Agro-commodities

Subtype

Definition: Crypto-assets backed by physical agricultural products with verified environmental sourcing.

Description

These tokens represent literal commodities such as coffee, cacao, or grains sourced from regenerative or sustainable producers. Tokenization supports traceability and efficient settlement.

Example

LandX is a real-world asset protocol that tokenizes the future yields of agro-commodities such as soy, corn, rice, and wheat, enabling decentralized exposure to agricultural production. Through its xToken model, LandX allows farmers to receive upfront capital by committing a portion of their crop yields, which are secured via legal agreements and liens on the land. These commitments are tokenized into fully backed ERC-20 xTokens (e.g., xWHEAT, xSOY), which, when staked, generate cTokens representing the annual commodity yield. The ecological dimension emerges through the protocol’s long-term engagement with land-based agricultural systems and its potential to reward regenerative or climate-resilient farming practices via yield-linked incentives.

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