FAQ / 01
Frequently asked
questions.
01What is DAB Protocol?
DAB Protocol is building regulated infrastructure for real-estate exposure under the EU MiCA framework. The company is in pre-application dialogue with the Bulgarian Financial Supervision Commission (FSC) regarding an Asset-Referenced Token (ART).
02What is an Asset-Referenced Token (ART)?
An ART is a digital token that references the value of underlying assets and is regulated under Title III of Regulation (EU) 2023/1114 (MiCA). The token does not represent direct ownership of the property.
03Do token holders receive yield or interest?
No. The token does not provide yield or interest to holders in their capacity as token holders (Article 40 MiCA). Rental income covers the costs of the SPV and replenishes the liquidity buffer. The value of the building reflects its income-generating capacity — this is not interest paid to the holder.
04How are the underlying assets held and who is the custodian of the reserve?
DAB as issuer owns 100% of the SPV. The building and the SPV shares form part of the reserve and are held with a bank custodian (Article 37 MiCA). Assets in the reserve must be free of encumbrances. The reserve is legally segregated from the property of DAB.
05Who is the custodian of the token under MiCA Title III and who holds the keys?
Under MiCA Title III: the issuer (DAB Protocol) issues the token and performs redemption (Article 39). The reserve (including SPV shares and cash) is held by a credit institution (bank custodian) under Article 37. Administrative keys to the smart contract (mint/burn, pause, etc.) are controlled by the issuer. This is technical control over issuance, not custody of holders’ tokens. Holders’ tokens may be stored in their own wallets or with a licensed custodian (CASP) if the holder chooses. Until authorisation, no tokens are issued to the public.
06Does the inability to hold client tokens mean DAB cannot hold the SPV?
No. The SPV is part of the reserve. The reserve is held with a bank custodian. DAB as issuer owns 100% of the SPV, but the SPV shares are held in a custodial account at the bank. Control over token issuance and custody of reserve assets are different things.
07Can holders request redemption?
Yes. The holder has a permanent legal right of redemption against the issuer at the market value of the asset, and against the segregated reserve if the issuer is unable to pay (Article 39 MiCA). Conditions and any limits will be disclosed in the white paper.
08Does the token represent direct ownership of the property?
No. The token provides regulated exposure to the value of a specific building through a redeemable token. It does not confer direct legal title to the property.
09What stage is the company at in the regulatory process?
The company is in pre-application dialogue with the FSC and targets filing in the first half of 2027. Until authorisation, no tokens are issued and there is no public offer.
10Are personal data stored on the blockchain?
No. Personal data and KYC information are stored entirely off-chain. No personal data is recorded on-chain.
11How is liquidity supported?
The liquid part of the reserve is held with a bank custodian. Additional liquidity may be provided by the promoter under agreed terms, but it is not called “reserve”. Under MiCA the reserve is one and is legally segregated.