# How is token appreciation determined over time? Tokens update in value on a monthly basis starting 1 month after the property sale is recorded on the MLS. The amount a token appreciates or depreciates is determined by using the HouseCanary Automated Valuation Model (AVM). HouseCanary is the largest property valuation company and is used by the majority of single family hedge funds like Invitation Homes and Amherst Holdings. To determine the valuation of a property over time, we take the rate-of-change of the HouseCanary AVM of the property on a monthly basis, then apply that same rate-of-change to the principal value of your tokens on a monthly basis. For example, if HouseCanary’s valuation of your property is $100,000 and then one month later it’s $105,000 – your tokens would increase from $50 each to $52.50 each (a 5% increase). The HouseCanary valuation is updated once per month between the 28th-7th, which is when the principal value of your tokens will update as well. Every time the value of your tokens updates, there will be a report from HouseCanary attached which walks through exactly how their valuation was calculated. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://lofty-2.gitbook.io/faqs/faq/how-is-token-appreciation-determined-over-time.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.