1. Prehistory
The White Paper concept.
We offer you to find out the concept of the White Book which by means of terms, notions and principles will shortly describe the goals and methodology of their solution. Additionally this concept will help get acquainted with the idea of interaction between cryptocurrencies and real economy mechanism implementation.
The expected project duration is 9 years. A complete presentation of information, a listing of tasks and solutions that can be performed during the implementation will be exposed in the major White Paper, which will be recorded and posted on the website along with its concept.
2. Abstract
In 2021 the grain market is valued at 5 trillion dollars. The market is known for its specificity and privacy, thus new technologies are quite slowly penetrated into this branch and minorly influence the cost reduction and the consequential price of the product.
A high level of losses during the assembly, transportation, analyses, transloading makes this type of business extensive. The increase of the product price is highly influenced by the workers’ salary. The contracts signing may frequently be delayed caused by mistakes directly affected by the human factor.
For the purchase of crops, a manufacturer and a buyer must use the services of intermediary companies that carry out a long series of manipulations with the cargo: purchase, transportation, analysis, drying, etc.
A large percentage of low-quality companies make this business low-margin for processing companies, and make it incredibly expensive for the end consumer.
Additionally, the consumer has no connection with the agricultural manufacturer because the services of an intermediary are not cost-transparent, and there is no possibility of conducting selective quality and pricing control.
Small or medium businesses are deprived of the opportunity to buy crops or oilseeds directly from an agricultural manufacturer without many intermediaries, which in their turn are cost and transaction-speed-ineffective, and actually do not want to work with small and medium businesses.
Small and medium-size farms can eventually be displaced by larger players, since the high level of intermediary companies’ costs lies on the agricultural manufacturer.
Currently the process of the agricultural market monopolization and consolidation takes place, agricultural holding companies are founded and highly succeed. Such agricultural enterprises have a full range of services for the transportation and trading of their own product.
In the short and long term, agricultural holdings will be more effective than existing intermediary companies in conjunction with small and medium-size businesses. At the same time, in the long term it will turn out that the number of crop types offered for sale will decrease, the cost of agricultural products will increase, and due to the collapse of small and medium-size companies the number of jobs will decrease, as well as the number of a stable middle class will decrease. All this will entail a number of social problems, an increase in prices for grain and oilseeds, and subsequently a wide range of the population will have a shortage of inexpensive and high-quality products availability.
The HRONOS.IO is designed to solve not only economic, but also social problems through direct contact between the agricultural manufacturer and the buyer. HRONOS.IO creates new types of markets and consumers.
The 2022-2024 economic crisis will contribute to the destruction of both the classical financial sector and many ineffective large and medium-size agricultural companies. After the bankruptcies of these enterprises, niches are formed for new small and medium-size high-tech companies. This is the basis for the creation of new markets and consumers.
In addition to the classic processing buyers, a new class of buyers is being created for end-consumers.
The farm products cost reduction and a high purchase speed will form agricultural products micro-markets. These will be markets for purchasing, storage, processing, microloans for small and medium businesses. As a result a new type of buyers will appear: the buyer-holder and the buyer-investor.
The buyers’ market will change from classic to innovative, market segmentation will sharply increase, new types of markets will form. The new consumer cluster will demand new types of services.
The influx of new players and capital will increase the stability of the agricultural market and affect the development of the crop variety, which will create an advantage for the agricultural manufacturer and for the final purchaser of goods and services.
The high speed of purchases and sales, together with smart contracts, reduces costs and makes them transparent, and companies providing transportation, storage, drying, and analysis services are beginning to compete effectively.
All of this will affect the paradigm of trading, transportation and storage. New lines of business will be created in the industry.
The fundamental element of the HRONOS.IO is the 1HRS-token. The implementation and use of the HRS-token makes it possible to build an ecosystem of high-speed open grain and oil markets. HRS-token requires the need to create a unique blockchain with a system of independent oracles.
All this creates an environment for the foundation of independent decentralized exchanges around the world and, most importantly, unites the real sector of the economy, blockchain, and cryptocurrency.
After the introduction of the HRS token, the classic market will change forever, it will give push for new markets, services, business areas, while processes and solutions in the established grain and oil market are optimized.
3.Introduction.
