Whitepaper Beta Ver 1 - @2019 DEME - Demeter
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Whitepaper Beta Ver 1
版权@2019
DEME基金会
版权所有
目录
当代挑战 项目估值
农业链的短缺 现有的隶属关系
食物安全与可追溯性 Deme代币建模
农业供应链的低效性
不成熟的农业生态系统（技术、金融和市场） 企业结构
食品价格波动
Deme基金会职能管理结构
服务缺乏的农民
食物浪费
代币经济
Deme代币可作为技术解决方案 Deme代币
资金分配
代币分配
Deme代币的覆盖范围
代币实用性
可能性&可扩展性
钱包
通过恒星公共链在智能农业中实现区块链技术
实际恒星效益
区链块上的数据加密和解密 规划图
扩张战略
Deme代币实施 核心团队
产品追溯和追踪
农产品市场
涵盖市场主体行为的系统架构
供应链、信息&效率
一个共同创建的社区
Deme金融
免责声明
1. 本文件是一份技术白皮书，阐述了Demeter基金会对Demeter平台和Demeter生态
系统的当前和未来的发展。
2. 本文仅供参考，并非对未来意图的陈述。
3. 除非另有明确说明，本文件所述的产品和创新目前正在开发中，尚未部署。
4. 对这些技术和创新的成功开发或实施，或在本白皮书中所述的任何其他活动的成果，
Demeter均没有作任何保证或陈述，并在法律允许的范围内拒绝法律或其他方面所
暗含的任何保证。
5. 没有人有权依赖本白皮书的内容或从中得出的任何推论，包括关于与Demeter的任
何互动或本文所提及的技术。
6. 对于因任何人根据本文件中包含的与Demeter、Demeter平台或Demeter生态系统
有关的任何信息和意见或与任何进一步查询有关的任何信息采取行动而可能产生的任
何类型x的损失或损害（无论是否可预见），尽管有任何疏忽、违约或疏忽，
Demeter均不承担任何责任。
7. 本出版物中包含的信息来源于Demeter认为可靠的来源获得的数据，并且真诚提供
，但不提供任何担保或保证，Demeter就所提供信息的准确性、完整性或适用性做
出陈述。您或您的任何员工、债权人、证券持有人或其他股权持有人或任何其他人不
应依赖它，也不应赋予其权利或作为补救措施。
8. 所表达的任何观点都反映了本白皮书作者目前的判断，并不一定代表Demeter的观
点。本白皮书所反映的意见如有变更，恕不另行通知，且意见不一定与Demeter的
意见一致。
9. Demeter没有义务修订、修改或更新本白皮书，或者对于此处陈述的任何事项或在
此提出的任何意见、设想、预测或估计发生改变，或准确性发生变化，Demeter也
没有义务通知读者或其接收者。
10. Demeter，其董事、员工、承包商和代表对任何人或接收方（无论是出于疏忽、因
疏忽或其他原因而引起的错误陈述），不承担从此白皮书中表达或暗含的，产生的，
包含在内或源自本白皮书或从中省略任何陈述、意见或信息所产生责任或义务。
11. 无论是Demeter还是其顾问都没有独立地核实过任何信息，包括本白皮书所包含的
预测、前景和设想。
Demeter白皮书2019
12. 各接收方要完全依赖其自身对本文主题的了解、调查、判断和评估，以及通过进一步调查
获得的任何信息就任何进一步调查提供的任何信息，并确信内容的准确性和完整性。
13. 尽管尽一切努力确保本文中陈述的事实是准确的，但本文中所包含的所有估计、设想、预
测、前景、意见表达和其他主观判断都是基于截至文件所载日期被认为合理的假设。不得
将其解释为其中所指事项将发生的情况描述。
14. 因为多中风险因素，本白皮书中提到的任何计划、设想或预测可能无法实现，风险因素包
括但不限于技术发展的缺陷、法律或监管曝光、市场波动、部门波动、企业行动或无法获
得完整而准确的信息。
15. Demeter可以为本白皮书中提到的实体网站提供超链接，但是，提供链接并不意味着
Demeter认可、推荐或批准链接页面上的任何材料或从页面获得的任何材料。访问此类链
接网站产生的风险完全由您自己承担。Demeter不承担任何此类材料的责任，也不承担其
使用的后果。
16. 如果分发、出版、提供或使用本白皮书违反当地的法律或法规，则对于该管辖区内的个人
或实体，不可向其分发本白皮书，也不得使用。
17. 本文件仅可在www.demeter.io网址上获得，未经Demeter事先书面同意，无论出于任何
目，都不得将本白皮书重新分发、复制或传递给任何其他人或部分或全部出版。
18. 在某些国家，该白皮书的分发方式可能受到法律或法规的限制。则要求持有本白皮书的人
必须告知自己并遵守这些限制。
19. 任何购买Demeter实用型代币（DMU）的申请人必须阅读并理解以下文件，然后向
Demeter申请购买Demeter实用型代币（DMU）：
a.代币生成披露文件；
b.代币销售协议；以及
c.隐私政策
20. 获得本白皮书之后，本文的接收者同意受上述限制的约束。
执行摘要
Demeter的愿景是确保创建技术先进、智能
的东南亚农业经济。我们的方案旨在研究、开
发和实现可以结合区块链技术、物联网、人工
智能、系统设计解决方案和数据分析下一代农
业企业。所有这些技术的整合都是通过确保卓
越运营、供应链中断和透明度优化任何潜在的
农业商业价值链。
我们致力于研究和测试，实施精准农业技术使 农业企业在瞬息万变的世界中经营。由于
产量最大化，为农民社区的各个层面提供全方 到2050年世界人口将达到100亿，因此预
位和现实的支持，并整体提高粮食效率。 计对农业作物的需求将翻一番。粮食生产
Demeter还旨在在整个企业执行过程中对环 将需要为目前估计缺乏粮食供应的8.7亿
境产生的任何影响最小化。 人口提供足够的碳水化合物、蛋白质和脂
肪。相比之下，由于职业选择、工作性质
、移民等原因，东南亚国家的就业份额和
国内生产总值比重在过去20年中一直在下
“Demeter是一个 降（除泰国外）。令人担忧的情况是，在
未来30年中，全球对食品的需求预计将增
支持区块链功能的农 长60％，因此需要彻底扰乱农业企业以避
免可持续性崩溃。在Demeter，我们坚决
业软件与生态系统， 反对这种提议。
它为整个农业供应链
DLT在整个农业供应链中提高效率、透明
提供突破性的技术嵌 度和信任度以及授予所有市场参与者权力
的潜力是惊人的。该技术具有简化和整合
入式解决方案。” 农业供应链，增强食品安全，降低贸易融
资风险和促进包容性贸易，增加获得农业
金融服务的机会，产生更智能的市场信息
以及为土地保有制度提供更大的法律确定
性的潜力。农业食品和技术产业已经在探
索此类应用。在农业供应链中，交易本身
就具有风险和复杂性，因此依赖于一些中
介机构；而意识较强的消费者对其食物来
源和生产方式的了解程度不高。最终，加
强农场、市场和消费者之间的联系可以带
来更大的收入增长并创造就业机会。
粮食系统正变得更加资本密集、纵向整合且集 中在少数人手中。在某些情况下，可将初级生 产，加工和分销整合在一起；实现大规模加工 的自动化；以及更高的资本和知识密集度。 在本白皮书中，Demeter在区块链和技术改 造的支持下，探索了从整体上将农业供应链最 大化的机会。我们致力于创建和开发启用了区 块链的验证技术，从而可以进行食品安全性和 真实性验证；物联网的实施可以实现更智能的 农业；农民-消费者市场，在其中我们对产量 和公平价格的透明度进行跟踪，共同创建的社 区和金融机构，可以系统地推动社区支持农业 （CSA）农民实现盈利。
当今农业链有关挑战
农业链短缺 食品安全&可追溯性 农业供应链的低效 不成熟的农业生态系统（技术、金融和市场） 食品价格波动 服务缺乏的农民 食物浪费
东南亚在改善粮食安全方面也取得了显着 进展。20世纪90年代初，营养不足率位于 世界最高水平，约为31％，但到2014-16 年，这些比率下降到10%以下，低于其他 许多地区的水平。尽管如此，该区域各国 发展水平存在差异，这意味着粮食安全仍 然是一个重要问题；在2014-16年，该区 域的农业和渔业部门的发展为改善粮食安 全做出了贡献，且这两个部门仍然是区域 政策制定者制定粮食安全政策的关键部分 。这样，农业和渔业政策制定便与粮食安 全目标相互联系。而对于该地区主要农作 物水稻的政策措施尤其如此。但是，对于 某些国家而言，通过市场干预手段实现粮 食安全目标对各部门的发展以及粮食安全 本身都产生了无法预期的后果。
农业链短缺 农业供应链的低效
不断增长的生产需求
食品安全&可追溯性 不可避免的是，在全球范围内随着世界人口的
增加，对农产品的生产需求将会增加。因此，
未来散装货物装卸货场需要管理更多的农产品
健康的，或所谓的安全的食品，是指没有失去 ，为此这些货场需要提高效率。在其地理区域
营养价值的食品，从物理、化学和微生物学角 内运作效率不如其他货场的散装货物装卸场将
