Our first batch of memberships are in the form of unique non-fungible tokens. These are blockchain-based digital assets that cannot be copied or forged. They’re sequentially numbered so that earlier buyers can be prioritized over later ones when they’re picking out their land. The amount of land that a particular token entitles its bearer to is determined by its purchase price in US dollars, which is a matter of public record on the blockchain. Each dollar buys the right to one square foot of land so if you were to buy a particular token for a thousand dollars, it would entitle you to pick out a thousand square feet of land to use. Tokens will only be available directly from us at first, but can easily be bought and sold peer-to-peer as well as on the open market via NFT exchanges. Token buyers can wait to redeem their tokens upon their physical arrival at the property or they can contact us through the website to schedule a live video call and stake their claim in advance. Membership agreements are signed into legal record when the token holders arrive to take physical possession of their claims.
Token Value and Legal Classification
Frenly Park digital tokens are tools for indicating the value of memberships while also facilitating their sale. They don’t entitle their holders to dividends or company profits, they retain their original face value (1$ = 1sq ft), they’re not expected to appreciate in value, they’re only intended for use on company property, and they’re offered only to individuals seeking membership. As such, they’re classified as utility tokens (like poker chips) rather than as securities, and so are not regulated by the SEC.