2. Submission to the DAO

Before a property can be acquired, it must undergo a governance vote within Tulpea’s DAO. This process ensures transparent, decentralized and rigorous risk assessment, and consensus around assets deserving financing.

The primary objective is to confirm the project's financial viability, ensure alignment with Tulpea’s reputation as a trusted decentralized intermediary, and guarantee profitability. Ensuring sustainability is essential for maintaining confidence among borrowers, lenders, and all stakeholders, thereby fostering long-term DAO growth.

Decentralized Risk assessment: Analysts

Curators submit project proposals to the DAO. Recognizing that not all DAO members possess the required expertise, a specialized role is introduced to strengthen the risk assessment process: Analysts. Analysts are elected by the DAO and possess verified expertise in critical areas relevant to risk evaluation, such as real estate asset typologies, geographic markets, risk management, financing structures, etc. Thus, token holders who lack the expertise to assess investment proposals can delegate their voting power to Analysts.

To ensure unbiased and effective governance, specific safeguards are implemented:

• Voting power of Analysts is capped to prevent undue influence.

• A minimum voting quorum must be achieved to validate decisions.

• Consensus across all relevant Analyst specializations is required.

• Curators cannot vote in the risk assessment process to prevent conflicts of interest.

Analysts must stake a certain amount of tokens to align incentives and reinforce accountability. Their decision during vote will have consequences on their incentive, with a repuatation system that can be redeemed for $TULIP and impacting voting power for next vote:

Outcome	Analyst validated the deal	Analysts rejected the deal
Deal accepted & profitable	Earn a commission Gain reputation points Increase voting power	No commission No reputation points Voting power decreases (slashed after 5 consecutive incorrect rejections)
Deal accepted & defaults	Stake slashed	Earn reputation points Increase voting power
Deal rejected by DAO	No commission No reputation points Voting power decreases (slashed after 5 consecutive incorrect rejections)	Earn reputation points Increase voting power

This model naturally selects the best Analysts over time based on their track record, while preventing malicious coercion and governance exploit.

The governance and incentive mechanisms for Curators, Analysts, and token holders will be clearly defined before the DAO launch.

In the long run, anyone will be able to propose the financing of an asset. If a curator validates it, it will be submitted to the DAO and funded only if consensually approved. This mechanism fosters a fully decentralized ecosystem with aligned incentives for all participants.

Analysts and Curators will oversee the health of the financing throughout its whole lifecycle. Based on regular collateral evaluations and adherence to the repayment schedule, they can issue DAO proposals in response to the project's performance.

For instance, if the project performs well, they may recommend selling the property to realize profits and settle the debt with a premium. Conversely, in case of a default risk, they could propose liquidating vested REBT to repay outstanding obligations.