Token model for Confidence D’Abeilles
Thanks to Blockchains and smart contracts, ownership can finally be safely transferred between two entities without a third trusted party in between.
This technology allows the transfer of any assets by tokenization. Therefore micro-ownership is secured, instant, and automated. Thanks to the tokenization, anyone from anywhere can buy any share% of any valuable asset (Ex: a house, a land, a collection car, a piece of art, etc…) The aim of this document is to create a Minimum Viable Token Model. This would allows to determine whether or not raising funding through the mean of an Initial Coin Offering (ICO) is a strategy to adopt for the most famous French honey producer.
WePower as an example
WePower is a Platform enabling renewable energy producer to raise capital by issuing their own energy token. These tokens represent energy that is committed to be produced in the future. As a result, energy producers can trade directly with energy buyers and raise capital by selling energy upfront. The WPR token is shaped to grow together with Wepower business. It stores tangible value and insure liquidity.
Every renewable energy producer using WePower, donates part of the produced energy to the WPR token holders constantly accrue this energy. Tokens accumulate real value in the energy form. The WPR token holders can use this energy for their own use or sell it to someone else on the platform at any time. The WePower token model is structured as a reward based crowdfunding, where contributors are rewarded free energy which they may use or sell on the platform. Wepower created 2 tokens: NRJ token & WPR tokens
For example:
A renewable energy producer is bulding 100MW solar energy capacity plants in spain. The cost of such a project is estimated to 100M€. The producer lacks 20M€ to bring the project to life. Using WePower, the producer tokenizes the projected production of energy of 20M€ and seels it upfront. To incentivize buyers, the producer is always selling its energy below market price which they can use for themselves or sell on the marketplace.
How Confidence D’Abeilles can be tokenized?
Hives are like flat they correspond to a real-world asset on the blockchain
But contrary as a flat, they are more likely to be inflationary with time as industry machines, more its used less valuable it becomes.
If the production of honey legally needs to be put on the blockchain, then an IoT device will be required to measure, control and record the production of each hives on the blockchain.
(to check: How the tokenized real estate companies are doing? How are they collecting the rent transactions? is it recorded on the blockchain? Ex: Rentberry.com)
If the production don’t legally need to be put on the blockchain, then in order for investors to be appealed by investing in the tokens, it would be to collect a part of its production that you can determine its quantity.
TOKEN : “CDA” CONFIDENCE D’ABEILLES
Confidence d’abeilles create tokens (Like a bank, out of thin air, magical internet money of ICO)
Creation of: 15.000.000 CDA (Limited fixed amount like bitcoin no more than that)
1 CDA: 0.10€
Total amount to raise: 0.10€ x 15.000.000 CDA = 1.500.000€
Yearly average Production / hive = 20KG
Selling price per KG = 30€
Yearly honey production = 10.000KG
Yearly Revenu = 30€ x 10.000 = 300.000€
For example:
20% of the yearly production (20KG) x Price/KG (30€) is redistributed to people who bought and still have their CDA token in their wallet (a form of I owe you)
So what are the motivations/incentives for them to even buy a CDA token?
In that case, by owning CDA tokens they receive yearly part of the revenu proportionally to how much tokens they hold.
Concern 1 : As hives are like machine the price of 1 CDA will be decreasing with time.
In order to increase the price of the CDA, a solution would be to ensure to the token holders than a part of the company’s revenue will be reinvested in NEW hives (EX: 10% of revenue allocated to buying more hives)
This will allow the CDA token to increase in price every year.
Concerns 2 : Is it possible to base yearly revenue on the blockchain? (if not, then see production below)
In the case of impossibility to put the revenu on the blockchain, an alternative solution would be to create a 2nd token based on the yearly production. Let’s call this token: CDAKG (Kilograms)
The CDAKG token has to have a fixed price per Kilo
Let’s say:
1 KG = 30€
1 KG = 100 CDAKG
1 CDAKG = 0.30€
Example Year 1:
Production in KG= 10.000KG
Value= 30€ x 10.000KG = 300.000€ (Revenue)
10.000 X 100 CDAKG =1.000.000 CDAKG (yes out of thin air like banks and money)
10% reinvested into new hives = 100.000 CDAKG to reinvested in new hives (30.000€)
20% redistributed to CDA token holder = 200.000 CDAKG to redistribute to token holders (60.000€)
Explanation:
The company create 1.000.000 CDAKG based on the annual production of honey (10.000KG)
The value of those 1.000.000 CDAKG is 300.000€:
10% (100.000 CDAKG are reinvested in new hives to produce more) so 900.000 CDAKG are left.(Value of 270.000€).
20% is allocated to the CDA token holders ( Which means that the company has to send 200.000 CDAKG to the token Holders. It means that they receive those token in their wallet.
People receiving CDAKG tokens can decide to:
Sell them back to you for 0.30€/CDAKG
Buy honey and other of your products
Exchange their CDAKG to CDA tokens (as the CDA token increase in price because holder of CDA tokens get more CDAKG as10% of the total production is used to buy more hives, then produce more, to buy more hives and so on)
Question: Can we ensure to allocate a fixed percentage (10%) each year?