NEW CLASS OF LOW-RISK FUTURE-PROOF TOKENS
Smartlands platform is designed to create a new class of low-risk future-proof tokens, secured by real, profitable assets in agriculture and establish an appropriate infrastructure for ICOs of such tokens that protects investors from major part of risks
Smartlands Platform is a crucial element of the token market infrastructure and performs the major part of tokenization of agricultural assets in the most efficient and transparent way, creating significant value for the crypto community. Positive impact on the world economy, due to increased food security and sustainability of agriculture.
PROTECTION OF INVESTORS
Protection of investors of agricultural asset backed tokens issued on Smartlands Platform will be based on relevant legal structure with collateralization of assets, legal due diligence, highly automated agricultural audits and distributed governance secured with blockchain technology.
TOKENIZATION OF AGRICULTURAL ASSETS
Tokenization of agricultural assets is a great idea given the following. Land and other assets (e.g. trees of an orchard or plantation) are very suitable to being a collateral (long-term assets with value that does not depend much on who manages it). There is a lack of financing for introduction of innovations in agriculture worldwide that provides an opportunity to earn high returns on investments. Innovative monitoring solutions for agriculture that will be introduced by the Platform provides for accountability and high level of transparency.
VALUE CREATION FOR INVESTORS AND AGRICULTURAL COMPANIES
New class of low-risk tokens will create value for cryptoinvestors as it will improve the whole efficient frontier, meaning that for the same amount of risk taken, investor will have higher returns.
The Platform will eliminate and alleviate risks for investors thus decrease required rate of return for investments/projects. Lower cost of capital for agricultural companies will allow to introduce more projects creating extra added value and result in higher economic value added (EVA) of projects that would be introduced even at higher cost of capital.
The rules of the Platform will be set by the cryptoinvestment communityof SLT tokenholders through distributed governance implemented with blockchain technology. The same relates to the ability of the ABT holders to make decisions with voting that differ ABTs from asset-backed securities (ABS).
HOW IT WORKS
1.An agricultural company approaches Platform to get its assets tokenized and raise the investments.
Smartlands Platform manages the process of verification and auditing of the company. The agricultural company pays the fee for the services provided.
2. The agricultural company and an escrow company enter a collateral agreement for the assets.
3. The Platform provides a standardized offer to potential investors. Investors buy tokens of the agricultural company providing investments for development of the company.
Platform lists the issued tokens on the partner cryptocurrency exchanges to enhance token liquidity.
4. ABT investors buy the required amount of SLTs from holders at the current price.
5. Agricultural companies share the revenue and profit with ABT holders.
Revenues for the Platform will be obtained from the comprehensive ICO services provided to agricultural companies, as well as services for an ongoing monitoring, other services provided to investors.
BENEFITS FOR SLT TOKENHOLDERS
Given that the Platform is a non-profit organization, investors will benefit from SLT token price appreciation, but not the profit of the Platform itself. Profit of the Platform will be reinvested to improve existing services and expand to new markets, resulting in increase in demand for SLT tokens.
The Platform’s rules and smart-contracts are designed to create an increasing demand for SLT, and consequently persistent token price growth. Investors will automatically purchase some specified amount of the Platform’s tokens (SLT) from their holders while buying agricultural company asset-backed tokens (ABT). The total volume of SLT, which should be purchased by ABT holders issued on the Platform, will be proportional to the value of all ABTs, thus increase in the amount of ABT issues and ABT price will increase the demand and value for SLT.
In addition, an ongoing demand for SLT tokens will be created by the following rules. Investors will have to buy SLT to get detailed info on investment opportunities, while agricompanies will have to pay for the Platform’s services in SLT.
1.125 000 000 SLT or 50% of the total amount will be sold to participants of the crowdsale. This amount includes tokens available during both pre-sale and main sale.
2. 50 000 000 SLT or 20% of the total amount will be issued to develop the Platform and incentivize key stakeholders, promote the Platform and reward early adapters. Subject to lock down periods
3. 50 000 000 SLT or 20% of the total amount will be provided to the company that creates the platform. Subject to lock down periods of up to 3 years.
4. 25 000 000 SLT or 10% of the total amount will be provided to the Team as incentivization and to cover crowdsale preparation expenses. Subject to lockdown periods
SMARTLANDS INDEX TOKENS
We expect Smartlands Platform’s ABTs to become popular safe haven assets for crypto investors. Major part of the investors are not specialists in Agriculture, so it will be quite difficult for them to pick specific ABTs efficiently. Therefore, the index token is optimal way to make a low-risk investment or get exposure to agricultural assets without expertise in the field. Index tokens are diversified by default, thus, failure of one or two companies will not have a significant impact on them.
Once the number of ABTs of agricultural companies issued on the Platform will reach five, the Platform will construct the index encompassing all the Platform’s agricultural ABTs. After the issue of 10 ABTs on the Platform, an index token will be issued. Proceeds of sales of the token will be used to buy ABTs proportional to the composition of the index. Such index token will make the Smartlands index of agricultural ABT investable providing an opportunity to buy all the issued agricultural ABT tokens with one action.
SMARTLANDS PLATFORM GENERAL STRUCTURE DIAGRAM