Dominican company Tree Farm Token has launched an international investment project to develop, manage and commercialize a plantation of 2,600,000 mahogany trees on a 2000-hectare site in the Dominican Republic. Source: Timberbiz
Currently on its initial fundraising phase, the Tree Farm Token project aims to combine digitalization and forestry. Tree Farm Token commits to grow the trees following an intensive tree management plan, controlled by external auditors and addressed to maximize the commercial wood volume per tree.
The land is planned to be split into 20 self-sufficient farms, managed individually. Tree Farm Token investors buy the trees at an early stage, paying the sowing price. Investors pay no maintenance costs, as the operation is self-financing.
After 10 years, once mahoganies have reach adult age and cutting size, they will be commercialized in the wood market.
Tree Farm Token will manage the sale of adult mahoganies to international wood trading companies, addressing the full profit to pay the investors (owners of the tokens). Tree owners can also sell their trees in regulated online markets before the plants reach maturity.
“Most trees take several years to grow. The long term required for trees to reach maturity and be commercialized is a barrier for some potential investors,” Tree Farm Token Chief Technical Officer Alexis Texeiro said.
“A new market player aims at demolishing this barrier by digitalizing the trees and trading them in online platforms. This solution brings a liquidity tool for those investors who would like to make their profits before the trees are sold.”
Beyond the commercial implications of the operation, Tree Farm Token project should also bring social and environmental benefits to local communities.
“Besides creating around 500 jobs, we have agreed with the Dominican Government to contribute to the reforestation policies by creating a forest of more than two million trees,” Mr Texeiro said.
