KNL tokenization platform is the digitization of grain assets, real estate and property


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INTRODUCTION

The very first business man was recorded to have taken part in is agriculture. It's is a practice as old as man and thus man has perfected the art. On analysis carried out by the UN, from the year 2000 to 2016 agricultural exchange commodities has increased three times its original status: it raised from about $570 bn to $1.6trillion. The larger fraction of this is contributed by developing countries due to the fact that they have a rapid growth of per capita income and there is an increase in demand for food.

Even with the fast growth of the market, agricultural products' trade still faces a lot of serious problems. For example a slight change in the climate could reduce the agricultural production by about 10%. This no doubt is a serious problem. So the next thought would be how does one preserve agricultural products and prevent their wastage. This could be done by providing modernized industries and innovations that would safeguard these products. But all these require finance.

FINANCIAL PROBLEMS FACED BY AGRICULTURAL PRODUCTS PRODUCERS

  • The standard method of fund acquisition is via bank loan. But this faces many drawbacks which may include:
  • Apart from the farm land the farmer owns no other collateral.
  • The value of said land doesn't increase with time.
  • The little collateral which could be put forward are mostly undervalued by the banks so as to minimize riisks.
  • The acqired funds via loans are not enough for the farmer to expand or acquire advanced equipments.
  • The acquired loan isnt even enough for normal activities thus the farmer have to sell his products are a far lesser rate to make up.
  • There is also the burden of loan payment

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Agricultural market

The biggest contribution to the world market growth is made by developing countries. Because of the fact that they have a rapid growth of per capita income, the result of it is an increase in demand for food. This way, in India in the period from 2000 to 2015 revenues increased more than twofold, and in China – up to four times. Despite the rapid market growth, agricultural products’ trade is related to several serious issues that are worsened by current climate change.

Classical funding

For issuing a loan a collateral is needed. As collateral can be accepted only land, transport, and real estate. One can’t pledge stock – in – trades as collateral.
Land cost calculation and other collateral assets are made on a yearly basis using the same principle, so that’s why the total loan value is the same each time.
Producers don’t have the opportunity to get a correct and up – to – date appraisal of their property, so as a result, banks undervalue the collateral assets in order to minimize their risks.
The obtained funds are not enough to expand the area under crops or purchase more modern high – performance equipment.The agriculture potential development isn’t realized due to lack of funds.

Features of KNL ecosystem
Benefits of investing

KNL’s good liquidity, which stimulates the demand for a token and protects both investors and the platform from market volatility, allows investors to plan investments more thoroughly. Using KNL to cover all transactional and commission expenses is a fast, secure and reliable way to pay for digital assets and derivatives on the Kernel-Trade platform.

Blockchain

The purpose of project is finding a solution to this issue with the help of the introduction of additional security guarantees that are offered by the blockchain technology. Will be the first pilot project in Russia, which will form great volumes of crops on its platform and trade on the komgo SA European platform, developed with the support of BNP Paribas, Societe Generale, Mercurial, Gunvor, Natixis, Citi, ABN AMRO, Shell , ING, Koch Supply & Trading, MUFG Bank, SGS, Rabobank and Crédit Agricole Group in the jurisdiction of Geneva.

Problem solving

Collateral for a loan with real estate, land or agricultural machinery.
The need for immediate sale of grain at unprofitable prices immediately after harvest to receive finances in the spring and autumn periods.

New opportunities

Use of grain stocks as collateral for assets received.
Conclusion of a transaction for the tokenization of assets without the need to provide reporting documentation on the annual profitability of the enterprise.

Conditions of receipt

Standard financial model: repayment of the loan amount and interest on the loan.
Grain reserves or other crops are accepted as a pledge to attract investments from the agricultural producer.

Revenue from the profit

KNL is a token that provides access to investment projects on platform, issued by the Kernel-Trade Platform digital asset fund. The KNL retention requirement is mandatory for the Kernel-Trade platform, since it guarantees all payments.
KNL’s good liquidity, which stimulates the demand for a token and protects both investors and the platform from market volatility, allows investors to plan investments more thoroughly.

STATE SUPPORT MEASURE

The ministry of agriculture via several agricultural development program try to help out but the programs are only aimed at reducing the already incurred cost and burden of loan. They do not actually solve the problems of the farmers.

THE KANEL PROJECT

The Kanel project (KNL project) is a new economic model created on the Blockchain platform to support agricultural producers. Kernel Trade is based on the Stellar network "TokenD" core and uses advanced Blockchain technologies. It provides tools for individual investors and all sizes of businesses.

The platform brings closer the owners of asset and the investors through new financial instruments without compromising the level of operations. The assets could come in several forms which could include real estate, agriculture, manufacturing etc.

The infrastructure is being built on a legislative framework to maximize the safety and security of investments on the platform.

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BENEFITS OF KERNEL

  • KNL provides a platform where the farmers' products are put for sale, insured and bought at beneficiaial prices.


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