Proof of Climate

Name of Project:

PROOF OF CLIMATE

Ticker for Token:

POC

Name of Project:

PROOF OF CLIMATE

Ticker for Token:

POC

1) In one sentence or less, describe your token. This isn’t the time to get wordy, just to the point!

One token that represent a way to protect you against climate events that may affect crops or business

2) Do you have a video to introduce yourself or explain the token? Upload it here and share the link here. (Not required)

3) Do you have a logo for your token? If so, upload it here. (Not required)

4) How does your token work? Be as detailed as possible:

An oracle that tracks climate events and delivers the data to the dApp according to the variables chosen by the token holder at dapp.

The Idea is to be a trustless dApp where you stake POC and choose one of the preloaded climate events like drought, excessive rain, excessive cold, excessive heat. All established according with the average.

IE: I want to protect my crops that potentially revenues me 10k, against excessive rain for 6 months:

I stake my 500 USD equivalent in POC on RAIN+20% (more than 20% over the average) for 6 months.

If the climate event confirms I don’t need to prove any. The DAPP will unlock the payout to cushion my loss after the period is finished.

If not, I just lost my tokens. (it may partially be burned and partially added to the funds)

To start, some value, between 5% to 10% you will stake to have protection for 6 months.

After the adoption gets bigger, the funds can afford more risk for less % reducing the costs for the farmers.

IE: Let’s say I’m a Winter Apparel Manufacturer, I can choose loss of winter (let’s say COLD -20%) to be a cushion against my lower winters sales b/c people are less likely to buy winter clothes.

The more we have people staking on the opposite sides of a climate, the more it will be beneath both because the balance reduces the exposition to the whole system… and next season you can have lower rates.

5) What problem is your token aiming to solve? How will this positively impact the crypto industry?

Decentralised and autonomous insurance to cushion money loss caused by climate events.

6) What was the inspiration of this token? How did you think of it?

Only big agribusiness players are able to access the insurance for their crops, the family farmers that are not using chemicals to grow their crops are on their own.

Small business owners have the same problem. When found some insurance company they charge a value that’s not fair or they ask for lots of proven documentation for your loss.

I was an entrepreneur working on the mountaineering apparel market and experienced some of those losses over that time. In 2013, I moved to a small town up on the hills of Minas Gerais and started to experiment with some agricultural productions. Learning about agroforestry systems and organic cultures I teamed up with some more local organic farmers to share experience and learned what we achieve from our work on the land.

In this group, we found how hard it is in our country to access loan, insurance and support for small farmers and organic growers cultures.

7) Are there any projects out there doing something similar?

With help of the XIO community I just learned about Etherisc’s crop insurance initiative. But this is using the blockchain to hold data form the farmers and besides that, while it is a non profit initiative, it is a centralized one.

8) What phase is the token in? Explore vs. Build vs. Launch vs. Scale. (If there has been no coding yet, your token is in the explorexplotarion phase)

Explore.

9) Will this token be inflationary, deflationary, fixed, or dynamic token supply?

Dynamic

10) How long do you think it would take to build a minimal viable token?

3 months

11) What skills do you have that would help bring this token to reality? (ex: Marketing, Development, Branding, etc)

I’m an entrepreneur and started to run my first business when I was 16 years old. I have some knowledge on foreign trade, graphic design, marketing management, branding and I’ve been learning about blockchain and crypto since 2013… I love to learn new stuff and the way I do that most efficiently is teaming up with people engaged in similar pursuits.

12) Are there any inherent weaknesses or obstacles to building this token? Any items you still need to figure out?

Adoption for not very techie farmers.

Another challenge is to add the location factor on it and let the oracle verify if there is enough data about weather… Maybe some locations will not be available on the first moment…

If you want to share your Twitter/Telegram handle here for people to reach out and discuss this idea with you, post them below.

@pedro_bruder

This is where you can put anything you want that was not directly asked above! Anything and everything related to your token idea can go here. Any files, links, info, etc

My inspiration came from the small organic farmers but this can be used for anyone who are exposed to weather including your barbecue party or your AirBnb lodge that will not be rented if you have a raining season…

6 Likes

Interesting concept. How would this be different than let’s say a prediction market that focuses on a specific geographic area’s climate and weather?

How could a dought have a mathematical impact on the token price?

3 Likes

Hi Steve, the idea is to create something more accessible for unbanked or really small farmers, wich at least in major part of the world has no access to prediction markets, insurance or hedges funds. Something that can fits for micro producers of coffee / berries / wines / wheat / non GMO corn / rice…
I think it should be as easy as download an app and “buy” in app features, but in this case the in-app will be the preset climate event. I do believe that some actuarial algo or oracle can help to evaluate the risk and set the value.
But another way to do that is cooperate in some farmers at some specific geographic areas where they all balances the risk according with what benefits them.
This is more complex but even more disruptive.
I grow grape vines that benefit from drought I can stake my tokens against excessive rain period (lets say 20% over the average)
But for those who product coffee the drought can kills their production if they just start. They stake more against drought and the algo balances the market.
Maybe the tokens can be burned in fractions depends on the level of the climate events over the average.

1 Like

Did some digging and found this: https://cgspace.cgiar.org/bitstream/handle/10568/34366/CCAFS-Index-Insurance.pdf

So there does appear to be some demand for this.

1 Like

How would you imagine the math formulas would work to make this tokenomics structure be possible? That it could be fair, uncheatable, and not at risk of bankrupting the insurance claim pool?

1 Like

There are 3 factors that we must face to avoid bankrupting and inflationary behaviour:
1- The pool size and the cross risk analises will determine the max amount of token distribution for individuals.
2- The pool size will determine how many/much farmers/money will be covered for the first year/season
3- Like any other insurance it can not deal with 100% recovery if lots of crops are lost at the same time.

