A land-backed token for the common good
Tokens backed by the U.S dollar or gold exist but what about a token backed by land?
Billions of dollars’ worth of cash, U.S. treasury bills, gold bars, etc. are backing tokens like Tether, USDC, PAX gold and Tether gold which are held to protect against high market volatility. I feel these billions would be better stored in land for the benefit of the holders but also for the common good.
As Mark Twain said: “Buy land, they're not making it anymore.“ Land is a hard asset that could be used to back a token. In fact, this has happened before in history. The Rentenmark was a currency issued in 1923 backed by a mortgage on agricultural and industrial land to stop hyperinflation in Germany.
A land-backed token, as I see it, would be created by a community organization that raises funds, allocates them and manages the land.
When funds are raised, new tokens are issued and distributed to funders. All tokens are backed by available funds and previously purchased land.
Price of token is based on the net asset value formula, which is the net value of the organization's assets (e.g. funds, purchased land) minus its liabilities (e.g. taxes), divided by the number of tokens outstanding.
Revaluation of purchased land, allocation of funds to buy new land and redemption of tokens are subjects discussed and voted - one person, one vote - during meetings.
The token is listed on exchange platforms and protocols to ensure liquidity. The token can also be used as collateral in other projects, for example to open vaults to generate DAI.
Now, why did I talk earlier about the benefit of this token for the common good? In line with historic initiatives such as the Jewish National Fund - which owns 13% of Israel’s land - and Community Land Trust, as well as visionary books like Island and The Network State, I believe that a community organization that manages land must have a great mission and must manage its land accordingly.
Having spent time in ecovillages, I support adopting the mission and values of ecovillages as defined by pioneer Robert Gilman: "[An ecovillage is a] human-scale full-featured settlement in which human activities are harmlessly integrated into the natural world in a way that is supportive of healthy human development, and can be successfully continued into the indefinite future."
As a result, land managed by the community organization is leased through low-cost long-term leases to projects closest to this mission.
The leases cover the operational costs of the community organization without recourse to donations or other means of funding.
The aim is to create a win-win-win situation between the token holders, the community organization and the tenants while finding practical solutions to countless challenges of creating such a token.
If you are interested in this idea, you can join the group chat on Telegram to discuss it further. I would love to hear from you!