度讲都是干净的食品，并且没有变质的。造成 失去业务。货场经营者需要找到更自动化和降
食品污染的因素可能会威胁到食品的安全食用 低成本的方法。
，从而使食品对人体健康产生有害影响。为此
，我们正在努力利用各种资源，防止食物在食
临时工的需求
物链的各个阶段，从收获到消费，受到任何污
在收获高峰期间，货场经常需要雇用额外的工
染。
人3-4个月。这些临时工可能缺乏经验，因此
需要进行培训，也可能产生安全问题。除了会
农民也应该知道，他们应该购买高品质的谷物
增加成本以外，每年雇佣临时工的货场也面临
、种子和复合饲料以培育健康的动物和多汁的
着风险。农产品通常通过卡车或火车运送到散
水果和蔬菜。但所有原材料的真伪并没有得到
装装卸货场。当种植者的卡车将产品运送至货
证实。因此，区块链扮演着重要的角色。如果
场时，收货过程中的延误可能会对货场经营者
农民出售质量不合格的肉类和农作物，这将对
的收入造成一定影响，现场设备的故障也会造
农民和消费者产生负面影响。
成不利影响。
尽管商店代表应该拥有所有相关的文件和合格
证明，但您无法看到食品之前的存放方式以及 排队时间长
是否含有有害细菌。 在一些国家，在高峰收获季节，通过散装装卸
场的产品流量大大增加，而在其他国家，全年
的产品流量更为稳定。对于卡车必须排长队才
能进入的货场，一些业务必将流失至其他运营
效率更高的货场。长时间的排队会增加货场经
营者的其他成本和风险。由于货场的卡车排队
等待，这对闲散的卡车司机来说可能不是一个
安全的环境。根据国家的不同，较长的排队时
间可能会对货场经营者进行罚款。不成熟的农业生态系统
（技术、金融和市场）
在东南亚地区的大多数地方，农村贫困人口仍
然缺乏直接获得金融服务的机会。其中的障碍
包括农村居民与城市金融机构的实际距离，他
们缺乏正式土地所有权或贷方要求的其他硬性
担保，以及他们的主要经济活动、农业的真实
的以及可感知的风险。在基本金融服务方面，
全球数百万农村贫困人口必须求助于当地的放
债人，他们通常利用高利贷代替正规的担保要
求。
此外，传统农业中的农民与产品和投入市场的
联系不紧密。相反，在现代商业农业中，农民
生产的目的是为了赚钱，他们的可销售盈余很
高。大多数农业投入来源于投入市场。
服务缺乏的农民
小农户是拥有或耕种面积不到两公顷土地的农
民-占上游农业价值链的很大一部分。这些农
食品价格波动 户提供了发展中国家大部分地区所消耗食物的
80％以上。在全球5亿小农户中，87%在亚太
价格波动，就食品价格的方向和幅度的重大和 地区。这些农民大多数生活在偏远的村庄，地
频繁变化来看，会对生产者、消费者和国家造 域分散，获得现代农业技术、服务和信息的机
成有害影响。这一现象促使生产者必须谨慎决 会有限。许多现代农业价值链的性质实际上为
定生产内容和生产量。如果引起价格飞涨，低 小农户在改善生活方面制造了额外的障碍。
收入者的购买能力会明显降低，进一步扩大了
不平等现象。 在传统的自给自足的农业中，农民的生产活动
主要是为了满足他们的家庭需求，而其可销售
这种情况可能对各个国家构成威胁，因为他们 的盈余则很低或根本不存在。农业投入也从家
可能面临严重通货膨胀的情况，从而产生无法 庭获得。因此，传统农业中的农民与产品和投
预期的财政和预算影响，进而产生巨大的社会 入品市场的联系并不紧密。
压力。
没有明确的证据表明未来的波动趋势。过去的
经验表明，在价格高位波动期之后，往往会出
现长期价格相对较低和稳定的时期，但是过去
五年中发生的高位波动代表了此类事件的发生
频率、严重性和深度的主要问题。食品价格波动
据估计，全球生产的所有食物中有三分之一被 当产品条件超过适当的界限时，将
丢弃或浪费。在这个近10亿人挨饿的时代，这
控制产品条件并记录在分类帐上，
是不可接受的。食物损失和浪费（FLW）意
味着对劳动力、水、能源、土地和其他自然资
还须记录可能损坏链程序中货物的
源的滥用。 任何人为错误。为了降低声誉受损
风险，将人权和行为守则记录在分
这可能是收获前的问题，如害虫侵扰，或者是 类账上，以示尊重。检测除故意欺
收获、处理、储存、包装或运输的问题。造成
诈行为，并且作为一项交易报告在
粮食损失的一些根本原因包括基础设施、市场
、价格机制不足，甚至缺乏法律框架。由于包
区块链上，同时在区块链网络内广
装不当而在运输过程中压碎的西红柿就是食物 播通知和消息，以便向其他方告知
损失的一个例子。 试图实施欺诈行为的参与者。此外
，区块链将以其众所周知的不变性
和不可撤销性提供连续的信息。
供应链将在很多方面受益于区块链
创新科学。区块链本质上将有助于 为了保证货运的可追溯性并降低错误或欺诈的
风险，参与全球供应链的不同利益相关者之间
提高透明度和可审计性，这将在很
的安全数据共享至关重要，在公共或许可的区
大程度上支持违反货运条件以及人 块链网络内实施数据共享，以确保不信任方之
为错误和欺诈检测（普华永道的一 间的互通和防篡改数据。此外对于信息访问将
份报告证明了全球欺诈的成本，其 实现适当授权，这对将来会产生重要的益处。
中指出，全球有49％的组织表示他 灵活和透明的区块链将实现对分类账数据的回
顾性访问，以便从大量的信息中获益。
们是欺诈和经济犯罪的受害者）。Demeter作为技术解决方案
Demeter作为技术解决方案 Demeter的覆盖范围 可能性&可扩展性 通过Stellar公共链在智能农业中实现区块链技术 区块链上的数据加密和解密
由于全球范围内大规模供应链中涉及的利益 相关者数量众多，它们之间的关系最终变得 复杂。现代供应链管理依赖信任问题，这是 为什么区块链解决方案是必要的并且似乎是 强制性的主要原因。 首先，供应链参与者之间缺乏信任。各方都 需要相信另一方在相互交易中发布和交换的 数据是真实的。不幸的是，事实上并不是这 样，在当代的供应链中，货运失败、人为错 误或故意的欺诈行为很普遍。此外，至关重 要的是，此类系统需要有效地收集有效数据 ，安全地记录数据并向其他几个系统提供准 确的信息。这些过程中的故障频繁发生，因 此，全球端到端供应链系统高度依赖其脆弱 的链接，这种链接会减缓、改变或阻碍信息 流。另外，高标准和端到端集成的缺乏都会 导致利益相关者之间的信息不一致。 各方需要收集并确认数据的有效性，以确保 降低系统性能的完整性和有效性。另外，由 于在当前的供应链系统结构，对有效的信息 流操纵存在限制。由于复杂的体系结构，还 对系统进行了更改，增加了产品可追溯性和 监控等硬任务，这些任务严重影响了性能和 效率。例如，跟踪从原料提取到工厂生产的 准备出售的产品的整个系统已经成为现代供 应链中一个非常复杂的过程。
Demeter的覆盖范围 使用Demeter区块链技术可以极大地加快 和简化有关农业项目融资的决策过程，而 且它将对农业竞争能力和农业发展产生积 极影响。使用区块链技术可以一劳永逸地 改变农业领域。 区块链技术是解决与农业有关的所有问题 的强有力选择。与我们的任务和面临的挑 战相一致，我们分割并指导整个火热的供 应链，并探讨中断的可能性。数据交换的 统一透明环境使专家能够高效地安排供应 链——建立供应商、运营商、客户之间的 联系。对于保质期短的食品来说，这是一 个非常迫切的问题。 我们将区块链技术、物联网、机器学习融 入农业部门，将为所有的农民解决非常大 的问题——这将简化商品销售流程，并且 从该链中淘汰所有中介。 Demeter的区块链可用于制造和食品加工 的认证，这将对认真负责的供应商提供保 护。此外，区块链比传统的认证系统更便 宜、更可靠。农民将其产品的所有信息输 入系统后，任何人都无法更改或复制。不 可能通过两个相同的数字认证出售一袋大 米，系统会检测到假冒商品。
IoT & Sensors Implementation
on the Field Machine Learning & Analytics
- Temperature, pH & other soil data Overall Intergrated DEME Bidding Platform Tech
Field Monitoring System - Crop Related Predictions
- Pesticide and water spray data - IPFS Storing - Stakeholders dashboard
collected from IoT devices - Sensor Layer - Blockchain ledger
- Middleware Design -
- Weather & wind monitoring data - Ad Placement
- Overseeing Farm Inventory - Communication Layer - Pridiction API
- Cloud & Application Layer DEME Market Place
