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Idea 1: Data entry KisanCoin (KC)

Problem

...

  1. Access to working capital for FPO and also farmers

    1. Farmers and therefore FPO as well are credit invisible

    2. Credit assessment or risk models don’t exist

    3. No prior information to create new models

  2. Cost of capital high (interest rates high)

    1. Because lack of access to formal financing options

    2. High risk associated with agriculture business

    3. lack of transparency and business plan

Crypto ideas

Assumptions

  1. Conventional financial organisations will never deal directly in cryptocurrencies/ tokens

  2. Farmers won’t understand decentralisation concepts and won’t be able to participate in native crypto currencies like bitcoin (like putting resources to do mining to ear bitcoin)

  3. There are investors around the world in crypto space who would want to invest in a philanthropic plus less risky return

Module 1: Data entry for KisanCoin (KC)

Who can mint KC:

Farmers when they

...

Enter data:

  • slowly changing data: contact details, farm details, livestock info, equipment and

  • every season data: farming activity like input procurement, selling information, materials and consumables….

...

Earn rating and positive reviews from data consumers

...

Contribute to the data pool that could be with farmer collective (some percentage of total coins)

...

:

  1. Ecosystem actors( ag companies, government, research orgs etc)

    1. No accurate data about farmers leads to lack of actionable intelligence

    2. Cost of working with farmers and FPOs directly

  2. FPOs

    1. Lack clear incentives make it difficult to curate member farmers' info

    2. Difficult to train farmers to self-enter information

  3. Farmers

    1. Lack of incentives

    2. Not digital savvy and suspicion

Solution:

Business sketch:

...

Product offering:

  1. A data entry tool that can be embedded in the apps operated by farmers or curators with an intuitive interface

  2. A discovery web app for agriculture companies for which they pay subscription giving them access to aggregated data, make offers and rate farmers/ farmer groups

Incentivise using KisanCoins (KC):

  • What is KisanCoin?

    • A reward mechanism for farmers to monetise their data

    • KC gives me a right to sell data on the network

    • KC also indicates the stake I have in the network

    • Value of KC is market driven

    • KC is not a currency which can be used to buy stuff outside network

    • KC help activate features in data collective and get dividend

    • KC is “transferrable”

    • KC has payload associated with it (data entered about the farm and farming by the farmer)

  • Who can get KisanCoin?

    • Farmers

    • Curators

  • when they

    • Earn rating and positive reviews from Ag companies

    • Some percentage is deposited back when their data is accessed

    • Curators (within farming or rural community at large)

      • Enter data on other farmer’s behalf

      • Verify/ validate data

      • Earn rating and positive reviews from farmers and/or data consumers

  • How will farmers earn KisanCoin?

    • The coins are

    given

    • earned for each

    type

    • piece of information entered

    as per an algo tailored to ag specific thing

      • There are

      fixed coins for slowly changing info like contact details or farm (add one more farm or livestock and you get x coins) - called base coinsThe changing information for each season can earn a total amount of coins like X and these get divided by some number for previous seasons, for example 2: so if I have been entering

      • two categories of information: static/ slow changing and seasonal

      • Farmers get fixed amount called as base KC (b amount of KC) for each set of information, for example, contact details have name, phone, village, block, district - if all the entries are made the farmer gets b and then there are land details for the farm(s) he/she owns (farm boundary, etc) will give another b coins

      • Farmers can get at most X coins for every season if they enter all information which can again be categorised like seed details, chemical details, land preparation details and so on

      • The previous season’s KC will be halved (if not used) creating more rewards for more recent information but not losing the rewards that were entered earlier, for example: if a farmer enters for last four seasons the complete farming activity information the total tokens would be X(1+0.5+0.25+0.125) = 1.75X

      . This creates a reward for recent info but do not let the rewards for previous entries to become zero.

    • The coins can also be earned for entering information about the other farmer (some percentage) thereby incentivising the local curators

    • Farmers can also be verifiers and they can verify the information entered

  • KC is a “transferrable” linear coin, that is, it is created and then used for some transaction which can burn it but it is also transferrable to certain actors

  • Transactions:

    • Directly transfer the data: KC will be associated with data entries made and each data being accessed leads to KC being burnt and the value is determined by the market. Note that some percentage is back with the farmer for unchanging data.

