Token related FAQs

We've collected some questions that we thought you might have. However, if you still have questions unanswered, don't hesitate to reach out to us at

Why should investors invest in Bustad Coin instead of a traditional real estate fund?

If an investor is looking for high returns in real estate, they should invest in a fund and not in Bustad. Real estate funds (and stocks) are highly leveraged and priced on estimated revenue (P/E), not the actual property value. Funds bring higher potential returns but also significantly higher risks. Bustad has no leverage and is priced on the market value of the portfolio of properties. Being a cryptocurrency, it is also far easier to enter and exit than a fund that might have years until exit. The goal of Bustad would be to reflect the property market’s growth, while there are some mechanisms for reducing the downside. These are:

  • Properties are purchased off-market at a discounted market price using third-party assessment services. (Bustad will offer homeowners a slightly reduced price as Bustad only buys a fraction of the property, does not charge rent, the transaction is not on the open market, and the homeowner can repurchase the fraction at any time. Technically, this is done with Bustad asking for a slightly larger share of ownership. For example, if you use Bustad to reduce NOK 500k from your debt, Bustad might ask for NOK 550k ownership in your home based on estimated open-market value. This is your starting point for repurchasing the share.)

  • The open-market price is the lowest threshold for homeowner to repurchase. This provides downside protection for the Bustad coin.

  • There are fees in specific scenarios, like if the homeowner choses to sell their share of the home without buying back from Bustad, which accrues to the value of Bustad. The new homeowner is obligated to adhere to the original agreement with Bustad.

How are Bustad coin and the selling of property connected?

When a user mints Bustad coins, the minter receives the coins, while Bustad Eiendom AS receives either Ether, USDC or DAI. The cryptocurrency received is converted into fiat, and attractive properties can be purchased. (If you are interested in selling parts of your property, you can sign up for our waiting list.) The purchase triggers updates to the electronic cadastre of Norway and the Ethereum blockchain.

Another process that can occur is if a homeowner intends to buy back their property. The homeowner can buy back the fraction from Bustad at any time. The repurchase price is the original estimated open-market price, corrected for the average price increase in the area. The repurchase price can never be lower than the estimated open-market price when Bustad first purchased the fraction. If the fraction is sold, Bustad Eiendom AS receives fiat that can be used to purchase a new property or react upon other opportunities concerning Treasury optimization.

What about the tokenomics of the Bustad coin and the Eigar token?

The Bustad ecosystem consists of the real estate collateralized Bustad coin (BUSC) and the corresponding governance token, the Eigar token (EIG).

The Bustad coins (BUSC) are minted (created) via an Ethereum smart contract and a non-custodial wallet. The collateral is sent to the Bustad multi-sig wallet, while the Bustad coin is paid to the non-custodial wallet.

The Eigar token (EIG) is designed to give its holders a voice in the Bustad Association, which administrates and controls the Bustad Eiendom AS. 100.000.000 EIG have been pre-mined, with 52% committed to the community via different kinds of campaigns such as the token minter program or the Liquidity Provider Reward program. Horde AS has received 25%, providing much of the infrastructure through a service-level agreement. The remaining 25% is determined for the team and the partners.

Currently, minters receive EIG at 1:1 ratio for each BUSC minted. This relationship will be halved at certain intervals which will be announced by Bustad.

Why has the Bustad coin no peg to the collateral value?

Many (crypto-)currencies (e.g., DKK, USDT) maintain a peg to a reference asset (e.g., USD, EUR) to prevent changes in exchange rates. The purpose of a peg is to provide price stability and reduce price uncertainties. That sounds awesome in theory, but it has a hefty price tag in practice.

Stablecoin charts show that peg tolerances inflate on days with higher volatility, causing uncertainty, something pegs were invented to eliminate.

If Bustad maintained a conventional peg towards its collateral value, a large portion of its collateral would be required to be liquid. In Bustad's Treasury, other US dollar-pegged stablecoins would be held to tackle all market volatility.

Consequently, Bustad would:

  • lose much of its inflation hedge of property assets. (Selling properties takes more time.)

  • Solid low-risk collateral would be replaced by higher-risk collateral (e.g., counterparty risks).

  • Bustad would end up supporting shady (offshore) entities.

We also looked at algorithmic stablecoin functions. However, their price uncertainty seems even higher as they require a support level of demand to operate and are highly dependent on the willingness of arbitrageurs to participate. High incentives might motivate arbitrageurs in most situations. Still, since there is no obligation, most algorithmic stablecoins experienced sooner or later death spirals, such as Terra, Iron Finance, Empty Set Dollar, Basis Cash, SafeCoin, BitUSD, DigitalDollar, NuBits, CK USD, etc.

The Bustad team believes that these factors will equilibrate and protect the Bustad coin from exuberant volatility:

  1. Full transparency: Information about the Bustad collateral, the treasury, the property, and fiat holdings shall be fully on-chain and auditable. Since there is no informational asymmetry (as seen for centralized stablecoins), this incentive will do the necessary in ordinary markets for the price to move around their collateral value. We encourage all market participants to arbitrage overhanging supply and to compare the value of the Bustad holding with the actual price. In the future, centralized exchanges (CEX) might also list the Bustad coin and its corresponding governance token, Eigar.

  2. The Bustad Treasury serves as the market maker of last resort. However, since there is no obligation, it will not be done in a harmful way and will eventually protect Bustad from risks connected with market inefficiencies.

  3. We will increase the utility of the Bustad coin and give it additional purposes in decentralized finance. The liquidity pools are the first step in the yet-to-come ecosystem.

What’s the price of Bustad Coin?

Initially, the exchange rate for 1 Bustad Coin was 1 USD. However, since the Treasury held a more significant portion of Ether that appreciated, we recognized on Dune Analytics that the collateral value was $1,10 per Bustad coin. We found it unfair that people could mint for a price under market value and decided to link the minting price to the portfolio value per Bustad coin.

Where can I find the charts for Bustad coin and Eigar token?
Where can I see best the collateral value and some onchain data?

There are in total three reports on Dune Analytics that tracks the onchain data of the Bustad ecosystem.

  1. Onchain data about the Bustad coin, the collateral (assets in Bustad treasury), and some queries around the minting activity here:

  2. Onchain data about the Eigar token such as the number of holding addresses and the overview over the largest holders. Additional queries will be added with increased importance. Link:

  3. Onchain data about the real estate holdings. Please note: as long as there is no property accumulated the report will show the demo version only. Link:

How can I earn fees with my Bustad coins or my Eigar tokens?

You can send Bustad coin and Eigar tokens to the liquidity pool (smart contract) from the Uniswap version 3 protocol.

Where can I buy or sell my Bustad coins or Eigar tokens?

You can do this on the Uniswap version 3 protocol here: Initially, the tokens are not popping up unless you paste the contract addresses into the search field:

  1. For BUSC ==> 0xeE31e8597D972Cfd136042719BDbC8b24020f0D0

  2. For EIG ==> 0x3505Aa51FE556c6E7eda81aA8F300e34969b79D4

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