The Dominican company Tree Farm Token launched an international investment project to develop, manage and commercialize a plantation of 2,600,000 mahogany trees in a 2,000-hectare site in the Dominican Republic.
Currently in the initial phase of fundraising, the Tree Farm Token project aims to combine digitization and forestry. Tree Farm Token is committed to cultivate trees following an intensive tree management plan, controlled by external auditors and aimed at maximizing the volume of commercial timber per tree.
In detail, it is planned to divide the land into 20 self-sufficient, individually managed farms. Investors in the tree farm Chip investors buy the trees at an early stage, paying the planting price. Investors do not pay maintenance costs, since the operation is self-financing.
“After 10 years, once the mahoganies reach adulthood and cut size, they will be sold in the wood market for a total value of approximately 1.8 billion euros, in a realistic scenario,” he explains. the team of chips of Tree Farm.
Tree Farm Token will manage the sale of adult mahogany to international timber trading companies, and will take care of the total profit to pay the investors (owners of the chips). Tree owners can also sell their trees in regulated markets online before the plants reach maturity.
“Most trees take several years to grow, and the long term required for trees to reach maturity and trade is a barrier for some potential investors,” says Alexis Texeiro, CTO of Tree Farm Token. “A new player in the market aims to break down this barrier by digitizing trees and exchanging them in online platforms, this solution offers a liquidity tool for those investors who would like to obtain their profits before the trees are sold.”
Beyond the commercial implications of the operation, the Tree Farm Token project should also bring social and environmental benefits to local communities. “In addition to creating around 500 jobs, we agreed with the Dominican government to contribute to its reforestation policies by creating a forest of more than 2 million trees,” says Mr. Texeiro.
“In addition, in Tree Farm Token we also agreed to create White Whiskers, a social action association with the objective that no child in the region starts the day without breakfast.”
Speaking about the environmental impact of the project, Mr. Texeiro adds: “Each mahogany tree can compensate 47 kg of CO2 per year, 2.6 million mahogany trees can offset the total CO2 emissions of a tourist enclave such as Punta Cana. ”
For more information, visit www.treefarmtoken.io