- Profit Distribution Planning DEME Finance & Partnership
Drones & Crop Monitoring - Clarity on Payments - An open business alliance
- Soil Quality Analysis & Control - Fairness & Transparency in Crop Prices
Weather Station drawing uniformity in supply DEME Market Place
- Seed Planning Planting Patterns - Product Registration
- Predictive Weather Insight chain interms of resources, - Based on yield from actual land & farms
- Market Data Identification & Study information & standards
- Weather Control Process by corporation (DEME Store)
Materially Engineed - Preventive Counter Measures - Agritech patent & funding infra - Collaboration with chains (7eleven,
Polination Technology - Crop Insurance - Creation of a new Agri Finance mynews, familymart etc)
- Synthesized Ionic Liquid GEL (ILG) Phenomenon that includes - Real time tracking
- Functional Fibres Machine Learning & Analytics (sharing of agri related tech & - Sophisticated logistics
- Artificial Polinators - Precise Predictive Yield & infos, merchants, logistics,
RFID Sensors & Tracking - User get access to all range of products
Overall Price Aggregation storage, microfinancing,
- Identification of Specific Yield - Market Data Identification & Study
- Food Safety Retracibility insurance, 3 point payment
Farming & Robotics
- Quality Assurance structure, discounts, credits etc.)
- Spraying & weeding Robots
- Source Identification - Agri related Subsidies
- Fruit-Picking & harvesting Agricultural Finance
Agricultural Finance - Steps Tracking Mechanisms
- Automated Information of - Recorded Transactions
Satelite Imaging Sales through Smart Contract DEME Verification
Smart Warehouse - Conduct Audits
- Plantation & land planning - Data Collection & Syncrinized for
- Fully Automated Processing - Tax Calculations
- Multispectral & Geophysical Imagery Optimization
Factory for Related Crops - Compliance
- Data Collection & Syncrinized - Integrated & Humanized Mechinary
for Optimization - Supply Chain Tracking Mechanisms
Smart Green House
- Experimental Green House Enclosure - Integrated & Humanized Blockchain Implementation
- Multilayer Smart Farming Mechinary - Food Recall Mechanism &
- Controlled Enviroment Farming Data Storage
DEME Verification Agricultural Finance Machine Learning & Analytics RFID Sensors & Tracking Blockchain Implementation
- Supply Chain Tracking Mechanisms - Steps Tracking Mechanisms - Crop Related Predictions - Identification of Specific Yield - Smart Contract processing incoming data
- Recorded Details of Process - Recorded Transactions - IPFS Storing - Mark of Individual or Selective Batch for - Data hashed and saved on blockchain
(Crop yield, source, process, points, location etc.) - Conduct Audits Identification - Installation of Sensors across all supply chain
- Overseeing Farm Inventory - Installation of Sensors across all supply chain - Overseeing Farm Inventory主要优势 Smart Contracting
Demeter provides seamless contract solutions
between farmers, brokers, buyers and logistics
供应链追踪与自动化 providers. Demeter’s aim is to provide the best
automated software solution for creating
Combining user-friendly native mobile applications commodity contracts and freight contracts.
for farming and logistics operations with a powerful
web application for business administration, The Demeter system will enable buyers, sellers and
Demeter provides end-to-end visibility of the freighters of commodities to interact in a
agricultural supply chain. Demeter enables farmers, blockchain-backed environment, ensuring both
brokers and logistics companies to transfer data and sides of the sale are protected. Demeter will create
automate the delivery process, from the paddock to the first global marketplace for buying and selling
end user. physical agricultural commodities using blockchain
technology.
