CROPLAND COIN CRYPTOCURRENCY NON-FUNGIBLE TOKEN (NFT) SYSTEM AND METHOD

Abstract

A cropland coin cryptocurrency system assigns non-fungible tokens (NFTs) to cropland. The NFTs can be utilized in various transactions, including buying and selling, borrowing and lending and exchange transactions.

Claims

1. A non-fungible token (NFT) transaction method, which includes the steps of: defining an addressable market with a fixed number of NFTs representing quantities of goods and an ownership percentage for each NFT; allocating NFTs based on ownership; establishing an initial benchmark of NFT value; providing a digital currency exchange, including a platform for transactions involving NFTs and derivatives; proceeding to one or more of the steps including: buying and selling NFTs; borrowing and lending NFTs; and providing location swaps using NFTs; creating derivative products; creating put/call options for NFTs; and accruing revenue from fees on all exchanges and over-the-the-counter transactions relating to the NFTs.

2. The method according to claim 1, wherein said NFTs represent digital cropland.

Description

BRIEF DESCRIPTION OF THE DRAWINGS

[0013] The drawings constitute a part of this specification and include exemplary embodiments of the present invention illustrating various objects and features thereof.

[0014] FIG. 1 is a schematic flow chart showing a cropland cryptocurrency system and method embodying aspects of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

I. Introduction and Environment

[0015] As required, detailed aspects of the present invention are disclosed herein, however, it is to be understood that the disclosed aspects are merely exemplary of the invention, which may be embodied in various forms. Therefore, specific structural and functional details disclosed herein are not to be interpreted as limiting, but merely as a basis for the claims and as a representative basis for teaching one skilled in the art how to variously employ the present invention in virtually any appropriately detailed structure.

[0016] Certain terminology will be used in the following description for convenience in reference only and will not be limiting. Said terminology will include the words specifically mentioned, derivatives thereof and words of similar meaning.

II. Detailed Description of a Preferred Embodiment Cropland Coin System and Method

[0017] The Acres step involves assigning an addressable market consisting of a fixed number of tokens (i.e., crop coins) representing a number of acres worth a predetermined percentage for each acre. The Tokens step reflects current ownership, with the owners receiving tokens based on public ownership records. For example, and without limitation on the wide range of applications of the present invention, county governments typically include a register of deeds, which maintains a database consisting of ownership, property value assessments, tax, financing and transactional records.

[0018] At the Owners step, the initial market of token (i.e., crop coin) holders with tokens reflecting aggregate ownership value based on an initial benchmark is established. A Digital Currency Exchange step involves creating for transactions involving all NFTs, i.e., crop coin and derivatives.

[0019] The system progresses to one or more of the steps of: [0020] a) Buying/selling tokens by transferring the economic value of the (crop coin) tokens for one party (the seller) to another party (the buyer). [0021] b) Borrowing and lending, wherein a negotiated market for lending (crop coin) tokens from one party (the lender) to another party (the borrower) for a fixed term and a fee. The fee creates a forward curve or yield (lease values/token (crop coin) value for the term. The forward curve is annualized and is a function of the lease rates est. by market activity.

[0022] From the borrowing and lending step, the system and method can proceed to creation of other derivative products, including ETF and ETN products. Other derivatives can be created, including, without limitation: futures, futures, options, swaps, swot options, indices, tax collection and all other products from market innovations relating to NFT (crop coin) values. The borrowing and lending step can also lead to a step involving the creation of put/call options. These are a function of prices on the forward curve, location, swaps, or any other transactions based on the historical and implied volatility, and interest rated as calculated by market-accepted options pricing markets. [0023] c) Location swaps can utilize premiums and/or discounts from benchmark NFT (crop coin) values for specific agricultural land locations negotiated by buyers and sellers or lenders and borrowers.

[0024] At a Revenue step, revenues accrue from fees on all exchange and over-the-counter transactions relating to the NFTs (i.e., crop coins).

[0025] It is to be understood that the invention can be embodied in various forms and is not to be limited to the examples specifically discussed above. The range of components and configurations which can be utilized in the practice of the present invention is virtually unlimited.