MECOTO is a community-driven solution for tokenization of construction projects. It brings together a unique solution that helps contractors, suppliers, labourers, clients, consultants, token holders and investors, to create an ecosystem of synergistic progress backed by blockchain technology.
Each element complements the other in the system and drives construction forward contributing to the development of cities and projects in the middle east. How it works is very simple and will be described here:
A client consultant and contractor get together and agree on the development of a new project. A new project is approved by the municipality and building permits are issued.
The project is tokenized into multiple construction phases with each phase having its own smart contract where community members contribute their tokens too. A token holder contributes tokens to the smart contract address and accepts the terms and condition inside the smart contract like time duration, ROI, start and stop functions and deliverables. The smart contract is listed on MECOTO’s platform and it gets crowdfunded from the community. Once the contract is completely funded MECOTO takes care of the rest.
MECOTO uses its own cash float which is raised in private sale pre ico and ico stages including from outside third-party investors and an investor network to fund the construction with the contractor. The equivalent funds are used in proportion to the tokens contributed to the smart contract and the construction work begins.
Instead of giving money to the contractor directly MECOTO works with the suppliers who provide the construction materials like cement, steel, blocks etc. Once a week a MECOTO representative visits the construction site to document the work being done in written form on a checklist ledger and in video form.
A video is generated week by week and uploaded to all the contributors to the smart contract so they have clear visibility transparency and accountability on where their tokens went and how it is being used and to see the actual development of the project phase. They can also do site visits and inspections to the construction site anytime they desire if they are in the city the construction is taking place in.
Once the construction phase is complete a supervisor approves the work. Then a bill is submitted to the client or bank paying for the project and the contractor receives his payment. Upon receiving payment he immediately pays MECOTO back the initial capital plus the 7-10% profit on top for funding the phase. MECOTO instantly issues the ROI in tokens back to the contributors of the smart contract and their initial contribution of tokens is released back to them as well.
MECOTO keeps a float of MECOTO tokens to guarantee the ROI auto-executing the process inside the smart contract. Once the initial contributors receive their initial tokens back plus their profit in tokens. They can then use those tokens to immediately fund another construction phase or multiple phases continuing to generate returns on their tokens, Or they can liquidate their tokens and sell them on exchanges or peer to peer for fiat currency.
MECOTO takes the cash received from the contractor and replenishes the cash float to further fund more construction phases and it takes the 7-10% profit in cash to buy MECOTO tokens on the exchanges and open market and replenishes the token float to continue funding further smart contract contributions. This creates a no hassle convenient means of funding more and more construction phases with hundreds of contractors across thousands of projects and across tens of thousands of construction phases and smart contracts.
The token holders are happy because they consistently generate 40-50% returns in tokens annually and can convert them to fiat anytime they want. The contractors are happy because of their ability to take on more projects, pay their employees who in some cases may not have been paid wages for months, and generate more profits and stay busy.
The suppliers are happy because supplies being bought from them are being paid for as agreed and they can fund and fuel the growth of their business without chasing contractors down for late payments or no payments at all on consignment supplies. The city is happy because more projects are getting completed driving development and growth and revenues.
The token holders also generate returns on the appreciated value of the tokens they hold due to supply and demand and MECOTO constantly purchasing more of its own tokens to replenish the token float it holds in reserve.
MECOTO is happy because it has helped solve multiple different challenges and problems inside the construction space that otherwise would have gone unsolved in addition to generating revenue for ongoing sustainability and growth into new markets.
Everything is backed up by blockchain technology for transparency, accountability, safety, security and convenience providing a stable alternative to the fluctuations of the market dynamics creating a great utility use for its community of token holders. The real value of blockchain technology is visible when it can be used in real-world scenarios to improve existing systems processes and overall how an industry functions. Which is exactly what MECOTO does for the construction industry.