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🌻 Effect of Climate Change, Food Production & Inflation on Commodities
Climate change and rising inflation pose a dual threat to global food production and agricultural commodity prices, creating a complex interplay that demands attention.
Climate change disrupts traditional farming practices through extreme weather events, shifting seasons and increased pests and diseases. This volatility threatens food production, reducing supply and increasing production costs.
Simultaneously, inflation exerts pressure on the agricultural sector. As prices across the economy rise, so do costs for agricultural inputs and transportation. This compounds the challenges faced by farmers, making it harder for them to maintain affordable prices.
Consumers are hit hardest as purchasing power diminishes in the face of rising prices. The nexus between climate change, food production, inflation, and agricultural commodity prices forms a feedback loop.
Reduced supply due to climate-related disruptions leads to scarcity and increased demand. This imbalance drives up prices, while inflation further raises production costs, fueling the cycle.
To mitigate these challenges, sustainable agricultural practices, climate adaptation strategies, research investments, price stabilization measures and effective inflation management are vital.
LandX offers an alternative finance option to farmers who are looking to modernize their production facilities. We can create win-win scenarios where increases in production and efficiency exceed the liabilities of the crop-share agreement.
Over the long-term the intertwining issues of climate change, food production and inflation will converge to shape the trajectory of agricultural commodity prices. LandX is well positioned to offer investors an opportunity to capitalize on this while providing essential financing at competitive, transparent and flexible terms for farmers.
✅ Benefits Of Bringing #RWA On-Chain
Tokenizing real world assets has gained significant attention this year due to its potential to revolutionize traditional financial systems and bring various benefits to all parties involved. On-chain RWA’s now exceed $1B US dollars in value proving the product market fit and demand. Let's explore how tokenization benefits asset providers, service providers, and investors:
1. Asset Providers: Tokenization offers several advantages to those who own and provide assets for tokenization:
Liquidity: Traditional assets like real estate and fine art are often illiquid, meaning they cannot be easily converted into cash. Tokenization allows fractional ownership, enabling asset providers to sell smaller portions of their assets, thereby increasing liquidity and access to a larger pool of potential buyers.
Access to a Global Market: Decentralization breaks down geographical and political barriers, making it possible for asset providers to tap into a global pool of investors without the limitations of traditional financial markets.
Reduced Middlemen: Tokenization can streamline the process of buying and selling assets by reducing intermediaries like brokers, lawyers, and custodians. This can result in cost savings and faster transaction times.
Efficiency and Automation: Smart contracts associated with tokenized assets can simplify various processes in a trustless manner such as dividend distribution, ownership transfers, and compliance with regulations. This reduces administrative burdens and associated costs.
2. Service Providers: Various service providers play crucial roles in the tokenization process, and they also stand to gain from its implementation:
Legal and Compliance Experts: Tokenizing real-world assets requires navigating complex regulatory landscapes. Legal and compliance experts can offer their services to ensure that tokenized assets comply with relevant laws and regulations. This creates a new avenue of demand for legal and regulatory services.
Technology Platforms: Companies that develop blockchain based tokenization platforms benefit from increased adoption and usage. They can generate revenue through platform fees, licensing, and associated services.
Financial Institutions: Banks and financial service providers can evolve their offerings to include services tailored to the tokenization space. This might include custody solutions for digital assets, settlement services, and token trading platforms.
3. Investors: Tokenization offers several advantages to potential investors in tokenized real-world assets:
Access to Exclusive Assets: Tokenization can provide access to assets that were traditionally reserved for high-net-worth individuals or institutional investors. Fractional ownership allows smaller investors to diversify their portfolios.
Liquidity: As mentioned earlier, tokenization enhances liquidity by enabling investors to trade smaller portions of assets on secondary markets, potentially reducing the barriers to entry and exit.
Transparency: Blockchain technology ensures transparency and immutability of ownership records. Investors can have confidence in the authenticity of their holdings and track ownership changes in real time.
Efficiency: Traditional asset transactions can involve a considerable amount of paperwork and intermediaries. Tokenized assets can streamline these processes, leading to faster and more efficient transactions.
Tokenizing real world assets holds the potential to revolutionize the way assets are bought, sold, and traded. For LandX we believe that digital assets are here to stay and blockchain technology will continue to disrupt traditional finance. Our products focus on bringing agricultural assets on-chain for inflation hedged yield bearing opportunities.
🎙️ Farmers Market Exploring BRICS Developments
Six new countries are set to join the BRICS expanding the reach and influence of the group. We will be discussing the economical and political effects in this weeks farmers market.
📆 Today Wed 30th August @ 12pm EST
Set a reminder: https://twitter.com/i/spaces/1yoKMZoBqvdGQ/peek
Learn more about how LandX can help you diversify your portfolio with inflation hedged assets that offer yield based on real world production
Website & App: https://landx.fi
Twitter: https://twitter.com/landxfinance
Discord: https://discord.gg/landx
Medium: https://medium.com/landx
Telegram: https://t.me/landxfinance
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