TLDR
- A Colorado church group is tokenizing its $2.5 million chapel to raise funds for purchase
- The project is led by Pastor Blake Bush, who says he was inspired by God to use blockchain
- They created “Stone Coin” tokens on the Polymesh blockchain through REtokens
- The initial offering targets accredited investors, with plans to open to congregants later
- This may be the first tokenized church building in the world
A network of churches in Northern Colorado is turning to blockchain technology in an innovative attempt to purchase their rented place of worship.
The Colorado House of Prayer, led by Pastor Blake Bush, has launched a tokenization project to raise $2.5 million for the acquisition of the Old Stone Church in downtown Fort Collins.
The historic 19th-century stone building, which the group has been renting for the past two years, is currently owned by Warren Yoder, a local businessman who purchased it in 2022 for $2.2 million. Bush’s organization now aims to buy the 11,457-square-foot structure using a method rarely seen in religious circles: cryptocurrency tokens.
“I heard the Lord say ‘tokenize the building,’” Bush told Forbes, explaining his inspiration for the project. “I’ve been praying for this for years, and God said, ‘Son, go get my house.’”
To accomplish this goal, the Colorado House of Prayer partnered with REtokens, a Spokane, Washington-based company specializing in real estate tokenization. Together, they created “Stone Coin,” a digital asset running on the Polymesh blockchain, a platform designed for tokenized securities.
The initial phase of the offering, launched recently, targets accredited investors with a minimum investment of $50,000. The project aims to raise the full $2.5 million within its first year. Future plans include opening token sales to non-accredited investors, including church congregants, at $500 per token with a $1,500 minimum investment.
Unlike traditional church fundraising, which often involves tax-deductible donations, this tokenization project is structured as an investment. Token holders will be subject to normal income and capital gains taxes, receiving K-1 partnership distributions.
The project’s pitch deck projects
“a 2-3% yearly increase on each token in accordance with the rise in real estate value in downtown Fort Collins,” plus a small dividend based on rent received by the LLC. However, Bush emphasizes that profit should not be the primary motivation for investors. “You’re not in this to make profits. You’re in this to do good in the community,” he stated.
Governance of the Old Stone Church will be managed by a board, which includes Bush, other religious leaders, and local officials such as the mayor of nearby Severance, Colorado. Token holders will have limited voting rights, including electing the board president and voting on potential sale of the building.
This tokenization project comes at a time when many churches across the United States are facing financial challenges. Mark Elsdon, a minister and developer, estimates that up to 100,000 Christian church properties could be sold or repurposed in the next decade.
While the Old Stone Church tokenization may be a first for religious buildings, it’s part of a growing trend of real estate tokenization. REtokens and Polymesh recently announced plans to jointly tokenize $30 million in real estate assets.
The Colorado House of Prayer describes itself as a network of churches working together, rather than a single denomination. The Old Stone Church currently hosts multiple religious groups, including a Korean congregation that holds weekly services.
As the project moves forward, it faces both opportunities and challenges. While tokenization could provide a new funding model for religious organizations, it also introduces complexities around securities regulations and investor expectations.
Bush remains optimistic about the project’s potential. He envisions forming a foundation to help other groups tokenize their historic buildings, seeing a possible convergence of blockchain technology and religious community funding.
As of the latest reports, the Colorado House of Prayer has raised approximately half of its $2.5 million goal for the Old Stone Church purchase.
The post Colorado Church Group Tokenizes Chapel for $2.5 Million Purchase appeared first on Blockonomi.
from Blockonomi https://ift.tt/GPMVmEf