New Grain Exchange Token Is a Food Chain Game Changer
July 22 2024 - 12:42PM
Business Wire
Dominion Blockchain, a company based in Canada’s agricultural
heartland, plans to introduce the Grain Exchange (GRNX) token later
this year. The token is unique because it is the first token to be
backed by grain - a real world asset, which makes it inherently
stable.
The Grain Exchange token is the final component to be added to
the Grain Intelligence system, which provides farmers with an
easier way to understand their grain inventory quantity and quality
and get the most for it. The use of the token is enabled by the
Grain Intelligence system’s ability to track key grain related data
from the field to the processor to provide accurate, transparent,
trusted information, with full traceability. The data also provides
opportunities for additional revenue via carbon credits, and
regenerative and sustainability initiatives.
Grain buyers also benefit from the new token, as it provides a
lower cost source of inventory financing, a cost which has seen
interest rates triple over the last few years.
In June, a pilot was completed which saw a farmer in Canada
deliver the first-ever load of canola which had all the related
data tracked from the field to the delivery point. The farmer
received a digital payment for the grain and the first-ever credit
for their data. The buyer received inventory financing at a rate
33% less than their financial institution.
“The Grain Intelligence system and Grain Exchange token are a
game changer for food chain,” says Jason Dearborn, CEO of Dominion
Blockchain. “It allows farmers and buyers anywhere in the world to
easily interact to find optimal utilization and value for the
grain, and the token streamlines and assures immediate digital
payment. The ultimate result is that a greater quantity and quality
of food reach the consumer.”
The Honourable Grant Devine, past Premier and Minister of
Agriculture of Saskatchewan, and Agriculture Hall of Fame award
recipient commented, “In my research as an agricultural economist,
real time price and quality information allows markets to function
much more efficiently. Accurate, real time commodity data benefits
both sellers and buyers simultaneously. The Canadian grain market
is in for an historic boost with this new technology.”
The Honourable Gerry Ritz, past Canadian Minister of Agriculture
added, "Using a farm input data capture on a blockchain is an
exciting addition to marketing freedom, adding a premium to every
bushel brought to market through the Grain Intelligence
system."
The Grain Exchange token is being developed through a joint
venture between LandX and Dominion Blockchain. Both companies have
deep roots in the blockchain and DeFi space, with LandX having
established a token backed by farm land. Dominion has a shareholder
base of over 150 farmers in Canada, farming in excess of 1.5
million acres and interact with over 10,000 growers. The Grain
Intelligence partner companies have interaction with over 12,000
farmers.
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Ken Jackson kjackson@dombit.ca