The idea of digitizing agriculture is not new. Blockchain and cryptocurrency technology is experiencing a renaissance and acceptance by different communities, so there are not so many real projects, mainly the creation of tokens for existing agro-trading companies, which by issuing a token increase the company’s market capitalization. One start-up from Algeria declares the construction of an ecosystem which through its own token will solve the problems of financing farmers, selling grown vegetables and fruits with quality control, using smart technologies: moisture sensors, light using AI, and plans to build its own blockchain.
All found projects are single and unique in their kind, we will observe the results of their implementation in three to five years.
Any agri-business company that implements blockchain, cryptocurrencies, and digital technologies is an innovator in a yet-unnamed industry. Agribusiness using Digital technologies, blockchain, tokenization, smart things, AI can be briefly described as AGRO DBTSAI; depending on the technologies used there can be any combinations: AGRO DB, AGRO DBT, AGRO DBTS.
4. Background
The appearance of bitcoin pushed the development of the first centralized and decentralized crypto-exchanges, giving rise to the creation of altcoins and other digital assets. Basically, centralized exchanges trade bitcoins and altcoins, digitized stocks, indices, digital art, metals and raw materials.
Nowadays, there is no single specialized exchange that trades digitized grain assets for cryptocurrency. The closed nature and specificity of this market make it incomprehensible and difficult for most traders.
A small number of players and a market closed for a wide range of traders make the grain and oilseed market privileged for elite buyers, where the price is controlled by large oligopolies and most of the profits are made by agricultural holdings, traders, as well as many intermediaries. All this leads to an increase in the price of crops, oilseeds. Also, the pumping of liquidity by central banks leads to inflation, all these factors lead to an increase in the price of food for the population, while the incomes of the broad masses are reduced.
While this is not a problem for advanced economies, it can turn into hunger for poor countries. Food is becoming a strategic tool in various political processes. The components of product prices are not transparent.
A manufacturer is often under an increased risk due to meteorological features, political, economic risks, and pressure from external markets on the prices of the goods they produce.
The product cost is not formed by market factors but by a set of non-predictable factors. A dry or a heavily rainy year can drastically reduce the supply of agricultural products and immediately increase the price.
The HRONOS.IO offers to stabilize these fluctuations by solving the problem of direct interaction between agricultural manufacturer and end customers, as well as by accumulating products in HRS and balancing sales over time. Important to note that crypto-traders have a few effectively reliable defensive assets at the time of bitcoin volatility. These are mainly stablecoins such as usdt, usdc, tusd and others, in theory these assets should be backed by dollars, but in practice this is not. Moreover there is not a single steadily growing asset tied to time frames with minimal volatility. Altcoins have little to do with the real sectors of the economy. Existing stablecoins resemble a low-collateral inflated bubble.
All these problems are pushing for the creation of a new, flexible and valuable instrument with its own trading platform and ecosystem working in the real sector of the economy.
5. Project-specific section
We are at the very beginning of the process when altcoins begin to take over the real sectors of the economy. There is a need in society for a new digital asset with new opportunities. Crops are a powerful hedge — a tool that can preserve and multiply your financial resources in times of volatility in the cryptocurrency market, inflation, correction or stock markets declines.
HRS-token is a new digital asset, the value of which depends on the market price of crops and oilseeds in a particular region. HRS-the token will have several features: low volatility, which has actual value, and demand.
Our idea is to create a special digital asset filled with real goods, with its help you can quickly and comfortably buy, store, sell and move real goods anywhere in the world.
1HRS-the token is backed by grain, corn and oil at 33% each.
Each coin will actually be backed by grain and oil crops kept by specialized holders, such holders have the technical capability to store this type of product, receiving a reward for storage.
The massive use of the HRS token will make the crops and oilseed market transparent, fast, risk-free using oracles and smart contracts, this will save traders’ funds and strengthen the manufacturer.
The key stage of this project will be the emergence of the first specialized grain trading exchange, the creation of a blockchain, the formation of an ecosystem, and its scaling.
The goal of the project is to create a high-speed transparent medium between the manufacturer and the end customer.
For the project implementation, NFT project-management tokens will be created and distributed. The first phase will create an 1HRS Balanced Valuable Token that can be traded on a number of partner centralized and decentralized exchanges. At the second stage, a specialized grain exchange will be implemented, its own blockchain and the remaining parts of HRS, the NFT management token will be redeemed by the grain exchange to conduct direct trading operations with grain, oilseeds and other crops on the first specialized grain crypto exchange.
