Frequent Asked Questions

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What is it and how does it work?

What is Agrotoken?

Agrotoken is the first Global Platform for tokenization of agricultural commodities. That is, we create stablecoins collateralized in grains and food. It is an ecosystem that digitizes the value of grains and allows farmers to save, invest and transact with their production.


How does Agrotoken work?

Agrotoken's operation is very simple: if you are a Farmer, you only have to create your account on our platform to start tokenizing grains. Then, you can manage those tokens to invest, save or buy in a simple and quick manner.

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How to tokenize?

What is tokenization?

Asset tokenization is the process of converting real assets into digital assets and thus converting the proprietary rights of a particular asset into a digital token.
"Tokenize" means to make a physical or non-digital asset digital. Just as tokens can account for money, they can also represent an agricultural commodity (corn, wheat, soybeans, coffee, bananas, etc.).

At Agrotoken, when we tokenize, we create stablecoins. The first one we have created out of soybeans in Argentina and is called SOYA. In this case, 1 SOYA Token = 1 ton of soybeans.


Why to tokenize?

There are many reasons: comfort, security, ease of transporting or transferring them, and liquidity. In this way, a physical asset, by being transformed into a digital asset, can expand its possibilities of monetization, for exchange for digital currencies or for common currency to acquire products and services (cars, supplies, etc.). In addition, it can be used as collateral for credit and loan services, among others.


What are the benefits of tokenizing?
  • Investors can trade real-world assets. which due to their low liquidity, would have been difficult to trade in the past.
  • Tokens improve the liquidity of assets, reduce territorial barriers and attract new Investors through fractional ownership, as they allow to own a percentage of a real-world asset and repackage it with traditional bonds or hedge funds to resell in cryptographic markets.
  • They increase portfolio diversification as Investors can now co-own multiple assets at the same time.
  • By working with blockchain technology, asset tokenization becomes a much more defined process by capturing the documents, information, and data about an asset in a secure digital vault that can be accessed using a blockchain private key. Once someone buys tokens, no one can delete or change the ownership record, the tokens can be accessed from anywhere in the world, 24/7 through a web application or a mobile APP.
  • Furthermore, the tokens eliminate the asymmetry of the information present during the transfer of ownership and broaden the base of potential Investors.

How is the tokenization process for SOYA?

In Argentina, the tokenization request process has 3 steps:

  1. Submit and upload the Electronic Deposit Certificate.
  2. Sign the grain sale contract (Price to be fixed or Price made) with an Oracle (exporter) authorized by Agrotoken (you will see them at the beginning of the tokenization application).
  3. Sign the assignment offer letter.

Once the documentation is verified, the amount of SOYA tokens corresponding to the tons of grain tokenized is deposited in the digital wallet of the farmer on the Agrotoken platform.


How long can I have my grains tokenized?

You can choose to keep your grains tokenized for 30, 60, 90 days or renew them until the maximum contract date.


What is SOYA?

SOYA is the first token of the global platform for tokenization of agricultural commodities Agrotoken.io that is created out of the production of soybeans from Argentine farmers.
SOYA is a stablecoin. That is why each token is backed by a real ton of soybeans and this is reflected in the Proof of Grain Reserve, guaranteed by an Oracle. When the farmer tokenizes his production, he obtains SOYA tokens that allow him to transact, invest or save. The conditions have been created so that SOYA can be transferred to the crypto ecosystem and can be used in Exchanges, DEfi Apps, Marketplaces, and any other application where it is accepted.


What is minting and burning?

Minting: means to create or issue a token. In our case, we create SOYA with the tokenization applications.
Burning - means to remove or redeem a token. When the date that the Farmer set to detokenize arrives or when he makes the decision to detokenize in advance, the tokens are removed. The PoGR is released and the convertibility of the tokens with the tons of soy is balanced.


What is an Oracle?

The Oracle is responsible for safeguarding the PoGR (Proof of Grain Reserve). It can be an Exporter or Collector. You can see the Oracles alternatives when you make the request for tokenization.


What is the PoGR?

The PoGR is the Proof of Grain Reserve that certifies that for each token generated on the platform there is a ton of grain backing it. It is transparent, secure, decentralized, and auditable at all times through the Ethereum blockchain (the system that manages it).


What is an ERC20?

Our SOYA token is an ERC-20 token. This type of smart contracts has a standard design to create interoperability and compatibility between tokens and promotes improvements in the Ethereum ecosystem. There are many ERC-20 tokens created with different functionalities. You can check how many are currently on Etherscan.


