Frontiers · Digital Farmlands · Token architecture
The token is a claim. Define it.
Choose the economic claim
Equity in the asset-owning vehicle
Exposure to residual farm income and asset value after creditors and costs. Voting, distributions, redemption and liquidation rights must be specified in governing documents.
- 1
Local landholding entity
Holds lawful title or leasehold rights. Local ownership limits, taxes and permits still apply.
- 2
Fund or holding structure
Aggregates asset entities where permitted. Review insolvency isolation, governance, fees and conflicts; no jurisdiction is automatically suitable.
- 3
Documented equity rights
Define share class, payout waterfall, investor votes, dilution and manager removal.
- 4
Permissioned token register
Identity checks and transfer controls can support compliance. ERC-3643 is one option — not a legal approval or a substitute for correct data.
- 5
Distributions and eligible transfers
Reconcile bank receipts, taxes and investor records. Fiat or stablecoin payouts need documented providers, controls and recovery.
Current appraisal basis
Equity economics
$100,000
Equity budget from the model — not an offering, subscription price or allocation.
Underlying asset purchase
$98,039
Modelled financing
0% LTV
Tokens do not create buyers
Fractional ownership may lower ticket sizes; it does not guarantee volume, redemption or a price near NAV.
Data does not settle title
Satellites and sensors help monitoring. Registry checks, inspections and audits still matter.
AFIDA and local restrictions
U.S. reporting analysis is separate from ownership prohibitions. Counsel must verify current federal and state requirements.
Primary source ↗Withholding is not final tax
FIRPTA generally withholds 15% of amount realised on covered dispositions, with exceptions. It is not a flat tax on every token transfer.
Primary source ↗Restricted resale
SEC Rule 144 is one resale safe harbour with holding periods and conditions. A timer alone does not create eligibility or liquidity.
Primary source ↗