# Asset valuation

<details>

<summary>How is valuation stored within the property token smart contract?</summary>

Within each property token contract, 2 values are possibly stored:

1. property valuation, and
2. token valuation.

#### Example

A property is valued at 1M USD and 50% has been tokenized and sold to investors for 10$ per token in a primary offering.

After the offering is completed, the 50,000 BSPT tokens are held across 100 token holder accounts. After some time, holders of these tokens can start trading them on the secondary market where they can resell these tokens for their desired price.

If one token sells for 11$, one could assume the valuation should now be 1.1M USD, however, it does not mean that every one of the 50,000 issued tokens would actually sell for the price of 11$, right?

This means that the "token value" not necessarily correlates with the "property value", but we can use price points together with trade volumes and capital stack structure to generate an overall valuation that takes into consideration both the traditional "property valuation" as well as the more volatile and less understood "token valuation", creating a live price feed for the tokenized property.

</details>


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