As each load is picked up and delivered, data is
collected and time-stamped at each point along the Record keeping and proof of origin
supply chain. All parties are updated in real- time as
each transaction takes place. Through this process, As commodities move along the supply chain, proof
Demeter improves productivity, increases visibility, of origin can be established by creating an
controls stock, automates freight orders and immutable blockchain record of the journey from
eliminates manual paperwork. paddock to plate. Key supply chain participants as
well as supply chain nodes owned and controlled by
each of these entities (such as fields, silos, trucks
Information and data visibility and delivery locations) are recorded at every stage.
With Demeter, users are empowered to make
Demeter also records key commodity data including
decisions supported by accurate information and
the weights, types, varieties, grades, specifications
market data. By providing visibility of commodity
and inputs. All users get a complete picture of the
stocks, users know exactly how much product they
products they are purchasing, as blockchain allows
hold, where it is going, when it is getting there, and
for a fully transparent and traceable supply chain.
what its value is. At every stage of the supply chain,
users can be confident that they have the
information required to maximise their bottom-line.
As the end-to-end supply chain can be tracked and
managed through a single, industry-wide system,
buyers and end users also benefit from
improvements to data accuracy and completeness.
Should contamination or any other product safety
issues occur, affected products can be quickly
identified and recalled without disrupting the entire
supply chain.FinancIal BenefIts Insurance
Through Demeter, approved insurance companies
Reducing the cost of capital
will get unprecedented visibility of the farmer’s
Each year, farmers are financially constrained stock in field, stock on hand and stock in transport.
through the inability to obtain fast and affordable Emerging ‘Internet of Things’ (IoT) solutions for
inventory finance on products that have been heavy machinery and storage in the agricultural
harvested and are awaiting sale. In traditional sector also provide additional opportunities to
agricultural supply chains, there is a lack of visibility enhance the data recorded in Demeter. By gaining
over stock on hand, the quality of that stock and access to live, accurate, immutable data, insurance
true market value. Consequently, financiers are companies are able to effectively assess claims, offer
reluctant to provide inventory finance to farmers, tailored products to customers, disperse payments
and are constrained by the types of inventory on claims, monitor risk, identify suspicious behaviour
finance that they are prepared to offer. Some larger, and improve fraud assessment. In return, farmers,
well- established businesses get access to such buyers and logistics companies will be able to select
services, but the majority miss out. from a wider range of insurance products with more
accurate and cheaper risk premiums.
Demeter seeks to make lending against stock on
hand more accessible and cheaper for farmers by
providing significantly enhanced visibility over farm P2P Lending
inventory and reducing the risk exposure of Using Demeter, farms of any size will be able to
financiers. With Demeter, banks are able to see the connect in a secure peer-to-peer (P2P) lending
real-time ‘position’ of the farmer, as well as a history environment that enables businesses with a cash
of custody, all recorded and authenticated by the surplus to offer short-term loans to those needing
blockchain. In addition, financiers are able to see any access to short-term capital. The Demeter platform
payment guarantees (future sales backed by a smart enables like-minded farmers to agree on lending
contract) that the farmer has entered into. By arrangements that overcome traditional overdraft
obtaining previously-unavailable information about loans, driving down the cost of agricultural financial
the farmers’ live position, financiers are able to de- products, while ensuring that any interest paid stays
risk their lending using Demeter’s data. within the industry.
Improving Cash Flow Demeter improves the cash flow of supply chain
Poor cash flow is responsible for the failure of up to participants by enabling businesses to finance their
90% of SMEs22, and agricultural supply chain operations by leveraging forward (blockchain
businesses are no exception. In the day-to-day backed) contracts with current customers. Using
operations of their business, agricultural supply Demeter token, suppliers can increase liquidity by
chain participants are affected by impeded cash using futures contracts to finance their immediate
flows. To ensure a predictable and reliable cash flow, operations (refer to the Token Economy section).
businesses attempt to match receivables to
payables. Unfortunately, as agricultural commodities
move through the supply chain, the amount of
outstanding debt accumulates. Consequently,
38.2% of businesses acknowledge that if they were
to encounter a problem with cashflow, they would
elect to pay transport suppliers late or miss
payments altogether.
Demeter improves the cash flow of supply chain
participants by enabling businesses to finance their
operations by leveraging forward (blockchain
backed) contracts with current customers. Using
Demeter token, suppliers can increase liquidity by
using futures contracts to finance their immediate
operations (refer to the Token Economy section).We embraces Stellar solves a consensus protocol
The Realisation of Blockchain problem that plagues other blockchains or digital
Technology in Smart Agriculture ledger technologies which by far the most reliable
through Stellar Public Chain Practical Byzantine Fault Tolerance (PBFT). Upon
implementation of Stellar, we needs 66 percent of
In order to realise full accessibility potential and the validators to agree on transactions to attain
reliability, where new organizations can join and quorum or consensus. In order to maintain the
extend agricultural financial access to unserved validity of the network, the number of malicious
communities. The challenge for such a network is nodes needs to stay below 33 percent, where the
ensuring participants record transactions correctly. platform will be free from blocked states—in which
With a low barrier to entry and worldwide reach, consensus is no longer possible—unless participant
providers won’t all trust a single entity to operate failures make it impossible to satisfy trust
the network. A compelling alter- native is a decen- dependencies. SCP is the first provably safe
tralized system in which participants together consensus mechanism to enjoy four key properties
ensure integrity by agreeing on the validity of one simultaneously:
another’s transactions.Demeter aimed to build our
own public chain in the next 5 years that will provide Decentralized control
ultimate flexibility, relevant to our course. While Anyone is able to participate and no central
experimenting on building our Demeter consensus authority dictates whose approval is required for
algorithm, Demeter development team are also into consensus.
speculation of future user based balance of security,
fault tolerance and liveliness based on the metadata Low latency
from the initial implementation. In practice, nodes can reach consensus at timescales
humans expect for web or payment
transactions—i.e., a few seconds at most.
Stellar is a blockchain platform that is
geared towards banking and Flexible trust
cross-border FINancial transactions. Users have the freedom to trust any combination of
parties they see fit. For example, a small non-profit
It intends to address issues with may play a key role in keeping much larger
remittances, mobile payments, and institutions honest.
micropayment. A big objective of the
Stellar network is to provide Asymptotic security
affordable financial services at a Safety rests on digital signatures and hash families
lightning pace. whose parameters can realistically be tuned to
protect against adversaries with unimaginably vast
computing power.
Demeter embraces Stellar consensus protocol (SCP),
a construction for FBA. SCP’s safety features is
optimal relevant to our utility, where it guarantees
agreement under any node-failure scenario that
admits such a guarantee serves as a main
consideration for Demeter as all stakeholders
interests are at stake. DEC ENTRALIZED LOW L ATENC Y
In the case of agricultural related distributed
networks, this process is a little more complicated. In
public blockchains, anyone can add (or attempt to
add) information to the ledger, and anyone has the
right to verify if that information is or is not true. For ASYMPTOTIC SECURITY SAFETY PREF ERENC E
that reason, the network must reach consensus, a
general agreement that the data is correct.
