Proof of Ownership (PoW) is the essential process Peoples Reserve uses to confirm that you are the true and rightful owner of a property you are utilizing in the PRN Marketplace.
This step verifies that the property belongs to you and meets specific eligibility requirements—such as being unencumbered for certain products—before any real-world value can be recognized within the Peoples Reserve ecosystem.
Proof of Ownership is required for:
- RWA Property Claims: Verifying your property is 100% free and clear to begin earning rewards.
- Property Refinance: Confirming your equity position before refinancing into a Self-Repaying Mortgage (SRM) or Bitcoin Mortgage (BMR).
What Documents Are Used
To complete Proof of Ownership, you must provide official documents that demonstrate legal ownership and the current status of the asset.
Common examples include:
- Recorded Property Deed: Must clearly show your name as the legal title holder.
- Homeowners Insurance Declaration: To verify the property is currently protected and active.
- Official Property Records: Government or tax records used to confirm the property’s Tax Assessed Value and lack of liens.
The documents required may vary depending on your region and whether you are pursuing a Property Claim or a Refinance.
Why Proof of Ownership is Required
A. RWA Property Claim
For an RWA Property Claim, PoW serves as the final audit to ensure the asset is 100% unencumbered. We must authenticate that there are no active mortgages, liens, or legal judgements against the title.
- Ensures the property is "Free and Clear" for participation.
- Validates the property value to determine your reward rate.
- Protects the ecosystem's funding reserves by only backing claims with verified, debt-free collateral.
B. Property Refinance
For a Property Refinance, PoW is the mechanism used to calculate your "Transformed Home Equity." This is the process of converting your existing real estate equity into digital collateral.
- Establishes the payoff amount for your current traditional mortgage.
- Determines the exact LTV (Loan-to-Value) available for your new SRM or BMR.
- Allows TruFi to facilitate the "Sell and Finance Back" transition seamlessly.
No Home Ownership Risk
A. RWA Property Claim
Submitting PoW for a property claim is a non-lending event. Because you are not borrowing money, there is no risk of losing your home to a lender.
- No Debt: You are not taking out a loan; you are simply "claiming" the value of an asset you already own.
- No Liens: Peoples Reserve does not record a lien against your property during a standard RWA claim.
- Full Control: You retain the deed and full legal title at all times.
B. Property Refinance
Refinancing through Peoples Reserve is designed to eliminate the standard risks associated with traditional banking, specifically liquidation risk.
- No Margin Calls: Unlike traditional crypto loans, your Refinance (SRM/BMR) is protected by the property title itself, meaning market volatility won't result in a forced sale.
- Bankruptcy Remote: Your collateral is held in a protected SPV (Special Purpose Vehicle), ensuring it is shielded from outside claims.
- Institutional Custody: Your digital collateral is secured by BitGo, an industry-leading qualified custodian.
What Documents Are Used
To complete Proof of Ownership, you must provide official documents that demonstrate legal ownership and current status:
- Recorded Property Deed: Must clearly show your name as the legal title holder.
- Homeowners Insurance Declaration: To verify the property is currently protected.
- Recent Mortgage Statement: (Refinance only) To establish the current balance to be paid off by TruFi.