I believe that them main problem is the first 2 or 3 years where we do not have increase the funds enough to deal with a big event that affects many farmers at once. So maybe, if we previously mint ÂĽ of the tokens to integrate that fund that will be only possible to be unlocked in case we have a wide event that affects more farmers we can have a cushion for these firsts years.
Like actuarial insurance, there is a way to preset an algo that will shows the max coverage the pool can deal with.

The period to be active at the insurance will be the period they stake the funds so the protocol can take advantage on transform part of these tokens on stable coins (we may create one stable that seek a basket of commodity crops like coffee, cacao, orange, milk, corn, wheat, rice, beans…) that can be lend as micro credits (max 1000k USD) by the farmers that holds POC using another fiat stable as colateral.
I’m not the math guy, this is why I need to team up with some others to help put this to work :slight_smile: I will make some draft to simulate how it can balance itself and keep the sustainability.

We don’t need to predict the weather but we need to track whats happening on the weather to evaluate the risk that the farmer insurance to accurate if it really happens so the farmer must be reimburse to cover their damages.The fact that if the event did not confirm the staked tokens are lost for the farmer I think will avoid gambling the system.

First I thought about burn all the tokens not claimable, but instead, we may burn some lower fraction at beginning until we reach a great size of the pool and gradually increase the burn factor after the initial years…

The more farmers on the pool the less risk of bankruptcy and the more capability to cover bigger damages.

2 Likes

Hey man, I think this is a pretty cool concept! A couple questions for you.

  1. Location
    How is location determined and is there any protection against VPNs trying to game the system

  2. Demand
    I know a number of farmers in my area (mostly dairy farmers). I love 'em, but they are not even aware of crypto at this point. For launch, I would imagine that only larger producers would be interested/ knowledgeable enough to use this. (maybe a cool partnership with Vechain? Pairing with them would definitely address some of my concerns)

  3. Proof of Loss
    Even in areas with weather problems, how would a farmer confirm their loss? How would you know its not simply a photo they found online?

I’m not asking these questions to be an ass, I’m asking because I really like the concept and would like some more clarity!

Thanks man

1 Like

Hey Steve! Every question is a gift to me! Thanks for help think further…

1- My first thought was to create something trustless their are no need to check where the people are, but when they chose the event and the location they “stake” their token for the period (maybe should limited this for 6 months). If some one want to “fake” their crops or events they are taking the risk of loosing their tokens.

2- I imagine the early adopters will be the “Silicon Valley” guys who moved to Oregon to grow organic food… at least for MVT phase. To get the mass I believe we will need to create one dApp that can be as easy as the flashstake but since we will not need to “swap” anything the wallet must be integrated (like the solutions for unbanked on Africa/India or here in Brazil)

3- I called it as Proof of Climate because we don’t need to know the crop loss, we just need to confirm that the climate event occurs using public data.
I myself grow some wine grapes here in my town, they are not affected by drought, actually it’s good to sweeten the grapes. But for those who grows coffee or organic corn it will be a mess!

For those who are exposed to drought they can pick a percentage (lets say 5%) on what they believe they will lost if there are 120 days without any rain and stake this on the dApp for the period they want to be protected. If this conditions are mach at the end of the period they will be able to receive the “cushion” they need to keep on running. If the pool has Another guy like me protecting against rain at the same period the protocol must balance according with the weighted sides. It will reduce the % people need to get the protection…

If the events do not confirm a % of the tokens will be burned according with the total staked amount. this % gradually reduces since the pools getting bigger…

Coincidently or not I found that we have already some people that loves crypto and growing their own food… maybe we are part of a trend of people that want to be more self-stand: making our own money, growing our own food and producing our own energy…

Let’s create the solutions, plant those seeds and inspire people to be free from the system.

Best winds!

2 Likes

Another similar token has come to my attetion. Not trying to be negative, but I think this is something that should be taken into consideration

https://www.arbolmarket.com/

3 Likes

Nice find @Steve_H3

when moving forward with this idea we definitely need to look at the market and what others are doing.

Thanks for pointing this out.

1 Like

Thanks for bring it, if we chose to go forward we may need to be aware of all the possibilities. I found some nice strategy’s and its great to know that it’s viable to only consider the weather like I imagine. No need to know about crops, and the farmers don’t need to prove their loss. That’s very cool app, I tried it very intuitive and easy to use. I made some quotes just to check the viability and check the costs… I found it expensive (~25%) , mainly BC it is not decentralised they need to profit from the premium payed. And they make an individual contract with all your data and I believe they are backed by lawyers. In my view…it’s solve part of the problem but still expensive and its not trustless. Let’s keep exploring :slight_smile: I love that!!

1 Like

In my dream, I see this like that:

A trustees protocol. I don’t wanna to deal with force non techie farmers to impute a lot of data and have to deal with lawsuits if they have or not lost their crops… it should be simple:

1-how much money you need to protect?
a)Only the $ you spend on your seeds?
b)The seeds plus your work?
c)The full potential gains from selling all your production?

2-What’s the climate event you need to get covered?
a)X% less rain
b)X% more rain
c)X% less cold
d)X% less heat

3-How long your protection must last?
a) 3 months
b) 4 months
c) 6 months
d) 1 year

Boom! Stake it and wait. At the end of the period if the event happen. The Dapp automagically releases your rewards to cushion your loss.

The protocol don’t need to deal if the guy really plant it or if even with the event he didn’t lost all his crop.

The first question is only to help people to reflect what is the money they need to cover. It can be as low as 100 USD barbecue event or as high 60k to cover 6.000 bottles of wine…