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Check MVL's Blog to get insights into

MVL's project-building journey

BlockchainMVL Vehicle Assetization, RWA Tokenization Pilot Project Results (DEMO NFT Final)

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27 Mar 2024

Hello, this is the MVL team. 


MVL is continuously innovating the mobility industry using blockchain technology.


Since 2018, MVL’s actual mobility businesses such as the TADA ride-sharing service and ONiON Mobility, a vehicle and energy ventures, have seen significant growth in Southeast Asia, now reaching a stage of stable profitability. Consequently, we are steadfastly fulfilling MVL's initial promise of creating a 'mobility ecosystem where participants share value' through initiatives like ecosystem funding and sustainable staking programs.


Now, we're thrilled to announce that one of the key drivers for MVL's future growth, the Vehicle RWA-NFT project, is beginning to take shape. In particular, the new attempt of 'Vehicle Assetization' integrates blockchain technologies such as data management and NFT into the mobility service, encompassing MVL's actual vehicle assets and rental finance.


Through this initiative, MVL believes it can bridge the financial infrastructure gap between developed and developing countries in the mobility industry and create an inclusive financing tool, benefiting a greater number of people.




Contents and Results of Vehicle RWA Pilot Project (DEMO NFT)


The DEMO NFT, a pilot project for vehicle RWA initiated two years ago, has a structure that grants partial ownership of actual vehicles. In line with the fundamental principle of RWA, which involves tokenizing real assets on the blockchain, DEMO NFT can be considered a financial product where profits are received upon maturity.


In accordance with this, we would like to share the results of the vehicle RWA (DEMO NFT) conducted over approximately two years from March 2023, and as promised, distribute actual profits to existing DEMO NFT holders.


First of all, the basic structure of MVL’s vehicle RWA is as follows.


The rights to the vehicle, encompassing both the vehicle asset itself and the revenue generated from rentals, are integrated into NFTs.


All our ONiON vehicles currently in operation throughout Southeast Asia are connected vehicles. This implies that crucial ownership data of the vehicle asset, including real-time location, mileage, and pertinent certificates, are seamlessly integrated into the MVL protocol. Additionally, since these vehicles are rented out to local TADA drivers, the driver's monthly payments, and also financial data are also synthesized into the NFT.


Moreover, all our ONiON vehicles deployed across Southeast Asia are connected vehicles, ensuring that essential ownership data, such as real-time location, mileage, and relevant certificates, are effortlessly incorporated into the MVL protocol. Furthermore, as these vehicles are leased to local TADA drivers, their monthly payments—comprising financial data—are also integrated into the NFT ecosystem.


Traditionally, verifying vehicles situated in foreign countries or accurately gauging rental revenue poses significant challenges, impeding the widespread adoption of such products. In MVL's RWA protocol, vehicle data, various proof of ownership, rental revenue streams, are connected and synthesized on the blockchain, making it possible to implement them simply as a single NFT.


In essence, owning MVL's RWA NFT means holding all rights to the actual vehicle, including ownership and rental income. This allows vehicles to transform into mainstream financial assets.


Let's move on to the profitability aspect of vehicle assetization.


The MVL team has developed and piloted the vehicle RWA NFT model in Southeast Asia over the last two years. Initially, there were apprehensions regarding feasibility, stemming from limited experience in vehicle production and sales. However, as the business landscape has stabilized, establishing it as a viable financial product has become feasible.


Here are the structure and profitability details of the vehicle RWA pilot project, DEMO NFT:


In March 2022, DEMO NFT was priced at approximately $500 per unit upon sale. This valuation amounted to about one-tenth of the value of the connected vehicles at the time.


As of March 2024, two years later, the measured value of the NFT has increased to approximately $876 per unit. This value is determined by combining the residual value of the connected vehicle assets and the accumulated rental fees over the period.


Accordingly, the final return on investment (ROI) for MVL's vehicle RWA, DEMO NFT, is as follows:


In this demonstration model, a significantly higher ROI, reaching a maximum of approximately 94.67% based on the 2-year ROI, was observed compared to other products. This is attributed to a combination of factors including the cumulative rental income from vehicles over the past two years, increased vehicle occupancy rates per NFT due to local vehicle production efficiency, and the appreciation of MVL's value as a primary means of payment.


Here are more specific results regarding the marketability of vehicle RWA.

