Multinational hotel chain Novotel has partnered with the technology firm DelNorte in order to tokenize its newest project. This new project includes a hotel and residential areas in the Republic of Georgia. It will be situated in the most exclusive section of Batumi’s seaside city, near the botanical garden with flower species from all over the globe, and surrounded by the Caucasus Mountains and the warmth of the Black Sea.
Tokenomics is a collective word in cryptocurrency that describes the elements that influence a token’s use and value. Tokenomics fosters trust by harmonising each actor’s behaviour and fortifying the blockchain protocol. The elements influencing the token include its generation and distribution, supply and demand, incentive systems, and burn schedules.
In the crypto community, well-designed tokenomics is critical to the success of a coin. Before participating, investors and stakeholders should evaluate a project’s tokenomics to make educated judgements. In the end, initiatives with effective tokenomics are more likely to outlive and perform better than those without clever and well-designed token incentives.
The brand, which is one of the most prestigious and influential in the global hotel and real estate industry, wants to use Blockchain technology to innovate in the sector, expand its operations, and boost the fragmentation model of real estate investments. Delnortre stated that both American and foreign investors will profit from the greater security and mobility of transactions made possible by this collaboration.
The new Novotel Living project, a collection of high-end residences in Batumi’s most renowned district, will be tokenized as the first step in the relationship between Novotel and Del Norte. Novotel wants to leverage blockchain technology to establish a new technical effort that will allow it to disrupt the sector, increase its business, and reinforce the real estate investment fragmented model.
DelNorte’s blockchain technology works well for this real estate world since its tokenization approach allows for the partition of properties through individual and immutable smart contracts that give evidence of ownership and process security. The smart certificates issued by DelNorte are divisible without impacting the underlying property value. Once divided, they supply each shareholder with a digital copy and a unique key, allowing for hands-free dividend distribution.
A survey conducted by BNY Mellon included 271 institutional investors and traditional buy-side organisations that suggested that investors would enter the crypto market slowly rather than with a quick dash and large profit scheme. The study claims that institutional investors are growing increasingly interested in tokenization. According to 97% of respondents, tokenization would transform asset management and benefit the sector. Tokenization has various benefits, including decreased transaction costs and easier access for mass- and retail-affluent investors.