreed unstaking period. Those who support the developer by staking their EMP tokens earn a reward at the end of the lock-up period.
The EMP tokens raised are then locked away for the agreed term, removing them from the circulating supply. As more projects come online, demand for the token will increase, while circulating supply will decrease.
EMP Collateral Calculator
Use this calculator to determine the amount of EMP locked per additional affordable house provided
This calculator is for indicative purposes only. The percentage of funding required to be collateralized is determined on a deal-by-deal basis. This calculator uses the predicted rate for initial projects, assuming an EMP value of $0.10. With more projects we expect the percentage of collateralization required to decrease and the EMP price to increase.
Ready to support Empowa?
Purchase your $EMP token to start staking and supporting access to affordable housing.
Buy EMP nowFAQs
What are Collateral NFTs?
Collateral NFTs provide an opportunity for $EMP token holders to support housing developers to meet their collateral obligations, while also earning $EMP rewards in the process.
This novel approach to collateralisation, which leverages our $EMP token, ensures our ability to scale across multiple countries while providing investors a liquid form of security.
Projected $EMP Rewards per NFT?
After the period of 1 year, each Collateral NFT will accrue 100 $EMP worth of rewards.
This is based on the following calculation:
Cost of Collateral NFT is 900 $EMP
Empowa will buy back Collateral NFT for 1 000 $EMP
Reward per Collateral NFT:
1 000 - 900 = 100 $EMP
This equates to an APR of 11.1%
Who is eligible to purchase the NFTs?
Anyone interested in supporting sustainable housing projects in Africa can purchase the NFTs. However, priority will be given to FC NFT holders who will be able to purchase from an allocated supply of 500 NFTs within the first 24 hours.
What happens after I buy an NFT?
Upon purchasing a Collateral NFT, the equivalent EMP tokens will be locked up for a year as part of collateral for the homes. At the end of the lock-up period, NFT holders have the option to sell back their NFT to Empowa for $EMP tokens.
Where can I trade Collateral NFTs?
Yes, you can do so on the Empowa NFT Marketplace.
This is needed so that the Collateral NFTs can be traded in $EMP avoiding the currency risk of having to trade an NFT that has an $EMP reward in $ADA.
The marketplace will be there to allow for the trading of Collateral NFTs in our $EMP token, naturally the NFTs can be traded on other marketplaces if the seller and buyer are happy to trade in $ADA.
Who is the local housing developer?
The local developer is BrownCap. They have been using Empowa Pay for data recording since the middle of last year which has helped us to track their performance and evaluate this project.
How much $EMP will be locked up?
For this initial launch, we have calculated that 3 000 000 EMP will need to underwrite the funding for the homes.
The approach for determining this level is explained in our black paper a video explaining the approach can be viewed here
The initial Colateral NFTs will lock up this $EMP for 1 year.
