The Viva Network is a decentralized ecosystem that connects mortgage borrowers with global investors within a border less, blockchain-secured cloud platform. Viva’s innovative technology uses Ethereum smart contracts to underwrite and securitize private home loans into Fractional Mortgage Shares (FMS) which can easily be bought and sold on the Viva FMS Exchange (a Secondary Market Exchange) application. Using Fractional Mortgage Shares, The Viva Network allows investors to crowdfund mortgages of home buyers from anywhere in the world, making the process quicker and easier for home buyers.
The need for a service like Viva became clear when a member of the project’s team recalled an experience he had years earlier trying to buy a home. He first attempted to purchase in Bermuda, but was quoted an all-in interest rate in excess of 6% on a fixed 20 year term loan. This compared unfavorably with buying a home in the United Kingdom, for example, where he would be quoted a sub-2% interest rate on a mortgage with similar parameters: the same buyer, buying a property of similar value. Understandably each country bears its own economic risks, which holding all else equal would warrant different required returns to the lender.
Since the invention of blockchain based digital assets, it has become increasingly apparent that the ability to issue currency is no longer a monopoly held by the world’s nations. At the same time, the traditional banking model has become increasingly inefficient, with regulatory and compliance barriers creating new costs of operation, all to the detriment of the borrowers.
What are Fractionalized Mortgage Shares?
Each private mortgage underwritten by The Viva Network will be divided into 100,000 individual Fractionalized Mortgage Shares (“FMS”). These FMS are then submitted to the Viva Network Platform for crowdfunding and, if successful, they’re subsequently listed as active FMS securities on the Viva Platform’s FMS Exchange application. This will provide qualified VIVA token holders with the utility of being able to act as a crowd lender and purchase Fractionalized Mortgage Shares with their VIVA tokens. Owners of FMS will be entitled to the cash flows associated with the mortgage collateralized proportionally by the value of the underlying asset.
FMS are marketable and can trade at premiums, discounts or par value, depending upon changes in current market yields. An FMS during the crowdfunding stage will trade at par value, while, once listed on the VIVA FMS Exchange, they may trade at discounts or premiums. The quoted yield on a FMS is the internal rate of return, should the buyer hold it to maturity. Therefore, the quoted yield on a FMS is always conditional on a prepayment assumption and therefore the investor bears the risk that the realized yield may differ from the quoted yield.
VIVA Tokens (“VIVA”) are Ethereum blockchain based ERC20 tokens, designed to provide utility within The Viva Network Platform’s exclusive applications. VIVA will initially be distributed, to early believers of our vision for The Viva Network Platform, as recognition of contributions made during the Token Generation Event. If the team is successful, in bringing the vision of The Viva Network Platform to fruition, VIVA will provide token holders with many valuable functionalities as described in the project’s White Paper.
Token generation event
To participate in the token sale, participants must visit https://vivanetwork.org. The only accepted contribution for the Token Generation Event is Ethereum (all other digital currencies [cryptocurrencies] sent to the address provided will result in a loss of that currency.) Participants must send Ethereum from the address which they want to receive the VIVA tokens. This cannot be from an exchange. All Ethereum sent from an exchange will result in the loss of your VIVA tokens. If there are any undistributed VIVA tokens at the conclusion of the Token Generation Event, they will automatically be burned via the smart contract system.
For more information check: Viva Network website