However, that is not doable with our initial ERC
consensus, because the users and validators of the
ledger are unknown, and hence cannot be trusted.v4
Q(v1) = { {v1,v2,v3}}
v2 v3 Q(v2) = Q(v3) = Q(v4) =
{{v2,v3,v4}}
v1
Fig. 2. v1 ‘s quorum slice is not a quorum without v4.
3/4
v1
v2 v3 v4
Top tier slice is 3 out of
{v1, v2, v3, v4}, including self
2/4
v5
Middle tier: slice is self + any
v6 v7 v8
2 top tier nodes
2/4
In an FBA system, nodes broadcast to Leaf tier: slice is self + any
v9 v10
each other on which quorum slices 2 middle tier nodes
they trust.
Fig. 3. Tiered quorum structure example
Nodes individually determine which
quorums to trust and build their own
quorum based on the information they v1
have at hand.
The ideal situation is to have quorum v6 v2
v2 v3 v4
intersections or quorum overlaps. This
ensures there is consensus throughout Q(vi) = {{v1,v(i mod 6)+1}}
the network. If there are no v5 v6
intersections, then there will be v5 v3
disjoint quorums which can lead to the
recording of contradictory v4
transactions. It is the biggest risk of
using the Stellar network. Fig. 3. Cyclic quorum structure example
Stellar Consensus Protocol uses FBA to have a more Quorum Slices
decentralized system. The network is more open to In a consensus protocol, nodes exchange messages
new nodes and FBA also makes the network more asserting statements about slots. We assume such
reliable in case of failure. assertions cannot be forged, which can be guaran-
teed if nodes are named by public key and they
Federated Byzantine Agreement digitally sign messages. When a node hears a
sufficient set of nodes assert a statement, it assumes
no functioning node will ever contradict that state-
ment. Such a sufficient set a quorum slice, or, more
concisely, just a slice. To permit progress in the face
of node failures, a node may have multiple slices, any
one of which is sufficient to convince it of a state-
ment. At a high level, then, an FBA system consists
of a loose confederation of nodes each of which has
chosen one or more slices.
Quorum sliceThe most essential features of Stellar
Data encryption and decryption
adapted Demeter blockchain in the
following list:
on the blockchain
1. The time of transaction confirmation is swift. It Since the information on the blockchain is public, it
takes from 3 to 5 seconds. is accessible to everyone; however, there are
2. The Stellar network operates several thousand numerous situations where it is advantageous to
transactions per second. keep information in the agricultural trading
3. Stellar operates with any currency, asset, or token. ecosystem confidential, especially identity
4. The network uses Stellar Consensus Protocol information and sensitive data. This requires the
(SCP) which makes currency not-minable. So the Demeter’s ecology to store data off the chain and
Stellar (XLM) mining process is not available. verify it on the chain and requires a high level of
5. The blockchain enables using of Smart Contracts encryption built into the system.
and Multisignatures.
This type of operation are expected to require
virtual machines (VM) to be optimized before
Researchers found out that information is validated on the main network. The
the PBFT of the Ripple protocol was VM will be redesigned to reduce the high costs
not fault tolerant enough. Also, associated with encryption and decryption.
Numerous computational encryptions and
the selection of validators makes
decryptions will be conducted to protect the privacy
PBFT systems become centralized. So of users, for a small operational fee.
PBFT was replaced with Federated
Byzantine Agreement (FBA).
In an FBA system, there is no need for
predeFIned validators.Nodes make
the decisions individually about
who to trust.
It decentralizes the system. Instead
of the whole quorum or a preset
number of nodes, FBA systems use
“quorum slice” or a subset
of the quorum.Demeter Implementation
Demeter Implementation Product Traceability & Tracking Marketplace for Agricultural Products Supply chain, Information & Efficiency A co-creating community Deme Finance
Demeter Implementation
Product Traceability & Tracking
Deme Verification enhances the ability to quickly pinpoint potential sources of contamination to efficiently
prevent, contain or rectify outbreaks. Transparency in Deme Verification enabled food traceability can validate
and authenticate food origin and improve brand credibility. Additional benefits include fraud prevention and the
ability to better tackle outbreaks through prevention methods that can help minimise food testing expenses
and improve margins.
Logistics Agricultural Logistics
Supply Chain
Network
Supplier 1 Supplier 2 Supplier 3
Intelligent
contract
Decentralized Decentralized
agricultural agricultural
commercial commercial
resource resource
suppliers demands
Blockchain
Network
Revoke Request
Deme Verification focus on linking agricultural shipping and monitoring processes using a shared, decentralised
blockchain ledger adds value to agricultural products, because machinery, crops, and livestock can be traced by
the recipient to prove quality and ethicality and therefore assign greater value.
Producers, especially in the developing world like the SEA region, can also bolster their revenues by ensuring
though blockchain technology that they are participants in a supply chain that targets a demographic willing to
pay more for provenance and quality. From food provenance to commodity tracking and a related role in grain
trading, the projected role of the blockchain for agricultural supply chains is significant.Tracking of food items in the Conditions at the food
supply chain production facility
Demeter blockchain technology enables the We made conditions at product sites, like factories,
tracking of food packages, or any item to which we fields, or fishing boats, labor conditions,
place an unique identifier such as a barcode, QR environmental conditions, quality control in
code, or a RFID transmitter which is currently under production which is hard to verify possible. Deme
testing in our R&D lab. Our integrated blockchain Verification specifically tracks falsification or
solutions can easily regulate who gets access to the misrepresentation of conditions in production. A
information about the products. Integration digital representation of the conditions such as a
between regular transaction data and more complex photo or a digital file can be stored at the production
data such as sensor data of temperature and facility, or in a mobile app. A verification of the same
humidity can be directly connected to the product. files, a digital fingerprint in the form of a hash, is
published in a blockchain. Time and location cannot
Tracking of food volumes in the be manipulated since it is recorded in the blockchain
supply chain where a non-editable timestamp of each entry is
required. Apart of our QC standard is to make
Deme Verification made it possible to track the total
random inspections an inspector can then verify
volumes bought and sold for each participant in the
that the photograph corresponds to the actual
supply chain on both individual and bulk scale. We
conditions at the facility, the workforce, and that the
ensure no central party needs to be trusted in order
outcome/ production corresponds to the one
to overlook the data, while still allowing volumes to
reported to the blockchain.
be transparent for everyone in the chain.
