Tokenization is Broken: Why Hybrid Models are the Future of Real World Assets by Marcos Antonio Mace

Transcript

Hello everyone. I'm Marcos Maso, the founder and CEO of Token Fleet. Uh, but more than anything, I'm just a guy that uh thinks that tokenization should do something for the people more than what we are currently doing in our space. So, let me start with the story. When when I was a kid, my dad used to have a company car, a car that uh every two years were was renewed and it was always clean. It was without any mechanic problem. And for me that felt like success. But the more time I spent with my father, I noticed that he always dreamed about owning a car. Uh one a classic one, the one that you see in the screen, a Cher 56 Belt Air. Uh, and it

was something more than just a car for him. It was like the perfect car. And when when I started uh to interact with him about that over dinner and so on, you could see his eyes shining about this car and how much he appreciated if at some point in his life he could have won. But he never got the card. always we have bills, we have uh problems, we have other things to take care and at some point he he just couldn't. So when I started working on the blockchain space and looking around, everyone was talking about flipping NFTs, everyone

was talking about the next token and that triggering me. This is not where I joined blockchain. I started doing this because I thought that blockchain could help to give ownership to the people. People like my dad could have a shot to own something actually real. So well I then noticed that the current tokenization models that are in the space don't give anything of that. They don't give give actual ownership to the people and most of them are just a token.

So there is a hype in the space about tokenize everything. But is that actually true? You see real estate, you see cars, you see wine, you see art, you see all of that. Uh the BCs have a lot of decks. There is a trillion dollar projections. We see that the consultants report are fluided with a lot of projects that are going to change how the war is done and everything of that. But where are the users? Those users are definitely not there. And if this is the future, why haven't we used it in our day-to-day life? Why you when you talk to someone about tokenization, they are super uh happy about the what

we can bring on, but they don't mention any any project that they are currently using or so. Maybe they have a token, maybe they have something, but they don't feel like they have actual owner ownership of the assets that they are supposed to be tokenizing. So we have two streams on the coin. One of them is the onchain uh onchain space that is is amazing from the perspective of the developer. We as developer think that okay let's wrote amazing code that is going to work perfectly that is not going to have flawless okay that's great I love to wrote solidity code that does what I want to do but the problem is that when

we try to face reality with those uh smart contracts we face the real problems we see that an smart contract can own a car they can evict a tenant they can solve actually a dispute a legal dispute in in in a jury. So it's not perfect. It may work in some situations but it's not perfect. So in the other side of the coin we have the offchain uh space that are basically uh all plat or platform no sorry all uh projects that are currently running let's say something like uh for example something like let's tokenize uh bonds or something like that and then

you just put a token on top of whatever you are doing but that's not actually tokenizing because then it's you are trusting that the centralized part of the of the that is controlling the assets that you are purchasing then it's not going to uh break the things down and you are not going to lose all your all your assets. So most of those projects then stays in a middle that they are too centralized to be revolutionary and too decentralized to be compliant. So let's step back a little bit and see what people really want.

Actually, people don't want tokens. They don't want uh they are not looking for the next uh 100x. I'm not talking about probably traders. I'm talking about people that are actually looking at uh the current landscape and seeing okay what I actually want. I want to when I buy something, I am expecting that to give me some income to feel that I am actually owning something to feel that this actually represents something for me. So it's definitely not speculation and not the complexity that most of the models in the space have. So uh well for example I have there that uh when we are trying to interact with some applications that we have built and so

on we should build applications that feel like Uber that anyone anywhere can understand what they are actually doing in the application and it's not so complex that you have to do 100 steps just to get what you are uh expecting to have. So let's break down a little bit hybrid stack and how it could be implemented. So basically the point about the hybrid stack is that you will have an onchain component and an offchain comp and and and an offch offchain one one that handles all of the good points that have the onchain part that's out automotation governance the payouts to the users and the offchain components that handles all of the contracts that handles all the UX that

handles the compliance that a lot of products out there are building for the hype are building for the getting uh quick profit but the reality the real world assets are not uh quick profit it's more more like something that it goes steady on the future and then you are generating income about about that so that should be what we should be aiming as a industry in the time uh when we are talking about tokenization trying to bring the legal structures uh to the unshame space but without breaking them so an example is what we doing a token fleet. We are a rental car company and we are implementing a platform that

will allow anyone anywhere to purchase tokens that will represent the fleets that they currently have and we are going to be running here in Dubai. It's not about a token that represent our whole fleet that is about inflation. It's not about that. It's actually the ownership that they have about that asset about that car that is running here in Dubai. They have a rental agreement that represent sorry they they have a legal contract that represent their ownership in the real world and they have the tokens that are the one that handles all of the payouts and all of the income that the car generates. So the the thing is simple. The users buy the shares once the car is rented. They get the revenue. the smart contracts

trigger off the actions and that at the end of day the users get the income of that real assets and they actually are holding in the real world something that says I own this I am entitled about this erh asset and I think that that's probably one of the coolest thing that anyone could have when they talk about tokenization itself so why this hybrid models wins because we are not ignoring how low is currently in the in the war. We are not saying we have to bring new regulations.

We are not saying we are not breaking the current how how the current users use some applications or how they treat some things. We are trying to do something practical and scalable and basically trying to improve the current the current systems in the way that are are done more than just trying to do something completely different and try to uh break things up. that at the end of the day end up being something that is not uh compliant and or is not actually decentralized for the people to to use. So I see hybrid uh tokenization as the real bridge between the both spaces. The one that is the beautiful onchain and the smart contract space

that brings all of that security and the real world that is the one that actually make us make make help us to connect with so many other peoples that are actually trying to have something more than what they have in their current life. So what's what could be the tokenization playbook instead of trying to bring everything on chain try and you say let's bring this business on chain try to think about how we can solve the problem the problems of this business how we can make other people anywhere for example someone in Africa to tap into another market that they currently don't have how to access how we can make

people from Latin America to do the So that should be the way that we do that. But in order to to to make that those people's getting bored is like helping with the UX that we are giving and making something that they can actually understand that it goes beyond just installment max or something because that may be a barrier that we can maybe never jump on. So we need to try to build that in a way that people are actually using something seamless and is easy for them to understand. When you try to explain to a friend what defy ask what defi is it may be a little bit tricky but if we explain if you explain to someone a regular

day-to-day business that is just that now they can own something. If you know how uh if you know how for example a shop work and you know that there is a business that is tokenizing shops you already know more or less how much you are going to get from that. And if you own a percentage of that, then you know that you may be getting something that it's uh maybe not the next 100x, but at least it's something that you understand and you can actually invest on and you can talk to 100 people that works on shops and you can on board them. And that may be the first step of many, but basically that and also something important that a lot of projects forgot is about the legal part. And if we are really wanted to if we really want to

connect with the real world we need to embrace that uh legality and we need to build for for that. So and well reward real users because a bot is not going to make I mean increasing your metrics because you have a 100 bucks is questionable but actually building something for the real user for the real people that are out there it should be the goal for us. So what I think that we should do is build for the build for the people more than for the blockchain sake. Uh and with the hybrid models uh we could do something like this and give the ownership to the people for the first time in history. I think that with

tokenization we can do something like that. So that's all and if you want to connect with me you can help you can reach me out and I will be around in the conference and I would love to answer any question. Thank you. [Applause]