 

  1. High Loan Interest Rates in Southeast Asia

The baseline profitability of MVL RWA NFT, with a primary focus on the Southeast Asian mobility market, is closely intertwined with the elevated interest rates prevalent in the region. Presently, in Cambodia, bank loan interest rates for drivers aiming to purchase vehicles hover around 25% annually. Conversely, ONiON's vehicle rental program offers drivers more favorable interest rates, while also providing a compelling opportunity for investors from developed countries to achieve higher returns compared to their domestic markets.

  1. Low Driver Risk Due to Direct Operation of TADA Service

Despite the fact that ONiON T1 vehicles primarily used for commercial purposes, a majority of T1 drivers use our TADA software for their transportation service. Throughout this process, the assessment of driver creditworthiness and the payment of rental fees are managed through TADA's data and technology infrastructure. This streamlined approach effectively mitigates the risk of non-payment by drivers compared to traditional financial models.


  1. Accumulating and Holding Rental Fees as MVL Tokens until Maturity

In this model, rental fees collected are steadily accrued and held as MVL tokens over a two-year period, disbursed upon maturity. Profits accumulated can be evaluated in both USD-based returns and an increase in the quantity of MVL tokens, providing investors with a potentially higher rate of return. Consequently, this model not only ensures stability in terms of profitability but also offers the prospect of additional gains if the value of MVL tokens appreciates.

  1. Efficiency Improvements in ONiON's Vehicle Production and Operation

Since its establishment in 2022, ONiON has significantly improved its production efficiency and infrastructure operational capabilities. As a result, the proportion of vehicles occupied by a single NFT, initially valued at $500, has increased by approximately 25%, from 10% to 12.5%. In upcoming RWA NFT models, leveraging the current advancements in vehicle production capacity, we anticipate the introduction of more reasonably priced vehicle product models.



Future Directions for MVL's RWA NFT 


Through the DEMO NFT pilot project, we have verified that MVL's vehicle-based financial products can be materialized in the real-world. Additionally, we have identified areas for improvement and possibilities for mainstream adoption.


Building upon these achievements, MVL intends to actively advance the vehicle RWA project in the future.


The future direction for MVL's RWA NFT initiative :


In this pilot project, we've successfully established the foundational framework for vehicle asset management by integrating mobility financial data onto the blockchain. We've completed all essential development tasks, including linking vehicle asset data to NFTs, and we've also created detailed product pages.


We are currently working on refining our products based on the regulatory requirements of each country to ensure mass adoption. 


Firstly, we plan to publicly disclose the location and driving data of actual vehicles on a map-based platform. While a 10% annual interest rate on vehicle RWA may be appealing to investors from advanced countries, the inability for investors to directly verify and manage overseas vehicle assets can be a barrier to entry. To address this, it's necessary to prove the existence of vehicle assets with data and manage them on the blockchain. Additionally, this aligns with recent attention in the blockchain market on foundational technologies categorized under DEPIN (Decentralized Physical Infrastructure Network).


Furthermore, we are refining target countries for long-term growth, enhancing compliance and sales strategies. Currently, we are considering the Japanese market, where prolonged low-interest rates have popularized overseas asset investments. However, as RWA involves both physical assets and finance, compliance with regulatory authorities is crucial. Therefore, we are in the process of establishing a local MVL entity in Japan and undergoing final legal and tax reviews locally. Through these steps, we anticipate the first sales to commence as early as the second quarter of this year.


We've shared the progress and final results of MVL's vehicle RWA NFT empirical project conducted over the past two years. DEMO NFT holders can claim their profits through the link provided below:


        DEMO NFT Claim ๐Ÿ‘‰ https://demonion.io/claim 


Moreover, in 2024, we plan to introduce visible products such as MVL Staking linked to actual business performance, DEPIN Map as a mobility data hub, and the full launch of vehicle RWA NFTs.


Moving forward, MVL will continue to enhance innovation in the traditional mobility market and increase recognition in the global crypto market through our technological prowess. We deeply appreciate the continuous support and participation of the MVL community.


Thank you.


Trust-Driven 

MVL 

40 Sin Ming Ln, Singapore 573958

โ“’ MVL Foundation Pte. Ltd. All rights reserved.

40 Sin Ming Ln, Singapore 573958

โ“’ MVL Foundation Pte. Ltd. All rights reserved.