Fractional ownership shares rewards

Core Concept

• Classic cars (e.g., a 1960s Ferrari) are tokenized into dNFTs, representing fractional ownership shares.

• The number of shares minted is proportional to the car’s initial listed value.

• $HAOG token holders can purchase these fractional shares, and their reward tier depends on the amount of $HAOG tokens they hold.

• Rewards are distributed in USDC based on the car’s yearly appreciation (difference between the initial and updated value).

Example Ferrari

Ferrari 250 GTO (produced in the early 1960s), one of the most iconic and valuable classic cars, as our example.

Initial Listed Price (e.g., in 2020): $40,000,000 USD (a reasonable historical estimate for a 250 GTO at auction in recent years).

Updated Price (e.g., in 2025): $50,000,000 USD (reflecting appreciation over 5 years, consistent with real-world trends for this model).

Yearly Appreciation: Calculated over the period between the initial and updated prices.

Assumptions

The total value of the car is tokenized into a fixed number of dNFT shares (e.g., 100 shares for simplicity).

Rewards are distributed proportionally to the number of shares held, modulated by $HAOG token tiers.

USDC rewards are injected annually based on the appreciation.

$HAOG Token Tiers

Holders’ rewards depend on the number of $HAOG tokens they own, which determines their tier and reward multiplier.

Tier 1: 1,000 $HAOG tokens → 1x multiplier (base reward).

Tier 2: 5,000 $HAOG tokens → 1.5x multiplier.

Tier 3: 10,000 $HAOG tokens → 2x multiplier.

The multiplier increases the reward per share proportionally.

Rewards per Holder

Rewards are paid in USDC based on the number of shares owned and the holder’s tier multiplier.

Reward per Share = Yearly Appreciation per Share × Tier Multiplier As example Holder A: Owns 5 shares Tier 1 (1,000 $HAOG, 1x multiplier) Reward = 5×20,000 ×1 = 100,000 USDC per year Holder B: Owns 3 shares, Tier 2 (5,000 $HAOG, 1.5x multiplier) Reward= 3 × 20,000 × 1.5 = 90,000 USDC per year Holder C: Owns 10 shares, Tier 3 (10,000 $HAOG, 2x multiplier) Reward = 10 × 20,000 × 2 = 400,000 USDC per year

General formula

Where is: Tier Multiplier: Based on the holder’s $HAOG token balance. Number of Shares: Total dNFT shares minted for the car. Number of Years: Time period over which appreciation is calculated. Updated Price - Initial Price: Total appreciation of the car. Shares Held: Number of dNFT shares owned by the holder.