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description: How can a token be backed by floating infrastructure?
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# How it Works

By selling tickets to rent or use seasteads, fishing boats, fish cages and related properties, we can effectively pre-mint the rental income which that product would produce, thus proving its profitability. To give an example, a business may wish to build a seastead (floating house) in a coastal area that will be used as an AirBnB. In order to fund the construction of this seastead they will list their desired model, location, and other relevant details on the Stead dapp, this will allow interested parties to buy Stead Tokens, while the funds they used to buy them are then put into the construction. Once the seastead has been built, the Operator of the seastead, in this case the business that collected the funds, will be obligated to burn Stead Tokens for the use of the seastead. This process can be used as well for any type of floating asset, including those discussed earlier.\


At this stage, the Operator is renting the seastead, and is not the owner of the property. The Stead tokens are tickets that were pre-sold for use of the property, and must then be used up in order for the Operator to keep using the seastead at all. The result of this system, is that the tickets that were sold off in the initial sale, will eventually be bought back and burnt by the Operator of the property, until they are no longer obligated to burn tickets. This will only happen after a greater dollar value has been burnt compared to the dollar value originally raised to fund construction, which means that the value of the tokens will grow over time. Despite an unlimited maximum supply of tokens, the tokenomics of the system make it deflationary relative to the US Dollar.

<figure><img src="https://4267213320-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FET034mQs5VxyAIMNmgQV%2Fuploads%2FWUoC6Umq022YBtjz0ywU%2Fmonth-by-month.jpg?alt=media&#x26;token=261d0367-b3d6-43e7-a895-321e6f661000" alt=""><figcaption><p>The amount of tokens needed to rent time with an asset changes from month to month. If Stead price increases, less tokens are burned, if it decreases, more tokens are burned, so the price is expected to maintain a relatively stable trajectory.</p></figcaption></figure>

Another benefit of this system, is that purchasers of this token can obtain a digital asset backed by a real world asset, whether this asset is seasteads, boats, fish cages, or even land based homes. As opposed to most cryptocurrencies which are not backed by any physical assets, and are often increased in value purely by speculation, the increase in value and the profits driven by the physical assets backing Stead will guarantee a baseline value that will increase over time relative to the US dollar.\


