# Real Estate NFT

Real Estate NFTs, or reNFTs, are digital tokens on the Ethereum blockchain that represent fractional ownership of a piece of real estate. With reNFTs, holders can participate in the governance of the property or sell their tokens to others who wish to take over ownership. Each successful Initial Real Estate Offering (IRO) will mint and distribute reNFTs to participants, which can be traded on NFT marketplaces like OpenSea and Rarible.

reNFTs are not governance tokens, as they are specific to the property they represent. Instead, HorizonDAO's governance token, SKY, allows holders to participate in the governance of the platform itself. Unlike stablecoins, reNFTs are not pegged to a specific fiat currency, but their value is indirectly supported by the value of the underlying real estate. This makes reNFTs a more decentralized and potentially more profitable investment than stablecoins.

There are several ways in which reNFT holders can generate yield from their tokens. Holders can receive revenue distributions from the real estate income after expenses, benefit from capital appreciation of the corresponding real estate, or earn yield by staking their tokens in liquidity and lending pools. Additionally, reNFT holders can buyout other reNFTs to gain full ownership of the underlying property. A tender offer process is used where all reNFT holders except the proposer can vote to approve, reject, or counter the offer, incentivizing game theory.
