Blockchain economics

NEET Tokenomics

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Natural Environment EcoTokens

The total number of Natural Environment EcoTokens (NEET), which like FEET will all be minted at the same time, will be 100,000,000. The initial price at which NEET are offered for sale is US$100/Token, subject to adjustment from time to time. Each NEET will have a Smart Contract linking it to 1 are of land (100 m2, such as a square 10 meters in length on each side), so that the initial Issue price of US$100 per NEET is equivalent to a price of US$1 per square meter.

The link of each NEET to a parcel of land makes it unique in a material respect,18 and therefore an NFT (Non-Fungible Token). NEET are minted without the land parcel yet having been attached. The linking process will occur once only according to each NEET’s Smart Contract and cannot thereafter be altered or substituted.

The first Series of NEET, designated as Forest Edge Series A, will consist of 300,000 EcoTokens to be overlaid across 3,000 ha of the Concession. These NEET will be delivered by StarLabs to ICE affiliates who in turn may keep them, grant them to Founders or sell them to Members. NEET that are kept by the original ICE affiliate recipient are considered as held in its Treasury, and collect a share of the same distributions as the NEET that have been Issued to Founders or Members.

To the extent that YTHL is the seller of NEET, it will retain 5% of the gross proceeds as an underwriting fee. Income generated by underwriting fees and from distributions on unsold NEET will be used to promote the conservation aims and objectives of the Yayasan and may or may not be spent on the Project.

In order to promote the sale of NEET, ICE will pay commissions either in cash or in Tokens to parties originating sales of NEET, and will grant free FEET or NEET to parties whose support is deemed essential to a successful offering.

NEET held by their original ICE affiliate recipient are not considered to have been Issued, and will not yet be linked to a particular are of land. The right to choose the land to which a NEET will be linked can only be exercised by a Founder or Member, and not by ICE itself. The purpose of this policy is to assure the market that attractive parcels will not be taken up by ICE itself before Members have had an opportunity to choose.

The offering of NEET is available only to ICE Members who are eligible to participate in private placements of securities under the laws of all applicable jurisdictions. See “The ICE Digital Ecosystem – 2. Membership & Subscriptions.” For additional important notices about this Whitepaper and the offering of NEET, see “Legal Status of this Whitepaper.” By continuing to read this Whitepaper, you confirm your awareness and acceptance of this information.

The 99,700,000 NEET which are not part of Forest Edge Series A will be retained by StarLabs until the aggregate land area to be linked to the next Series of NEET has been designated by ICE. The minting of 100,000,000 NEET allows up to 1 million ha (1,000 km2) of land to be linked to NEET. This anticipates the acquisition of additional conservation projects by ICE besides Forest Edge. If ICE acquires more than 1 million of ha of conservation management responsibility that it wishes to tokenize, ICE will either mint additional NEET or tokenize the area on different terms using a different Class of EcoTokens.

Forest Edge currently intends to conserve over 3,700 ha of primary rainforest, to rehabilitate and reforest from 1,300 up to 5,300 ha of damaged secondary rainforest, and to maximize, monitor and preserve biodiversity within the Concession. However, it has no current plans to monetize its conservation efforts. Management has therefore decided to offer NEET so that Members acquire a special relationship to the Project’s conservation efforts and share in the benefits of these efforts.

In the case of NEET, the Real World Assets (RWA) to be tokenized are conservation management rights of ICE, and specifically in the case of Forest Edge Series A, the RWA to be tokenized are the Project’s conservation revenue generated from the Concession granted by the Government of the Province of Aceh.

It must be well understood by all Members that the rights granted to NEET Holders do not include any nontransferrable rights which are specifically granted to the Project company based on the Government’s approval of the Project company as the holder of the Concession. The rights attached to the NEET should be considered as an interest in revenue generated only and not as an interest or form of title in the land itself.

NEET represent the carbon sequestered in and biodiversity of a particular land area. Forest Edge Series A NEET each represent 1 are (100 m2) within the Concession. As and when ICE monetizes Natural Capital, management will attribute the proceeds of this monetization to specific land area, either by direct attribution on an are-by-are basis, or by shared attribution across a wider area.

For each are to which a NEET has been linked, and for the entire 300,000 are (3,000 ha) to which the NEET of Forest Edge Series A has been or may be linked, Forest Edge will:

    • Conduct detailed mapping of the land, including elevation, land use, ground cover and soil type, update this mapping from time to time, and provide to NEET Holders digital copies of all maps
    • Conduct a survey of the carbon sequestered in the soil and forest, update this survey from time to time, and provide to NEET Holders digital copies of all survey reports and certifications
    • Conduct a census of fauna residing in or traversing across the land, update this census from time to time, and provide to NEET Holders digital copies of all census reports and certifications
    • Share a selection of photographs, videos and other recordings of the land together with location information
    • Report on developments taking place on the land, including large mammal sightings, growth of plant life, discovery of unique features and other changes potentially of interest

The NEET Holder is entitled to 50% of the Net Proceeds of the Natural Capital attributed to the land area represented by the EcoToken. Net Proceeds are the sale price or other compensation received, minus transactions costs such as taxes and commissions. The cost of production of the Natural Capital (i.e. the Cost of Goods Sold) is not deducted. The amounts payable to the NEET Holder are limited to 50% because it is a percentage of revenue and not only of profits that is being distributed.

In the event of a distribution on Forest Edge Series A, NEET that have not yet been linked to a particular are of land are considered to have an undivided interest in all land which is available to be linked, but has not yet been linked, to Forest Edge Series A.

After a distribution of revenue to NEET Holders, the remaining revenue may represent either a profit or a loss to the Project, considered against conservation expenses incurred. This profit or loss will accrue to the Project, and will be comingled with profits and losses from the wood pellets and other businesses. Profits realized on conservation efforts after distributions to NEET Holders will not necessarily be reinvested into further conservation efforts.

The detailed mapping needed to describe the boundaries of each are represented by a NEET, and the software required to link each NEET with a particular parcel of land and embed its location information into the StarChain, have not yet been completed. Therefore, purchasers of NEET will initially receive Interim EcoTokens.

When the NEET Smart Contracts are completed, each Interim EcoToken representing a NEET will be automatically exchanged for a NEET whose are has not yet been chosen. Members will be notified and invited to select the land within the Concession that their NEET represent. Unless specific arrangements are made in advance, links to specific land will be assigned on a first-come, first-served basis, similar to choosing your seat assignment on a plane flight.

As with FEET, a party wishing to purchase all of the outstanding Forest Edge Series A NEET may contact ICE and will be allowed to make an offer to all Series A NEET Holders through the EcoWallet. If the Holders of a majority of Series A NEET agree to this offer, the remaining Holders are obligated to sell at that same price, and the sale will be executed automatically in the EcoWallet.

 

Unlike FEET, NEET do not have a Liquidity Policy or a Buyback & Burn Policy. NEET are NFTs and each represent a particular plot of land. Members considering a purchase of NEET are advised to view an investment in NEET as analogous to a property investment, as opposed to an investment in FEET, which can be viewed as analogous to an equity investment. As such, an investment in NEET is likely to be less liquid than an investment in FEET.

Unlike FEET, NEET do not have a Liquidity Policy or a Buyback & Burn Policy. NEET are NFTs and each represent a particular plot of land. Members considering a purchase of NEET are advised to view an investment in NEET as analogous to a property investment, as opposed to an investment in FEET, which can be viewed as analogous to an equity investment. As such, an investment in NEET is likely to be less liquid than an investment in FEET.

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