Farmer / coops CONTACT BUYER Meeting NEGOTIATION SAMPLE CHECK SALES CONTRACt ADVANCE PAYMENT
BATCH CHECK SHIP CUSTOMS TRUCK Product load
UNLOAD TRUCK quality check Delivery Final Payment Agro-industry
Deme Verification framework allows business process specialists to make full use of blockchain potential. For
example, the “Unified Batch Tracking” template defines a basic integration workflow which can be customised
visually. All required Smart Contracts for a specific food supply chain blockchain are then generated automati-
cally. Our framework brings business integration to the supply chain, and automatically creates Smart Adapters
to connect the smart contracts to the existing system landscape. Also, business case specific Smart Queries are
created automatically as well. Smart Queries allow to visually monitor the process and all data flowing in a
real-time manner, fulfilling business intelligence needs as well as legal demands.Marketplace for Agricultural
Products - Deme Marketplace
System architecture of encompassing market place actors
Increasing INPUT - Supply
Competition
Expansion of Technical Chemical Biological
supply System System System
Cereal
based Internet Competition
products
By-product;
biomass, Database
biogas Deme
Animal
products Market Offers
place
OUTPUTS - Demand
Information
Competitive
procurement to
support farmers
More favourable
condition
User
(Producers) New tender
Demetoken
R&D&I
Management
Demetoken
Information
System
Demetoken
Innovation
System
Plant Typical Powerplant processing,
Producing livestock plant-producing
Farms farms renewable energy
The relationship between producers and input providers is quite determined in the field. It means that input
users are connected tightly by the agency of manufacturers and traders and their relationship is determined by
traders’ profit maximisation. In this relationship a producer has hardly any possibility to compare complete
supply portfolios and validate suppliers’ most favourable proposals. The concept, which is going to be made,
enables the producers’ common tender announcement. This could be resulted in a more favourable position in
the tender announcement through quantity increase of claims arisen in one transaction by competition the
participants in the supply position. Other aim of this concept is to induce the system of innovation relating to
the inputs.
Central element of development is the database, which is the basis of the Internet market field. For users
(producers) the market field collects proposals as well as helps to write procurement tenders and sales tenders,
hence it fosters competition of suppliers and purchasers. Producers can achieve more favourable positions by
this system in terms of procurement price level, quality and other product qualities regarding their input
materials (technical systems, chemical materials, biological products).Despite the fact that participants in the supply Considering structure of producers, they can belong
market will compete with each other, they will have to different fields. Plant production and stock raising
also advantages since supply market of the input agriculture can be emphasised (these can be also
products provided by them will be more transparent mixed plant and stock raising agriculture). The
also for them and can be planned in an easier way energy plant process factories using products of
and specification of participants in the market will be plant production agriculture produces energy out of
simpler. Therefore, efficiency of their trade will agricultural renewable materials. By using the
increase. system, these factories can enter by their claims
regarding input materials for procurement while
The number of participants in the supply can they are interconnected no matter where they are
gradually increase since the system expects new located or how big or small they are. Cooperation
members. As a consequence, competition can can extend to harmony concerning common utility
increase, number of products in supply can increase of technical devices as well as accomplishment of a
and their quality features improve. more effective access to money assets. Coordina-
tion of intensity regarding production can be accom-
By using the Internet market field, it will be the plished on a higher, more comprehensive level by
producers on the first place who will have participation of more producers.
advantages since their agriculture can be planned in
an easier way and can be transparent. Besides the Moreover, harmony of supportive systems and their
faster information flow, they can achieve decrease optimisation in accordance with their different
in their cost. Quality assurance and standardisation stimulating measures could be more accurate and
guarantee utility and marketing of quality products. deeper professionally. The information system that
is going to be established stimulates producers to
By inducing this system concept, cooperation cooperate with each other. It provides conditions of
among producers will be fostered. Cooperation effective information flow by covering all of the
solutions foster use of results achieved due to users. It provides a common base for application of
modern solutions and innovative developments. innovation systems. Coordination of R&D&I tasks
Apart from production devices, access to money can be accomplished mutually by covering a bigger
assets can be improved. The method how to obtain production structure (Chart 2).
market information can be developed, as well.
Besides producers and distributors, the system
provides advantages also for the government,
authorities, experts and other participants of the
R&D&I market.
A field informatics system can be accomplished by
which we could get an exact picture and data about
utility and time-quality-quantity features of inputs.
Collection of data can be provided for the
supportive market forecast systems (estimation of
production on the basis of structure of inputs and
products). Structure of costs and marketing can be
monitored at traders and producers implied in
the system.During our system concept we are going to establish Tasks of the organisation dealing with external
such a market field, which can be considered a trade information flow have to be specified since such an
and production system in agriculture and its aims electronic system should be constructed, which is as
take the following stipulations into consideration: good and useful as possible, user-friendly and could
be based on the GIS structure that operates in the
1. Producers autonomous and equal people/organi- country (e.g. systems for land registration, systems
sations, which could have the best situations to for animal registration). This system could maintain
make decisions. the conventional forms for information flow, such as
presentation and training. The production guidance
2. Market relations are a key element and activities system providing information can be well connected
as well as production have to meet the requirements to other integrated guidance structures, such as
set by the market. logistics, marketing organisations.
3. The system has to meet the market and all of the Suppliers may also derive numerous benefits using
stipulations arisen during its operation, such as the system due to the concentrated presence of
environmental regulations and support. These stipu- demand, the permanently updated profiles of
lations determine conditions of operation instead of groups their marketing activities target at and the
the system of operation. fact that their operation becomes predictable. At the
moment, the concept is developed only
4. The system should foster the producers, should theoretically, its implementation in practice requires
foster more successful production and must not state support.
restrain them. Hence it should provide market
advantages at all of the elements of the production The system is a knowledge-base which is jointly
(regardless the size of property and production being built by each participant through their
system). comments on specific products, various online
activities and most importantly through their
In the case of a production guidance system, the purchases. As a result, the system is able to reveal
method establishes horizontal development permanent monitoring relationships mapping and
directions “spontaneously” since more than one tracking regional differences always indicating the
partial elements of the product path can be the current situation.
same during development of the activity of which
management can be the same as well. The employment of the electronic marketplace
primarily offers benefits for the users (producers)
since their production activities become more
transparent and predictable. As a result of a fast
exchange of information they are able to reduce
costs while the use and sale of quality products are
ensured through quality assurance and
standardisation.Supply chain, Information & Modernising Farm Management
EFFIciency Software (FMS)
The global farm management software (FMS) market
is expected to expand to $4.22 billion by 2025. An
Overseeing Farm Inventory In order anticipated 50% growth in demand for agricultural
to prevent post-harvest products by 2050, coupled with water shortages
In order to prevent post-harvest losses, farmers and stagnation in methods to expand crop yields
must be proactive in monitoring their crop storage means that leaps and innovation in farm
techniques, ensuring that CO2 concentration management software represents a key area of yield
remains below 600 parts per million to prevent enhancement.
mould growth and infestation. Demeter beta
sensors are being produced that potentially detect The 2017 FMS market was $1.5 billion, and a
the potential for losses 3–5 weeks earlier than projected annual growth rate of 7.6% between
traditional temperature monitoring techniques do. 2017 and 2021 could be plausibly accelerated with
With an estimated 52% of the nation’s essential the widespread adoption of blockchain technology.
fruits and vegetables being thrown out due to Demeter plans to integrate farmers with the likes of
mismanagement at some point along the supply sensors, drones, and artificial intelligence into their
chain, and as much as 34% being ruined before it agricultural operations, they will see that a store of
even leaves the farm, better tools for oversight of data kept on the blockchain allows them a greater
farms’ fruits of labor is overdue. level of prominence and differentiation among their
competitors. Deme Verification and Deme
Demeter made it easily accessible for all players in a Marketplace promises to slice the cost of
given operation will provide more seamless transactions between agricultural suppliers, as well
communication regarding what needs to be done, as inventory costs by providing more effective
whether that means harvesting crops, making real-time monitoring of machinery and crops.
