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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