← 86 Madison Ave, Albany, NY 12202 · All properties

2026-07-14 - ECO Debt Conversion or EARLDAO Loan Proposal - 86 Madison Ave, Albany, NY 12202.md

This page is a searchable text preview. Use the Dropbox link for the full original file.

Open full file in Dropbox

What This File Appears To Be

86 Madison Ave DAO Governance Proposal - ECO Debt Conversion or Official EARLDAO Loan **Property:** 86 Madison Ave, Albany, NY 12202 **Lofty asset:** LFTY0439 / ASA 2565836556 **Calculation date:** July 14, 2026 **Status:** Draft for property-DAO review and ranked-choice vote ## Purpose Resolve the reconciled amount owed to ECO Systems LLC, replace the informal deficit with either dilutive Lofty equity owned by ECO or a documented EARLDAO loan, and permit yield distributions to resume after th

Text Preview

# 86 Madison Ave DAO Governance Proposal - ECO Debt Conversion or Official EARLDAO Loan

**Property:** 86 Madison Ave, Albany, NY 12202  
**Lofty asset:** LFTY0439 / ASA 2565836556  
**Calculation date:** July 14, 2026  
**Status:** Draft for property-DAO review and ranked-choice vote

## Purpose

Resolve the reconciled amount owed to ECO Systems LLC, replace the informal deficit with either dilutive Lofty equity owned by ECO or a documented EARLDAO loan, and permit yield distributions to resume after the selected settlement is executed and current property obligations are funded.

## Reconciled Position

| Metric | Amount / Value |
|---|---:|
| Reconciliation cutoff | 2026-07-14 |
| Accounting ECO principal; no approved interest | $8,298.17 |
| Cumulative hypothetical 12% daily interest | $468.53 |
| Hypothetical interest already absorbed by interim cash | $468.53 |
| Currently unpaid hypothetical interest | $0.00 |
| Interest-included settlement amount | $8,766.70 |
| Principal-only shares at $50 | 165.9634 |
| Interest-included shares at $50 | 175.3340 |
| Interest-included post-issuance ECO ownership | 2.3265% |
| Whole-share ceiling, if required | 176 shares / $8,800.00 |
| Whole-share rounding excess | $33.30 |

The established accounting principal is $8,298.17. The additional $468.53 is a hypothetical 12% simple daily carrying charge, not an approved liability. It is shown separately so voters can decide whether retroactive interest should be included.

The dilution percentage uses 7,361 total tokens from the Lofty metadata snapshot updated 2026-06-13. The cap table must be refreshed immediately before issuance. Fractional shares are preferred; if the platform requires whole shares, any rounding excess must be booked as ECO contributed capital or otherwise expressly documented.

## Common Accounting Basis

- Completed months January through June 2026 close to $0.00 in ECO GL Column E.
- Profit first repays ECO principal and then builds retained earnings.
- Loss first consumes retained earnings; only the uncovered deficit becomes ECO principal.
- Inter-account transfers are cleared separately and are not treated as property income or expense.
- July 2026 remains in progress; the execution amount must be refreshed through the actual closing date.

## Ranked-Choice Options

### Option A - Principal-Only Equity to ECO

- Issue 165.9634 LFTY0439 shares to ECO Systems LLC at $50.00 par, settling $8,298.17.
- Reject retroactive interest.
- Approximate post-issuance ECO ownership from this issuance: 2.2049%.
- Resume eligible yield distributions after the issuance and cap-table update are complete.

### Option B - Interest-Included Equity to ECO

- Issue 175.3340 LFTY0439 shares to ECO Systems LLC at $50.00 par, settling $8,766.70 through July 14, 2026.
- Approve the disclosed $468.53 retroactive 12% carrying charge.
- Approximate post-issuance ECO ownership from this issuance: 2.3265%.
- Resume eligible yield distributions after the issuance and cap-table update are complete.

### Option C - Make an EARLDAO Loan Official

- Request a separate EARLDAO lender approval and documented loan that pays ECO Systems LLC at closing.
- Initial principal is $8,298.17; retroactive interest may be added only if expressly selected by this vote, up to $8,766.70 as of July 14, 2026.
- Prospective terms: 12% simple interest, daily accrual, no compounding, 36-month maturity, no prepayment penalty, and monthly reporting.
- Property cash first funds current operations, the approved reserve, and scheduled debt service; remaining distributable cash may be paid as yield.
- No equity is issued under this option.

### Option D - Remand / Keep Yield Paused

- Do not convert or refinance yet; require a revised amount or terms and keep distributions paused.

### Option E - Abstain

## Execution Authorization

- Authorize ECO Systems LLC and Lofty AI, Inc. to refresh the ledger and cap table through closing, prepare issuance or payoff records, and update investor reporting.
- Cap any equity issuance at the voted economic amount divided by $50.00, subject only to disclosed closing-date interest if the interest-bearing option wins.
- Require a matching EARLDAO lender vote before Option C becomes effective.
- Do not characterize accounting-only Baselane entries as bank transfers; actual cash moves only if EARLDAO funds the payoff.

## Evidence and Limitations

- Governance evidence reviewed: Madison shed vote application 3491451332.
- Supporting monthly detail appears in the `2026 Capital Reconciliation` tab of the property Cash Flow Statement.
- This proposal supersedes prior drafts to the extent their deficit amounts or counterparties conflict with this reconciliation.
- Passing the vote does not itself mint shares, execute a promissory note, or move cash; those actions require documented closing records.