storage-related adjustments, ordering new
equipment, or otherwise. Agriculture Tech IoT Optimisation
The average efficiency index for small farmers is
Enhancing Agricultural 85%, and 91% for large-scale farmers. There are
Supply Chains several factors that dictate these figures. 2012, a
year of uncommonly extreme weather conditions,
Study shows that the adoption of a single
exemplified the costs that can arise when adverse
technology in agriculture, on average, results in a
conditions hit, as that year a record-breaking $17.3
correlative increase in a farm’s profitability of as
billion in crop losses occurred in the United States
much as $43,000. Another report suggests that the
alone. From 2001 to 2010, the average annual crop
adoption of certain agricultural management
loss was $4.1 billion. While natural conditions are
technologies will produce as much as 70% higher
unavoidable, Mother Nature represents a persistent,
yields on existing agricultural land. The potential
unavoidable threat that has led more farmers to turn
increase in value of supply chain-specific
to technology to maximise their controllable yields.
technologies in agriculture is less clear, but a boost
in value is certain. Demeter aimed to link agricultural
Demeter IoT-linked technologies, such as our pH,
shipping and monitoring processes using a shared,
temperature and soil sensors, materially engineered
decentralised blockchain ledger adds value to
pollination technology, drone deployment, satellite
agricultural products, because machinery, crops, and
imaging, smart green house etc are directly
livestock can be traced by the recipient to prove
improving the way that agricultural operations are
quality and ethicality and therefore assign
run. Along with the likes of machine learning,
greater value.
Demeter has given farmers greater insight than ever
into the conditions that are most conducive to high
yields, smooth operations, and risk mitigation with
our app based CRM system that are customised to
the optimal utility of the parties involved in the
entire supply chain. Our blockchain serve as a
decentralised storage locker for real-time data on
crop quality, which can be utilised by farmers as well
as their supply chain partners to increase the quality
of products and clarify provenance systems.Fair Pricing
Weather conditions, inelastic demand, inelastic supply, and the conditions of the global market all impact the
fact that most farmers’ incomes and commodity prices are extremely volatile. Deme Marketplace are published
and meant to change the accessibility and control of lifestyle, and the wealth of information that could be
provided to farmers via a blockchain platform would help decrease the chances of famine, while helping them
maximise the boom times. Our blockchainlinked mobile store of data about transaction trends, global market
demand, the stock price of commodities, and beyond, farmers are able to negotiate fairer prices, especially in
nations where internet access is rare and outside data is difficult to come by.
A co-creating community
Demeter community-supported agricultural operations bring together members of a community, who pledge
to support a farming operation financially in return for fruits, vegetables, or whatever else a farm may produce.
These operations are on the rise, with 54% of CSA managers expecting to see an increase in their sales over
the next two years. This is due in part to a diversified customer base, with 71.5% of respondents expecting
increased sales to schools, 65% anticipating increased sales via on-farm retail markets, 60% projecting
increased sales to restaurants, and 58% foreseeing increased sales to grocery accounts.
TEC H N ICA L FA R M ER S
ADVIS OR S
New farm products Environmental
& services stewardship
CO M M U N I TY- ba s e d
Eco - a g ri cu l tu re
New farming New production
skills partnership model
PROFES S ION A L L AN D - H OLDER S
CON S ULTAN TS
CSA farmers are also more likely to be younger, which means that they may be more inclined to embrace
blockchain technology, could it prove to be an asset to their operations. Some proposals for blockchain in CSAs
include the tokenising of shares in community farms for easier sale and the ability to reward volunteer labor
directly with shares, and minimising food waste through sensor-based crop quality tracking.
PR O C E S S I N G
SU PPL I E R S PR ACTI TI O N E R S
Enhanced product New community
diversity capasity
Co -Fa c tor y i n th e
Com m un i ty
Enhanced Producer/ New processing
Consumer resposibility partnership model
BU S I N E S S CU STO M E R S
ADVI S O R
Demeter co-agriculture model aims to achieve an agricultural productivity level that sustains a viable local
economy for the community while adopting nature-friendly production and farming methods. Mixed farming
techniques are also researched and planned to create more diverse, productive and ecologically-enhanced land
use system at the South East Asian region. The model involves building a partnership among farm operators,
ecologists, agricultural experts and land holders in order to incubate a new mode of sustainable agriculture
model suitable for the region.
Demeter also explores on the possibility and model for a culture of co-factory due to the lack of processing
support is one of the challenges in SEA’s agricultural development. A new form of crop processing model is
being developed to facilitate the crop production of Malaysia and, most importantly, to explore the
socio-economic sustainability of local crop processing industry. A chain of Production-Processing-Marketing is
formed by engaging farmers, producers, marketers and customers in the development of new farm products.
The partnership could enhance production efficiency, and also promote stronger producer and consumer
responsibility for our society.Deme Finance
Beyond directly addressing an unmet need for affordable credit among rural grassroots businesses, Deme
Foundation demonstrates the bankability of this long-ignored asset class so local financial institutions will enter
the market. Agricultural Fund provides loan guarantees and risk sharing to local banks with the dual
objective of
1. Attracting local capital providers to this underserved market and
2. Getting them to use export contracts as collateral instead of requiring fixed assets. Over the course of its
four-year partnerships with local financial intermediaries, Agri Fund aims to shift standard practices within
commercial banks so that they serve rural businesses in the missing middle on a large scale.
Deme Finance operates under the umbrella of Deme Foundation based in Singapore focusing on the elevating
the smart agriculture sector. Deme Foundation was established in the mid of 2019, with the aim to reach $30
million in annual credit guarantees during an initial phase of 2019-2025. Target products include durian,
pineapple (MD2) and many more.
S T R AT E G I C L EAD PIPE LINE
P L AN N I N G GENERATION
Initial Transaction
Define Portfolio Referrals REVIEW PRESENT Structuring
Due Due
Objectives OUTREACH CONTACT Origination VISIT CLOSE
& Research APP MEMO
Diligence Diligence
Certifiers
Buyers
Multilateral
Agencies Internal
Committee
Co-Lenders Leads Prospects Candidates APPROVALS
Private Investment
Donors Committee
Technical
Assistance
Providers
RENEWALS CLIENTS
Direct
Inquiries
FINAL
REPORT TRACK DISBURSE
M ONITORING SE RVICING
Sources of Funding
Deme Finance loan fund is comprised of 1) equity that the organization has accumulated from operating
surpluses and 2) debt in the form of three-five year loans issued at 0-4% interest by private foundations,
individuals, corporations, public agencies, and religious organizations.