    • Transfer from the pool/ collective:

      • Type 1 transactions are raw data accessed by someone through the pool/collective

        • KCs are burnt

      • Type 2 transactions are aggregate data accessed by someone about the pool/ collective

        • KCs are not burnt but the amount contributed to the pool defines the dividend

    • A KC holder with data (farmer) can buy KC from another farmer (whose KC will be burnt)

      • The coins are doubled (minus some percentage) for each verification, example, a farmer has X coins and gets it verified by paying verification charges (V)

      • The total number of coins that a farmer can have from his/her farm(s) will be n*b + 2X - V, assuming n sets of information that make up complete static information (for further analysis let’s say B = n*b)

    • A farmer can earn coins by verifying other farmer’s information (V)

    • A farmer gets some reward coins for contributing to the data pool (R)

    • A positive rating and feedback can earn (F)

  • How will curators earn KisanCoin?

    • A curator helps farmer enter details and get C coins

    • A curator can also verify farmer data and get V coins

  • Transactions of KC:

    • Burn KC to get FIAT money

      • Transfer data for some payment in fiat currency where some percentage which is a function of the KC associated with data will be burnt

      • Every subscription for Aggregate data will burn some percentage which is a function of the KC associated with the member will be burnt

    • Transfer KC

      • Can A farmer buy KC from another farmer there? - to be answered

        • This is to provide a way for the farmers in a geography or crop where there are not many institutional buyers to

        buy KC

...

        • sell their KC to other farmers who might be interested

        • To answer - once the KC is transferred, what happens with the data and should the KCs earned by entering static data should not be transferable?

Idea 2: Liquidity pool using INRT

...

(local stablecoin)

Problem

  1. Access to working capital for FPO and also farmers

    1. Farmers and therefore FPO as well are credit invisible

    2. Credit assessment or risk models don’t exist

    3. No prior information to create new models

  2. Cost of capital high (interest rates high)

    1. Because lack of access to formal financing options

    2. High risk associated with agriculture business

    3. lack of transparency and business plan

Assumptions

  1. Conventional financial organisations will never deal directly in cryptocurrencies/ tokens

  2. Farmers won’t understand decentralisation concepts and won’t be able to participate in native crypto currencies like bitcoin (like putting resources to do mining to ear bitcoin)

  3. There are investors around the world in crypto space who would want to invest in a philanthropic plus less risky return

Solution

Summary

A decentralised finance system where investors in crypto can create a pool using stable coin of the corresponding fiat currency in the jurisdiction. The investors can see the ratings and reviews of the farmer group before creating a pool and repayment history. The farmers can access from liquidity pool the money equivalent to the fiat currency like INR by paying some transaction charges and not interest. The disbursal of money is done as per the stage of farming and requirement. The farmer group should ensure that the money is deposited back in the end of the season, its a group responsibility, that is, even if one farmer fails the other farmer can help him/her so as to ensure the group rating is good for subsequent seasons.

Basics

  • INRT is a stable coin which is always equal to INR

    • It can be used by people to pay just like INR but through the app not involving any bank or anything

  • The FPO or any farmer group can create a requirement of liquidity pool (money that they need as working capital) and they can get in INR from INRT on an exchange and vice versa

  • The FPO also has should have basic details of member farmer’s farmers' data (non personal) and also some rating and reviewslike number of farmers, total area, crops sown, crops for self consumption, projected crop for sale, previous season’s details and repayment history etc

Investor story

  • Alice is a user in crypto world and she has 10 Ethers which are currently valued as 10000 USD at 1000 USD each, she sees a philanthropic drive which helps farmers in India with some returns (not very high but something that is not risky and decent return she can’t get easily in US)

  • Alice converts her Ether as a collateral to get some INRT (let’s say 1 USD = 75 INR, so a total of 750000 INRT, she gets 700000 INRT and rest is kept)

  • Bob gets referred and commit 5 more ethers and so on

  • The FPO or any farmer group gets INRT in their account

  • The way liquidity pool works is that the INRT is given without interest but transaction fee is charged for every transaction which is minimal and the amount is disbursed at specific time for specific activity. For example, a farmer needs INR 10000 for buying seeds, he/she takes that amount by paying INR 100 as transaction fee. Next he needs 30000 for labour, he/she takes that amount from the liquidity pool by paying INR 100 as transaction fee and so on. When they return the money they pay 100 ruppe as transaction again

  • The transaction charges go as the return to Alice along with the amount whenever is given back, so she gets her 700000 plus lets 300*100= 30000 for 300 transactions done

  • Alice goes back after six months, convert 700000 INRT to 10 ethers which had probably shot up to 1100 USD and she earned ~ 5 % extra return

...

Idea 3: Philanthropic drive using FarmerHeroCoin (FHC)

Problem

  1. How can internet users help farmers get incentives to be able to achieve a common goal that affects everyone like adoption of climate smart practice or natural farming?

Solution