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Agrotoken Academy

What is a stablecoin?

A stablecoin (or “stable currency”) is a cryptocurrency created in order for its value to remain stable. This type of cryptoasset allows to minimize the volatility of its price (unlike Bitcoin), since it is backed by other financial assets, FIAT currencies, raw materials, and even other crypto assets.
In the case of Agrotoken, we have the support of grains. A token generated on the platform will always represent a ton of grains. In the case of SOYA, for example, 1 SOYA Token = 1 ton of soybean.


What is Blockchain technology?

Blockchain means "chain of blocks" as it is being made up of blocks linked together and encrypted. Once the block is registered there is no chance that someone can hack it, because to do so they would have to hack all the linked blocks built later. This makes it decentralized, immutable, and much more secure.
It is a technology that eliminates intermediaries in transactions and decentralizes management. Thanks to this, it is the user who controls the process and not the banks or government entities. This allows to eliminate costs and tedious time-consuming processes.


What is the USDC?

USD Coin is a stablecoin created by the crypto companies Circle and Coinbase. You can always exchange 1 USDC for USD1, which means that their price is stable. Each USDC is backed by one US dollar, kept in a bank account.


What is Ethereum (ETH)?

Its goal is to become a blockchain capable of running decentralized applications.
The network's currency is called Ether (ETH), also called “the fuel of smart contracts”, which enables the mining of data blocks on the blockchain.
It is responsible for technological innovations that seek to transform the world as we know it.


What are smart contracts?

Smart contracts aim to eliminate intermediaries to simplify processes that save costs for the user.
To understand a smart contract, let's remember what a contract means. A contract is an agreement between two or more parties which defines what can be done, how it can be done, what happens if something is not done. In plain language, they are rules of the game that allow us to understand how the interaction will be between the parties who agree to play.
Until now, contracts have been expensive written documents, subject to territorial laws and jurisdictions that, for the most part, require the intervention of lawyers and notaries. That is, more costs, time and third parties involved in the process. Unfortunately, they are not accessible to anyone, although the worst thing is that contracts can be subject to interpretation.
A smart contract is capable of self-executing and enforcing in itself, autonomously and automatically, without intermediaries or mediators, which avoids verbal or written interpretation because it is not written in the languages we speak, but rather they are written in “scripts” (Computer codes) that are programming languages. This means that the terms of the contract are statements and commands in the programmed code.
The parties of a smart contract can be individuals and / or legal entities, but also machines or programs that work autonomously. A smart contract is valid without depending on authorities. This is due to its nature: it is a code visible to all and that cannot be changed as it is blockchain-based technology. This gives it a decentralized, immutable, transparent and secure character.


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More about Agrotoken

Can I store SOYA in a wallet other than Agrotoken?

SOYA is an Ethereum token (ERC 20), so it can be stored in a wallet compatible with that digital currency, such as Metamask, or in cold wallets, such as Trezor or Ledger.
To carry out the send and receive operations, you must have the transfer function enabled. For security, this authorization will be available by region and by type of Token.


I am an investor, where can I buy the SOYA token?

At Agrotoken we work to democratize investments. Very soon you will also be able to buy, sell and transact with SOYA from anywhere in the world. Soon, we will tell you how and where. Share your email with us to keep you informed.


I have my soybeans in a silo bag in Argentina, can I tokenize it?

We know that many Argentine Farmers have their soybeans in silo bags. We are working with IOF, RUS, and other companies to provide you with a solution so that you can tokenize as well. Share your email with us to keep you informed.


In which countries can soybean be tokenized?

The platform was launched in Argentina, but we are working so that, in a very short time, Farmerss from Brazil, Uruguay, Paraguay and the United States generate their own soybean token.


Can I tokenize other crops?

At the moment, only soybean can be tokenized. The Agrotoken team is working so that tokens can soon be created out of other crops.


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Your account

How do I sign up?

You can sign up through the SIGN UP AS A FARMER button.
The account registration can be made in the name of a natural or legal person. If it is a legal person, you will have to indicate who your legal representative is and we will request information about this person.


How can I do a tokenization?

In the Agrotoken.io platform! On the home page you will be able to start your tokenization application.


How do I know about the status of my application?

In the Farmer's account, in the My Applications section, you will be able to identify each of the Applications and check the process status.
In the notification bell you will find messages with communications, important information and instructions, in case we need you to take any action. In addition, in the e-mail provided in the account sign up process, you will receive communications about how your application is progressing.


