Tokenization and Fractionalization of Farm Investment

fTokens are used to Fractionalized Farming Investments.

Africa is a continent with a predominant existence of Semi-Arid and rainforest land. These regions are fertile for farming as most farmers cultivate cash and consumer Crops. We understand that most farmers here lack funding to process the food products from planting to harvest. Thinking of a way we can use blockchain to create a Decentralized Farm investment and crowdfunding platform. We offered a Blockchain-Powered solution:

• xFRAC computes the cost of raising the cash or consumer crop in the farm from planting season to sales.

• A business deal of equal stake in the proceeds from the farm after sales with a Farm investor is offered to the Farmer.

• The Agreement is signed and stamped by the necessary legal authorities. The Farm Investment agreement is tokenized as a FARM NFT and sold on the Farm Investment Marketplace.

• Farm Investors buy the NFT to receive 50% of the proceeds from the farm. The farmer will receive funding in milestones, and xFRAC will supervise the entire process and provide feedback to the Farm Investor.

• After sales of the Crops, the proceeds are split between both parties equally.

• FARM NFTs can be fractionalized to fTokens (a derivative of rTokens) to distribute cost and ownership among users. Both FARM NFTs and fTokens are tradable on the Marketplace.

• All FARM NFTs issuers have a tfburnable transaction flag, and fToken issuers have a Token Clawback function set. Upon FARM NFT maturity, the NFT issuer burns the FARM NFT and sends the Farm Investment proceeds to the Farm Investor. For fToken investors, xFRAC takes a snapshot of fToken holder wallets, and the fToken issuer clawbacks all fTokens in circulation and distributes the Farm Investment proceeds among its holders after.