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From Rent to Your Wallet: How Dividends Flow

January 3, 2026
8 min read

Transparency is core to Estate Royalty. Here's exactly how rental income from physical properties becomes USDC in your wallet every month.

The Flow: Visual Overview

Tenant Pays Rent
Monthly collection
Smart Contract
Captures revenue
USDC Conversion
Stable value
Your Wallet
Monthly airdrop

Step-by-Step Breakdown

Step 1: Tenant Pays Rent

Each property in our portfolio has tenants—whether short-term vacation renters or long-term residents. Rent is collected by our licensed property management partners on the ground.

For $BAHARI (our Watamu property), this includes:

  • Short-term vacation rentals (Airbnb-style)
  • Monthly long-term tenants
  • Event rentals and special bookings

Step 2: Revenue Capture

This is where the magic happens. Unlike traditional real estate where you wait for the landlord to "remember" to distribute profits, our smart contracts capture revenue automatically.

Key Point: Revenue is captured at the source—before the property manager receives funds. This eliminates counterparty risk and ensures transparent, verifiable income flows.

The smart contract records:

  • Exact amount collected
  • Timestamp of collection
  • Source property identifier
  • Deductions (if any) for maintenance reserves

Step 3: USDC Conversion

Rental income arrives in local currency (Kenyan Shillings for our East African properties). The protocol immediately converts this to USDC through licensed fiat-to-crypto rails.

Why USDC?

  • Stable Value: Pegged 1:1 to USD, no crypto volatility
  • Universal: Easily usable across DeFi, or off-ramp to fiat
  • Regulated: Circle-issued, fully backed, audited reserves

Step 4: Distribution Calculation

At the end of each month, the protocol calculates your share of the dividend:

// Simplified distribution logic
your_dividend = total_rent_collected × (your_tokens / total_supply)

For example, if $BAHARI collects $4,000 in rent this month and you own 1% of the token supply, you receive $40 in USDC.

Step 5: Airdrop to Your Wallet

On the 1st of each month, dividends are automatically sent to every wallet holding the token. No claiming. No gas fees for you. It just arrives.

Pro tip: Make sure you hold tokens in a self-custody wallet (not on an exchange) to receive airdrops. Tokens held on centralized exchanges may not be eligible for distributions.

Transparency & Verification

Every step is verifiable on-chain:

  • Revenue deposits visible on block explorer
  • USDC conversion transactions recorded
  • Distribution calculations open source
  • Monthly reports published publicly

This is real estate income with a level of transparency impossible in traditional property investment.

Ready to start earning?

Get $BAHARI Tokens