How do I see the SOYA tokens?

You can view the SOYA tokens from the account overview on the home page. Remember that tokens account for the volume of tons of tokenized soybeans.


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Incomes rates

Although the Agrotoken platform technology is applied to any grain and geography, there are market peculiarities in Argentina that were considered at the time of building the process flows that will not necessarily be the same in other countries.


How do I see the incomes I get as a benefit from tokenizing my soybeans?

The incomes are displayed on the home screen of your account. They are displayed in two ways:

  1. Accrued incomes: it is the accrued incomes that refers to the activity of the account during the current month. They are calculated on a daily basis and their valuation is given in USDC. They are paid on the first business day of the month, unless an early detokenization is carried out, in which case they are paid on the spot.
  2. incomes paid is the total incomes credited to date in your wallet.

What is accrued incomes?

It is the activity of the account during the current month. They are calculated on a daily basis and their valuation is given in USDC. They are paid on the first business day of the month, unless an early detokenization is carried out, in which case they are paid on the spot.


What is incomes paid?

They are the total incomes credited monthly from the start of the Farmer's activities on the platform until today.


How is the value of the SOYA token determined?

The value of the tokens is calculated based on:

  1. Valuation in USD: it is the number of tokens x available market price Matba Rofex.
  2. Valuation in pesos: it is the valuation in USD x exchange rate buyer of Banco Nación de la República Argentina.

What is the incomes generated by SOYA?

SOYA tokens deposited in your Agrotoken wallet generate 3% annual incomes in USDC or SOYA. This is an exclusive benefit for Pioneer Farmers who tokenize their soybeans. The duration of this benefit will be 6 months or up to 25,000 tons.


How does incomes work?

If you are a Pioneer Farmer, you will see the incomes generated daily. The total amount generated in the month is deposited in USDC into your Agrotoken wallet on the first business day of the following month. For example, if you deposit on March 9, every day until March 31, you will be able to see how incomes accumulates in USDC. If April 1 is the first business day of the month, that day the incomes will be deposited into the account.


When do I get paid the incomes?

On the first business day of the month, the incomes accumulated during the previous month is deposited.


What is SOYA's reference price to earn incomes?

It is the reference value of the grain in the local market.


What is the reference price of SOYA in the market?

Although it is the reference value of the grain in the local market, in the Exchanges, where SOYA can be acquired, there may be a different negotiation value depending on the supply, demand and the FIAT or cryptoasset currency in which it is being transacted.


What can I do when USDC is deposited?

Once the USDC has been deposited in the Agrotoken account, you can transfer it to your bank account.


Who are the Pioneer Farmers?

Pioneer Farmers are our VIP farmers. We want to reward them for trusting us and accompanying us in the first steps of this adventure.


What are the commissions?

We want to reward the Pioneer Farmers who accompany us; thus, the first 25,000 tons will not have related fees or commissions.

  1. Tokenization fee: 0.25%, fee charged by Agrotoken to carry out the tokenization process.
  2. Detokenization fee: 0.25%, fee charged by Agrotoken to carry out the detokenization process.
  3. Fee for early detokenization: 0.37%
  4. Network commission: fee charged by the network of miners for carrying out the transaction on the blockchain. It varies depending on the value of the ether and the volume of transactions on the Ethereum network.

What does the ton reserve mean?

The reserve of tons ensures that within the PoGR (Proof of Grain Reserve) there are tons of grain corresponding to taxes, which will be returned to the Farmer at the time of detokenization, either in an agreed manner, in the application process, or by early detokenization.


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How to tokenize or renovate?

Can I perform early detokenization?

Yes, you can detokenize whenever you want. The tokenization process can take up to 24 business hours.


How is the detokenization process?

Detokenization can be automatic or anticipated.
It is automatic when the tokenization term is met. In that case, we will notify you 48 business hours before the de-tokenization occurs according to the term you have chosen. This does not require you to take any action. Automatically, on the scheduled date, the termination of the assignment occurs, and the Oracle is notified. The tokens are eliminated, and the incomes generated during the days of the month is deposited.
Early detokenization occurs when you want to detokenize before the agreed deadline. Once you request early detokenization, the process is the same as in the previous case. This process can take up to 48 business hours.


What is the "assignment offer letter"?

The offer letter is the assignment of temporary collection rights on the purchase contract entered on the platform for the period chosen in the tokenization application.


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