The redemption of the NFT token will be carried out within 3 years after the placement. The redemption of the 1HRS token will be carried out within 9 years after the placement.
Everyone on earth has the right for quality food at an affordable price, the HRONOS.IO project is involved in creating this opportunity.
The basis of HRONOS.IO’s earnings is trading operations in the grains, oilseeds and other crops markets. It is also planned to earn money for the agricultural products supply services. The profit of the exchange is a commission and a spread. The entire amount of earnings will be directed to increasing the mass of the token and burning tokens on a monthly basis.
Every three months, the crops basket will increase per token, which in turn will be predictably increasing the actual cost of the token.
6. Marketing Analysis
At the moment, the service of direct token exchange for crops and oilseeds is new and has not been implemented by anyone. We deal only with classic markets and the best case is only indices can be purchased for tokens, not the product itself.
Purchasing grain and oil crops from a manufacturer by an ordinary consumer is not a real task, since it requires skills and understanding of how the grain market works in each specific country. For the purchase intermediary companies who buy, store, and transport are needed. Product pricing depends not only on the charges of intermediary companies, but also on the season, region and other factors. Without knowing the legislation of a particular country and the peculiarities of the region, there are risks of significantly overpaying during transportation or getting caught by scammers. The existing market is slow, expensive and non-transparent.
At the start, the HRONOS.IO project uses the well-known grain market, a team of professional traders from large operating grain trading companies in Ukraine and other countries. The entire purchase will take place in Ukraine. The sale will be carried out both in the domestic and foreign markets.
The pilot project is designed to cover grain and oil crops in Ukraine within 3 years up to 10%.
For 2021, grain production in Ukraine is 85,613 thousand tons, wheat — 33762, barley — 9776, corn — 39423, millet — 668, other crops — 1984 thousand tons. Spread per ton is $3. Income from the implementation of the HRONOS.IO within 3 years by means of grain sale is planned at the level of $ 25 million.
World cereal production is 270 million tons, oil crops — 200 million tons. With a 5% market penetration by the HRONOS.IO ecosystem, the annual profit will be $150 million.
7. Economic Model
1 1HRS token will contain 33% grain, 33% corn, 33% oil, while the total weight of grain and oil in the token will be 3 kg. When selling grain, 50% of the profit will be directed to increasing the mass of grain and oil in the token, and 50% of the tokens will be burned from the profit.
The token will be burned monthly. The reevaluation of cereals and oilseeds cost in the token will occur daily. Considering that the price of cereals is constantly changing, the trading will happen 24/7/365.
1% of the value of the token will be devoted to the creation and maintenance of the blockchain, reward to miners, support and development of the community, grain storage. The logistics for the cereals transportation will be calculated separately and the calculation will be made in HRS tokens.
After the start of the centralized exchange, income will be generated from commissions for buying and selling operations and from the spread.
In 6 years after the launch of the first grain crypto exchange, a global network of local centralized exchanges will be built up, operating independently using internal oracles and being the external oracles for other exchanges. All exchanges will operate on a single blockchain and the HRS will be the governing token.
During the first 3 years, all decisions on the HRONOS.IO will be made by the managing NFT tokens in the amount of 12 votes + 1 NFT token with the any decision veto function. In 3 years, all tokens must be redeemed at market value but not less than the original purchase price of the token. In the future, a non-profit foundation for the management and development of HRONOS.IO will be founded.
8. Token
The 1HRS token must function in the ERC-20, BEP-20, Solana, HRS-Net protocols
The total number of tokens cannot exceed 300 million.
The technology of the time-based token cost increase will be introduced.
The increase-based recalculation of the token cost occurs monthly and the first recalculation will occur at the time of the first grain HRS exchange opening.
9. Conclusion
The world is changing rapidly, and if in the 19th century D. Mendeleev said that in the XX century the world will be ruled by the kerosene dealers, then in the XXI century the world will be controlled by IT experts.
Digitalization covers all areas and now the time has come for the merge of the real sector of the economy and digital assets.
The HRONOS.IO project stands at the origins of the development of global processes, creating a unique opportunity for everyone not only to observe, but also to take part, to make a profit at the stage of buying NFT management tokens, at the pre-ICO and ICO stages.
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