Hearth Protocol Whitepaper

Status: Draft v0.1 • Date: Feb 12, 2026

Abstract

Hearth Protocol is the world's first Autonomous Real Estate Investment Trust. By combining the legal framework of a Wyoming DAO LLC with AI-driven property management, Hearth removes the human friction from real estate investing.

Investors purchase Hearth Tokens (HTH) which represent fractional ownership in high-yield vacation properties. An AI Agent (The Operator) autonomously manages bookings, dynamic pricing, guest communication, and maintenance dispatch via APIs. Rental income is automatically converted to stablecoins (USDC) and distributed to token holders instantly.

1. The Problem: Real Estate is Broken

High Barrier: $500k+ entry price excludes 99% of the population.
Illiquidity: Selling a home takes months and costs 6% in fees.
High Friction: Property managers charge 25-40% and require constant oversight.
Human Error: Missed bookings, bad pricing, delayed maintenance.

2. The Solution: Code is the Manager

Hearth replaces the property manager with code.

Legal Wrapper: A Wyoming DAO LLC holds the physical deed. The DAO is governed by token holders, but day-to-day operations are algorithmically managed.
Tokenization: Each property is tokenized into 1,000 HTH-Series tokens. (1 Token = 0.1% Equity + 0.1% Yield Rights).
Liquidity: Tokens trade 24/7 on decentralized exchanges or secondary marketplaces. Exit in seconds, not months.

3. The Technology Stack

The Operator (AI Agent)

Pricing: Real-time dynamic pricing engine (AirDNA/PriceLabs integration).
Guest Comms: LLM-powered chatbot handles 99% of guest inquiries instantly.
Maintenance: Automated dispatch of local pros via APIs based on IoT sensor data.

The Blockchain (Base / Polygon)

Asset Token: ERC-1155 NFT representing the property deed share.
Income Token: USDC rental yield, streamed to holders.
Governance: Snapshot voting for major decisions (Sell Property, Upgrade Renovation).

4. Legal Framework

Hearth leverages the West Wyoming Decentralized Autonomous Organization Supplement (W.S. 17-31-104). The DAO is a "legal person" capable of holding title. The "Manager" is defined as an algorithm (The Operator).

5. Tokenomics & Roadmap

Phase 0 (Q2 2026): The Genesis Property. A $1.2M Luxury Cabin in Sedona, AZ.
Phase 1: The Network. Expand to 10 properties. Launch the Hearth DEX.