Smartlands is a blockchain platform that tokenizes agricultural assets. Find out how it works today in our review.
What is Smartlands?
Blockchain technology has allowed us to tokenize virtually anything – so why wouldn’t we tokenize agricultural assets? That’s exactly what Smartlands plans to do. The blockchain platforms aims to boost development for all kinds and sizes of farms worldwide by placing agricultural assets on the blockchain.
The crowdsale for Smartlands tokens, or SLTs, takes place throughout October and November, with a pre-sale beginning on September 27 and a crowdsale beginning on October 25.
SLTs are tokens for the Smartlands platform. However, Smartlands will allow agricultural companies to launch their own tokens through an ICO. An agricultural company can participate in a digital currency crowdsale by selling tokens representing a share of its assets.
How Does Smartlands Work?
Smartlands describes itself as the first worldwide platform for the tokenization of agricultural assets. The platform will analyze agricultural companies before adding them to the platform. Here’s a basic overview of the process:
Step 1) Analysis of Agricultural Companies:
Smartlands will check farmland and other assets held by the agricultural company. They’ll perform a legal audit, a business audit, and an agricultural audit.
Step 2) Select the Most Optimal Jurisdiction:
Smartlands will find a market for that company’s agricultural products, and “select the most optimal jurisdiction” based on that company’s asset portfolio.
Step 3) Smartlands will create a smart contract:
A collateral agreement is signed between an agricultural company and escrow companies. The agreement is governed by the smart contract.
Step 4) ICO Campaign:
Smartlands will sell tokens for the agricultural company or its assets. These are called asset-backed tokens, or ABTs. Users can purchase tokens for an agricultural company to effectively invest in that agricultural company.
Overall, Smartlands wants to even the playing field among agricultural companies. It wants to allow any agricultural company – small or large – to successfully compete. It aims to boost efficiency across the industry. They’re calling their technology part of the Agriculture 3.0 revolution.
Some of the core features of the Smartlands platform include all of the following roles:
- Development of smart contracts, allowing tokens to be placed on the platform with optimal logic for each type of ABT, including all necessary functionality written into the smart contract in the form of a legal agreement
- Software development that provides a convenient way to obtain all necessary information for the decision making of each of the parties, including the owner of the asset and the investor, including automation solutions
- Defining rules for legal structures of each ABT; these rules are designed to protect the interests of investors and minimize any legal risks, ensuring the mandatory implementation of any decisions made by token holders
- Setting up rules of technical inspection of assets before and after any tokenization to ensure the agricultural company remains transparent and honest about its assets
- Monitoring of token dynamics, identification and prevention of negative events, and illegal actions against token holders
- Advising in solving problems and conflicts, including the establishment of an arbitration chamber that resolves conflicts in the event of the request and consent of both parties (both parties need to consent to being bound by the rules)
- Introduction of new types of asset backed tokens, or ABTs
- Marketing ABTs and the Smartlands platform overall
- Entering into partnerships and cooperation agreements with state bodies responsible for regulating the securities market to explain the benefits of asset tokenization
Types of ABTs Available with Smartlands
The Smartlands whitepaper identifies three main types of tokens that will be implemented on the platform, including:
ABTs of Companies:
These ABTs are tokens of individual agricultural companies that have conducted an ICO on the Smartlands platform. These companies need to go through an examination process according to the rules of the platform. Key agricultural assets will be transferred as collateral for special escrow services, allowing companies to access funds while minimizing risk on all sides.
ABTs of Funds:
These are tokens that represent an investment fund in an agricultural company. With these ABTs, profits from the agricultural company are distributed to token holders, minus the fund management premium and expenses.
ABTs of a Group of Assets:
ABTs can also represent a group of assets. With these types of ABTs, token holders are entitled to a share of revenue and profits from the sales of assets in a certain segment – for example, all walnut production companies. These ABTs will be created by the Smartlands platform as a basket of funds. This allows investors to invest in entire agricultural sectors.
Who’s Behind Smartlands?
Smartlands is led by CTO Victor Yermak, and Managing Partner of Agricultural Operations Taras Basistyk-Gaptar. The company appears to be based in Sofia, Bulgaria.
Smartlands doesn’t appear to have any product or platform available to the public today. The first “stop” on their roadmap is in Q1 2018, which is when they plan to tokenize fruit, berry, and nut orchards in Central and Eastern Europe by performing ABT ICOs for these companies. By Q3 2018, they hope to tokenize all types of agricultural assets related to arable farming in markets like Europe, Southeast Asia, and South America. During Q3, Smartlands will also launch its own blockchain.
The Smartlands Token Sale
There’s a limited supply of 250,000,000 SLTs. 1 SLT = 0.001 ETH.
The company is expecting to raise a minimum of 10,000 ETH and a maximum of 100,000 ETH (with an expected average of 50,000 ETH).
50% of the total supply of tokens will be sold to participants through the crowdsale. 20% will be reserved for platform development and stakeholder incentives. 20% will be reserved for the company that creates the blockchain platform. And 10% will be reserved for the team as an incentive, and to cover crowdsale costs.
SLTs are ERC20-compliant tokens built on the Ethereum blockchain.
The token pre-sale begins on September 28, with a general crowdsale scheduled for October 28.
Conclusion On Smartlands
Smartlands is a blockchain-based platform that aims to tokenize agricultural assets. It wants to help agricultural companies embrace the benefits of crowdfunding systems like ICOs. Using Smartlands, agricultural companies can raise capital that can be used for future development.
Right now, Smartlands doesn’t have a blockchain in place. The company is starting with an ICO, and will then tokenize agricultural assets beginning in Q2 2018. By mid-2018, the company hopes to have a blockchain platform ready for the public.
The Smartlands token sale is ongoing throughout September, October, and November, with a pre-sale beginning on September 27 and a crowdsale opening on October 25.