[Translation] REX Token Sale, Pre-Alpha, and One-Year Plan

REX（Official Website）

I first noticed REX（a decentralized real estate multi-listing service for a global network）last year, and I seem to recall they were in seed rounds or something similar.On July 31, an ICO (token sale) is planned for REX（the decentralized real estate MLS for the decentralized web). I translated the official blog that discusses the token sale information and a one-year roadmap.
（Note: whether I personally participate is not yet decided）

If you’re new to REX, please read first “What is REX? A decentralized real estate multi-listing service for the decentralized web”.

Now, let’s read it.

REX Token Sale, Pre-Alpha, and a One-Year Plan

Our mission at REX is to connect retailers, sellers, buyers, and agents through a decentralized network. This decentralized network includes a system that rewards people who contribute to building a new global-scale real estate listing database that is open and accessible to anyone.

We want to break down the most fragmented and slowly evolving business sector and pave the way for cheaper and more efficient real estate transactions. To achieve this, we are developing an open MLS and transaction platform on Ethereum.

Problems

In the United States, real estate is a $410 billion industry. Globally, it is estimated to be worth about $2.17 trillion. Real estate has traditionally been a regionally rooted business. However, the world is rapidly globalizing.

People in developing countries are migrating to urban areas at an astonishing pace. Benefiting from technology, these migrants are securing a series of new jobs, increasing their overall economic presence. Even looking at China alone, by 2022, 76% of the population is expected to be in the middle class.

In India as well, the middle-class population is projected to grow from 127 million in 2017 to 567 million by 2025. A combination of wealth, transportation, and the ability to work remotely will redefine where and how people buy real estate. To meet global demand, a global data standard is needed—a single database that allows people to access real estate information from markets around the world (or an environment like IDX).

It is estimated that up to 92% of real estate buyers use digital MLS to search for property. Today, the United States has thousands of MLSs, and there are hundreds of thousands worldwide. Most services are expensive and largely non-interoperable. Users have only two choices.


It is well known that these methods are inefficient and inconvenient for buyers, sellers, agents, and companies.

First, let’s think about why such systems were created in the first place.

Before the Internet was born, data was distributed from content providers (a few) to consumers (many). In the early 1990s, the Internet emerged with the potential to decentralize content delivery.

HTTP created global benefits for communication, but economically, most of us are in an asymmetric relationship. We (users) provide value via social media posts and real estate listings, yet gatekeepers profit financially.

MLS is a prime example of this asymmetry of interests. MLS consists of a huge database that centralizes information and makes content providers（listings）bear the cost.

As an example, brokers, agencies, and corporations pay about $35 per listing, and for digital MLS they pay $1,000 per listing. Their data is then sent to third-party platforms, where the highest bid wins with the purchase rights. Additionally, delays and poor communication drive up costs, and closing a deal typically takes 60–90 days.

U.S. homebuyers are estimated to pay 3–5% (between $5,000 and $10,000) in closing costs. In commercial transactions, these costs can be double or triple. The combination of unnecessary intermediaries and outdated technology has created such a distorted system.

Centralized information-distribution models are excellent for server owners, but users are left with few choices beyond paying fees or not using the system. Around the world, companies have attempted to solve these problems, but failed due to redundant business models and the technologies used.

REX believes data delivery is at a turning point thanks to the emergence of Ethereum and IPFS, which redefine digital distribution.