A Brazilian startup said it plans to use blockchain technology in a scheme that links cryptocurrency to a fraction of soil revitalized by hemp, with the value represented by a digital token.
The initiative, developed by São Paulo-based Kanna Coin, has a goal to finance projects aimed at reducing carbon dioxide emissions, according to a company white paper.
Uruguay, Colombia first
In addition to exploring the commercial potential of hemp, “Kanna is a DAO (decentralized autonomous organization) . . . that reinvests the profit generated to expand its area of operation and, consequently, improve its backing in environmental and social impact actions,” said co-founder Luis Quintanilha.
Kanna said its initiative is in line with four of the United Nations’ 17 sustainable development goals – advancement of innovative industries and infrastructure, sustainable consumption and production, the fight against climate change, and reversal of land degradation and biodiversity loss.
Despite much discussion and proposed laws that are under consideration, Brazil has not made any substantial progress in developing a hemp program. Kanna said it has plans to initially lease fields in Uruguay and Colombia, where the crop is legal.
Carbon credit trading
The company aims to have 150 hectares of hemp under cultivation, remove 66,000 tons of carbon dioxide from the atmosphere and generate $40 million in revenues through trading in carbon credits based on its token, the KNN, by 2026
While mainly targeting the consumer market, Kanna said it is looking at the potential to bring in institutional shareholders who make large purchases of KNN tokens under a share capital conversion model.
Kanna was founded by Quintanilha, a partner at IT education company Gama Academy, and Mario Lenhart, a former financial executive at PricewaterhouseCoopers, Fiat and investment holding group Votorantim, São Paulo.