Forward the Orginal Title: AgriDex

Hey, friends!

Today’s newsletter is a deep dive into AgriDex.

So what exactly is AgriDex?

In simple terms, it’s a RWA Marketplace on Solana, bringing the $2.7 Trillion Agriculture Industry on chain.

Memecoins may be fun, but Solana needs substance. While the blockchain’s speed, low fees, and scalability have fueled an explosion of memecoins, capturing retail traders and driving community engagement, the long-term health of the ecosystem depends on more than fleeting hype.

AgriDex leverages the power of Solana’s blockchain to revolutionise livestock trading

But we will explore this in depth in this newsletter.

AgriDex

Farming and agriculture are undergoing a technological revolution. Food security, the cost of staple products, and environmental sustainability are at the forefront of national agendas, spurring innovation to enhance efficiency. However, many of these advancements come with high capital costs, creating barriers to adoption, especially for small-scale farmers.

The global agricultural trade system, vital yet inefficient, faces numerous challenges due to inconsistent food quality standards, differing jurisdictions, tax systems, languages, currencies, insecure trade routes, and fraud risks. These frictions result in a system ripe for disruption.

Key issues include:

•Food Fraud: Globally, food fraud causes losses of $30–40 billion annually, with only 20% of suspected cases reported. In the UK, £1.96 billion was lost to food fraud in 2021, but of the 610 reported cases, only 16 resulted in prosecution, underscoring the difficulty in detection and accountability.

•Poor Traceability: Cross-jurisdictional transactions using inconsistent contracts obscure product origins, quality, and sustainability, enabling fraud.

•Unfair Access: The current ecosystem disproportionately shifts risk to producers while limiting their profit margins, hindering sustainable food production.

•High settlement costs: In complex jurisdictions settlement fees are typically 3-6% of the total cost of a transaction and can take up to 5 days to settle. In areas with high currency volatility this can result in a double digit percentage point loss in real terms

AgriDex addresses these challenges by providing a blockchain-based, decentralized marketplace that promotes transparency, accountability, and fairness. By leveraging blockchain’s immutable ledger, AgriDex reduces costs, increases choice, combats fraud, and verifies the quality, origin, and sustainability of traded goods. The platform aims to resolve inefficiencies, fraud, and access to finance and insurance, creating a more equitable trading system.

AgriDex’s features include:

•An inclusive marketplace for all supply chain participants.

•Transparent, verifiable transactions.

•Simplified KYB (Know Your Business) processes.

•Direct settlement in any currency.

•Ricardian contracts for legal and financial clarity.

•Visibility of sustainability credentials with support for standards disclosures.

•Customizable payment terms.

•Support for all Incoterms (international trade terms).

•Improved access for trade financiers and insurers.

Built on Solana, AgriDex tokenizes agricultural trade. Each transaction is represented by an NFT, recording product details, pricing, and payment information. The platform allows investors, farmers, and governments to save costs and improve profitability by unlocking value in the $2.7 trillion global agricultural market.

Typically settlement fees are 3-6% of the total cost of the transaction in complex jurisdictions and take up to 5 days to settle. Through Agridex and the use of stablecoins these are reduced to under 0.5% and seconds.

AgriDex’s features include a dashboard for real-time tracking of transactions, payments, shipping, and missing requirements, providing actionable insights. Buyers and sellers can customize trade terms, ensuring flexibility to meet individual needs.

Team and Achievements

AgriDex has raised $6m+ in funding in rounds from Endeavour Ventures, with contributions from African Crops Limited, Oldenburg Vineyards, Moonrock Capital’s Head of Research Valentin Wunderlich and ex-Goldman Sachs CTO Hank Oberoi to name a few + interesting partnerships like Plume (screenshot below).

The team brings diverse expertise spanning finance, agriculture, legal compliance, and technology. Key members include:

•Henry Duckworth (CEO and Co-founder): Over 12 years of experience in trading and agriculture investments across jurisdictions. The youngest trader at Trafigura and comes from a multigenerational african farming family and so he has extensive experience with the problem

• Russell Duckworth (Executive Chairman and Co-founder): Former Head of Global Equities Research at Deutsche Bank and original founder investor into DeepMind
• Hoodies (Dev team) Introduced by the Solana Foundation as their trusted partners, the Hoodies team is a team of engineers & designers collaborating with Solana projects since 2020. They partnered on multiple initiatives with Solana Foundation, Ledger, Helium, Dialect, Neon. Additionally, they have launched several stablecoins on the Solana network.

Tokenomics

The AGRI token powers AgriDex’s decentralized marketplace, incentivizing stakeholders across the supply chain. Use cases include:

1.Governance: Token holders can propose and vote on platform changes, with deeper engagement rewarded with greater governance power.

2.Buyback & Redistribution: A percentage of profits will be used to buy back tokens and reward key contributors.

DAO-eligible token holders will vote on the following utilities post-launch:

A. Market Insights - Subscribe monthly to access valuable insights, creating a steady demand for the token while enabling smarter farming decisions.

B. Liquidity Pool Rewards - Provide liquidity for loans via liquidity pools in return for a reward

C. Impact Farming Fund - Crowdfunding via the $AGRI token allowing retail to collectively invest $AGRI into an “impact farming fund,” which pools their tokens to support high-potential farm projects. If the project succeeds, holders receive a share of the returns or special rewards (e.g., token rewards, exclusive merchandise from the farm) in farmland and provide donations to sellers/producers.

D. Data-On-Demand - Sellers to commission insights, reports or advertising.

E. Environmental and Social Rewards - AgriDex will create a staking mechanism where retail holders can stake $AGRI to earn rewards, but the twist is that part of the staking profits is directed toward environmental or agricultural development projects. Holders get yield, but they also help fund real-world sustainability efforts led by the AgriDex Foundation.

Token Distribution

•Total Supply: 75 million tokens at launch (Dec 4, 2024).

•Initial Price: $0.065.

•Distribution: Allocated across token pools without public issuance.

All AgriDex Governance Token will be distributed according to the following Token Cap Table:

AgriDex is extending the RWA (Real-World Asset) narrative into agriculture, leveraging Solana’s fast settlement, scalability, and low fees to revolutionize a critical global industry. By enabling the tokenization of agricultural commodities, AgriDex aims to transform agricultural trade while driving profitability for stakeholders and promoting sustainability.

Disclaimer:

1. This article is reprinted from [The Black Swan]. All copyrights belong to the original author [route2fi]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.