First Automated Yield Payment for ASX NFT Holders Approaches: How It Works

The very first automated yield distribution for holders of ASX’s recently minted-out NFTs is scheduled to take place on July 25, in just a few days’ time. 

The NFTs, which sold out less than one hour into the Public Round of their official mint process, are unique because they are backed by real-world assets (RWAs) in the form of a premium real estate investment. In particular, the Mountain View Apartment Complex in Arkansas, US.

Since the mint-out, and as community sentiment has grown, holders of the Mountain View Apartments NFTs have taken to calling themselves ‘Lords’ (short for Landlords) and said Lords now have less than a week before their assets pay dividends - quite literally…

The yield, estimated at 7.2% APY based on mint prices, is derived from the rent and appreciation for the apartment complex itself. 

ASX’s Yield Distributions: A Streamlined Process

According to a press release shared with BSCN ahead of time, the yield payment process is tailor-made to be as “Simple, Transparent, and Holder-Friendly” as possible. 

In simple terms, the end-to-end process consists of five key steps, as detailed below:

1. Receipt of Property Income: ASX Capital itself receives income from the aforementioned property; reliable income derived predominantly from tenant rent.
2. Stablecoin Conversion: For transparency, said income is then converted into highly-regarded stablecoins such as $USDC and $USDT. This is the point at which the traditional real estate yield is brought on-chain.
3. $ASX Buyback: The stablecoins are then used to purchase the project’s native $ASX token from the open market, on either centralized or decentralized exchanges.
4. NFT Holder Snapshot: The snapshot is taken on the morning of the distribution itself. Only holders of the NFT at that time qualify for that particular distribution.
5. Passive Airdrop: The relevant $ASX tokens are then proportionally distributed to those that qualified in the snapshot.

“This buyback mechanism not only funds the payouts but also adds buying pressure to $ASX, potentially benefiting the token's value over time”, reads the official press release.

Note that, unlike many yield distribution processes, ASX NFTs make the process entirely passive. There is no claim page or claim process that introduces friction to holders. The yield is fully automated - a deliberate decision from the ASX team.

“With ASX RWAs, you're diversifying your portfolio effortlessly. No need for hefty down payments or dealing with tenants—your NFT does the heavy lifting”

Additional Advantages of ASX’s RWA-Backed NFTs.

Aside from the yield derived from rental income on the Mountain View property itself, other potential benefits lie in store for ASX’s newfound ‘Lords’.

Firstly, the property itself may well appreciate over time, translating to increased yield and thereby increased NFT value. 

Secondly, come the advantages of being part of a small and exclusive community. Only recently, ASX announced that it had established a Discord server reserved only for those that hold one of the 3,000 RWA-backed NFTs. The benefits that come from this community membership, according to the official release, consist of “Exclusive access to ASX updates, events, and more”...

Lastly, there may well be advantages revealed in the future that are not yet fully announced. 

Given the success of ASX’ first NFT sale, it is well within the realms of possibility that the project may undertake additional mints later on. BSCN has noticed some community members suggesting that existing NFT holders may receive automated whitelist spots, should these future mints come to pass.

How Do I Buy An ASX NFT?!

With the official mint over, would-be Lords can purchase ASX’ exclusive NFTs on the secondary market. As detailed in a previous article, the majority of trading activity for the collection is currently undertaken on OKX’s NFT marketplace.

However, with only 1.2% of the collection currently available for purchase, availability is limited and may well become more so into the future.

Even if currently unable to join the Lords community, users can still become part of the wider ASX ecosystem. This is best achieved by following the project on X/Twitter, or even alternate platforms such as LinkedIn.