The Commodity FX District will be the biggest revolution in the transfer of commodities worldwide since the Steam Engine!
What Are We Solving?
The CME Group boasts income of over $900 000 000 USD per quarter from its commodity trading exchanges, futures, and options trading. Commodity FX can return this equity into the hands of producers and manufacturers. This will make goods more affordable and improve the bottom line for businesses.
What We Replace - Banks - Brokers - Traders (Futures and Options) - Exchanges
The most glaring advantage that Commodity FX will offer to both buyers and sellers will be the simplicity and groundbreaking ease of execution. Linking producers directly with manufactures and/or consumers.
Let’s make it as simple as possible to buy and sell any commodity, worldwide, with literally a few clicks of a button.
The District
The District will consist of Three Key Processes.
- Market Place - this is where the buyer and seller connect and come to an accord on price and quantity. The contracts can have the option of future delivery dates that are agreed upon by both parties. This platform will be clean, crisp, elegant, and extremely user friendly. Transactions will be completed with the fewest steps.
Once the smart contract is in place it will move over to transportation.
- Transportation - The smart contracts will be offered up to freight brokers all over the world. As contracts are posted, brokers will bid and the buyer will choose the bid they are comfortable with.
The buyer enters into a smart contract with the broker to move the product from seller to buyer.
This can be as simple as a trucking company locally or as complex as international shipments to a distant country.
Insurance may be simply handled by the transport broker. However, a platform such as IXledger (IXT) could be used to add the ability to insure any goods.
Shipit.District0x DP#153 could be used by brokers to quote and to execute the shipping requirements of the offered contracts. Regardless, we are creating a market place for entrepreneurial transport brokers to simply search contracts and make deals.
- Payment - Sellers can post their product price in whatever form of currency they are comfortable with and buyers can view the pricing in their currency of choice.
To secure the Commodity Smart Contract the buyer will send their funds to an Escrow account to be held until completion. It is important that the currency selected for transactions is stable as funds may sit in Escrow for an extended period in the case of international shipments. Tether is a good option to consider, as most companies are accustomed to transactions in US dollars. Ultimately, we would like to move away from the US Dollar and transact in a stable Crypto Currency.
A small "Gas Fee" on every transaction would generate income.
MERX Membership Token
Membership tokens will be sold as a point of entry into the Commodity FX platform.
A Matrix of the amount of Membership Tokens required to trade within each value range would be developed. There will be a low membership cost for small local traders.
Early adopters would be incentivized with free or very low cost Membership tokens.
District Implementation
The project will start with a limited number of commodities and be run on a local scale to prove smooth execution. We have a strong background in agriculture (Ag) and have experience in buying and selling Ag related commodities. A basic platform could be built and implemented in short order. We currently have the contacts to implement the platform in North America. This district could find it roots here and then explode into ALL major commodities.
This District can be utilized by large producers and buyers alike, at the same time giving small producers all over the globe the ability to market their wares on a powerful, well-connected platform.