Sources of Funding
The most common type of loan is trade credit, which is available for up to one year and oriented around a
production cycle such as a harvest. Trade credit loans are typically used by borrowers to purchase product from
their farmer and artisan members or suppliers and to cover costs during the months between purchasing raw
product and receiving payment from buyers. Deme Finance also offers long-term loans that extend up to five
years and are used for investment in equipment and infrastructure and for general operations. Interest rates
range from 9-10% per annum for loans up to one year and 10-12% per annum for long-term loans, and all loans
have a closing fee of up to 1%.Lending Process How the model works
Deme Finance identifies new clients through The implications of providing finance through an
referrals from partners (e.g., buyers, clients, established value chain for a business, its buyer, and
certifiers) and direct inquiries from prospective a third-party lender are described in the following
borrowers. It screens prospective borrowers based three scenarios.
on their social and environmental impact and
financial solidity, and visits those that are a strong fit Scenario 1:
with its lending criteria. During and after the field Six month trade credit loan. $50k - $100k
visit, it gathers information, evaluates the viability of
loan proposals, structures terms for the deals, and Scenario 2:
presents those that meet its requirements either to Nine month trade credit loan
an external Investment Committee or for internal Deme Finance issues a loan under the same
approval based on review policies set by the structure and terms as in Scenario 1 but three
Investment Committee. Upon approval, Deme months earlier. The loan is to the association, which
Finance completes closing documentation with both remains the obligor throughout the course of the
the borrower and the buyer (see description of loan. In the short term, the loan is used to increase
lending model below), makes disbursements to the the pool of capital in its internal credit fund and
borrower, and monitors the loan until it is repaid in enables it to issue short-term microloans to its
full. Borrowers in good standing that apply for a loan members at rates well below those charged by local
in subsequent years are considered “renewals.” They moneylenders. These microloans are repaid to the
enter the process at the “candidate” stage and are association in the form of a deduction on the
reviewed using a streamlined approach that payment farmers receive when they deliver their
maximizes efficiency while still managing risk. coffee in Months 4-6.
Scenario 3:
Eleven month trade credit loan
Buyer issues a purchase order for $300,000 at the
beginning of the season and the borrower applies
for and receives a loan for $180,000 to complete
this transaction. Over the course of the season, the
buyer revises its sales projections, determines that it
will need additional volume, and issues a second
purchase order for $200,000 in Month 5. At this
point, the harvest is already in full swing and the
farmer association must find cash immediately to
purchase more yield from its members, who would
otherwise sell excess supply on the local market at a
lower price.Token Economy
Token Economy Demeter Ecology Initial Fundraising Use case Fund Distribution Token Distribution Token Utility Wallet
Demeter’s coverage Oracle machine puts the IoT data
on the blockchain
The IoT connects all the agricultural equipments and
The Demeter public chain is designed to create a related information to the chain, and the Oracle
decentralized agricultural trading network using machine provides automatic transaction and energy
blockchain technology. The trading network can transportation solutions usingblockchain
provide the infrastructure necessary to address all technology.
the shortcomings of the agriculture industry
discussed in the previous chapter. These industry The Oracle machine will be used to import
shortcomings, as well as the business needs of the information from the real word to the blockchain.
agricultural trading network, are highly industry Blockchains are unable to directly upload external
specific and are not addressed by general blockchain information; therefore, there is no direct method to
technologies. Demeter public chain is a new public verify the conditions required to trigger a smart
chain system, with unique technical characteristics, contract. The Oracle machine provides the
designed to address the unique problems faced by infrastructures enabling the fulfillment of the
the agricultural industry. required conditions. The smart contract condition
parameters are variable and may include
Demeter will use a double token system. Where temperature, completion of payment, energy price
DEMT highlights the nature of equity and is the alterations, etc.
ownership certificate of the project, where the
investment of underlying assets according to market The blockchain can store the key data of all the
valuation such as ownership of plants at the current nodes and parameters within the network, such as
level are made possible. The DEMU highlights the energy flow, scheduling, and settlement payment
nature of intra platform circulation. DEMU is also data.
made possible for transaction within our Deme
Market for example, a farmer buy and owns DEMU Blockchain can assist with the decentralized
in accordance to current coin price, where DEMU decision making used for energy distribution.
he/she owns will be directly usable in our market Decentralized decision making depends on the
platform, procuring stocks and yields with an intend- coordination of various nodes and scheduling
ed discount. Also he/she can trade DEMU within modules within the distributed energy system and is
the licensed exchange, creating a unified investors responsible for ensuring the continual efficiency of
defined market for agricultural development. The the entire system.
value is relatively stable and suitable for payment.
Both DEMT and DEMU made swappable without The agricultural transaction data on the blockchain
charges within our Demeter App. cannot be falsified, largely solving the transaction
trust problem, reducing the credit risk, and
DEMT will be issued on the Demeter public chain, improving the credibility of the energy transaction
and its security and credibility will be guaranteed by participants.
company’s underlying assets (land, trees, yield etc)
and/or other independent agencies.
The Demeter public chain, optimized for the agricul-
tural industry, has the following technical features to
support specialized energy industry application
scenarios:Hierarchical and high frequency trading in the microgrid market The result is the ability to perform multiple complex operations at the sub-chain level, while running a complete application with thousands of users, that has minimal interaction with the main chain. The Demeter public chain has a built-in decentralized trading platform that allows businesses and individuals to create agricultural wallet accounts. Exchanges are settled with stable coin DMU, and any participant can apply for their own agricultural products, technology, formulas, tangible assets into digital assets. These digital assets can be freely traded among users within the ecosystem, providing a channel for mutual agricultural development and conversion. In the agriculture trading or selling process, after the participants reach bilateral or multilateral agreements, the platform automatically generates smart contracts, which include details such as farmers identities, production quotas, prices, plantation duration, and default amounts. In addition, the system uses a private key for multiple signatures, guaranteeing contracts cannot be tampered with. The smart contract generated by the transaction is not only defined by the code but is also enforced by the code. The smart contract parties do not need to trust each other, nor do they need the supervision of a trusted intermediary. The process is completely automatic, reducing the cost of the high-frequency, small-value transactions. Once the smart contract is secured, funds are allocated according to the terms of the contract. Only when the pre-set conditions of the contract are met can the funds be used. During the contract period and after the contract is concluded, neither party can control or misappropriate funds, ensuring the security of the funds. In addition, the content of smart contracts stored in the blockchain can only be altered if all contract signers agree. Smart contracts make transactions fair, equitable, cost-effective, efficient, and impossible to tamper with. The Demeter public chain can process transactions according to smart contracts and adjust and control the cost of any plantation according to market participation. That is to say, crop pricing during the execution of the intelligent contract can be adjusted to reflect real-time demand of yield. Since the transaction settlement process is based entirely on smart contracts, there is no need for human participation or third- party institutions to hold or lend trading funds. The data is fair and cannot be falsified, and the process can be traced back and queried. Significant time and effort are saved for both businesses and individual users in the energy transaction settlement process. The decentralized agricultural trading platform on the blockchain also has the ability to solve supply chain finance and cross-border settlement issues, as explained in the next section. Supply chain FINancing and cross-border settlements In agricultural trading, the data of billions of dollars will be an asset to the Demetoken public chain. The data can be used as a credit indicator for companies and other participants, giving participants the opportunity to provide loans based on credit scores. Smart contracts on the chain provide the agricultural trading platform and its upstream and downstream enterprises with agricultural trading smart contract templates for accounts receivable, total yield, distribution, warehousing, even plantation metadata etc., which assist enterprises and farmers with their daily operations.
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