Rice "RISO" Token FAQs

1. What is the tokenization of rice?

Tokenization of rice refers to the representation of ownership or stake in rice as digital tokens on a blockchain. Each token corresponds to a specific quantity or value of rice, facilitating its trade and management as a digital asset. Rice producers tokenize their inventory, representing each unit (like a ton or kilogram) of rice with a digital token. These tokens can then be traded, sold, or used as a form of collateral, similar to other digital assets.

2. Why Invest in Rice? 

Hedges against inflation. Investing in rice is one way to ‘hedge’ against inflation in which times money shuns its value and we see prices rising. We spend more money to buy goods and services – Investing in Rice, being an essential commodity, preserves one’s wealth enhancing investment value to sustainably hedge against rising costs. 

Portfolio diversification. There are many ways to diversify one’s portfolio. Some investors include stocks from different sectors and geographies, while others include assets like cryptocurrencies. Introducing RISO™, we are extending rice as an alternative systematic wealth and income multiplier and complementing it with issuance of digital asset tokens that will trend set wealth building into the advancement world is pacing into.  

Stable Demand. With increasing global population especially from Asia, the Middle East, and Africa where Rice is the most common staple food and their influx into western world for better opportunities, demand for rice is likely to rise across, as populations from these regions consume rice the most and their impact and influence is visibly felt in the western world. Over the next few decades at least, we do not foresee any glut in rice consumption, except in certain extreme socio-political situations like China which is the largest consumer and importer of Rice stops importing Rice from other Countries. But with India recently surpassing China in population numbers and the growing economic conditions of ASEAN, Middle Eastern and African nations, it is predicted that any Surplus that China leaves, World will be ready to easily absorb the glut.

3. What is Riso?

RISO™ structures Premium Grade Basmati Rice as an income producing asset without compromising investor ownership and control over the asset. RISO is built with the idea of multiplying income and securing wealth with the help of Rice. If stored appropriately, Rice remains non-perishing and lastingly improves in value as it ages. Investing into RISO, you will be investing into purchasing Basmati Rice and allowing Masala with trading rights to trade and sell the end goods on your behalf, reinvest or distribute margins at the end of every cycle until the investor sells ownership of his/her/its secured token(s)..

4. How does Riso as a SWIM Program benefit investors?

Subscribers will be offered ‘Rice SWIM’ Tokens [Digital Token – The ‘Rice SWIM’] with underlying ownership in Rice that Masala Agri will source from Farmers, Mills and Suppliers. Once material is sourced and subscriber assigns tradable, retailing, exchange or sale rights to Masala, we trade and retail rice to the local stores, wholesalers, restaurants and individual customers as the market economies and distribution cycles and trends permit us. The RISO™ Tokens are in effect 'Security Tokens’ as the Investor is extending tradable rights to Masala with an intent to benefit out of its effort, and we follow US Securities Laws. These Tokens may be retailed, traded, sold or exchanged for other tokens or assets or holders may even seek physical delivery of equivalent Rice as and when the minimum holding period passes through and restriction is removed either by registering the tokens with SEC or by following an exemption to register the Securities. If the Investment is made by a non-US Person from outside of the USA, under Regulation S of the Act, then that person will be able to sell without restrictions if such sale is happening outside of the USA to a Non-US Person. 

This Tokenization provides increased liquidity, transparency, and accessibility. Investors can buy or sell fractional ownership, get real-time price updates, and access a broader market base, sometimes globally.

Hurdle Rate 7.5%. 66.67% of Net Cash Profits. (Sales Realization minus Management Fee, Hurdle Rate, Audit & Compliance Exp and Return of Principal). For Profit generation, Masala trade cycles Rice Inventory invested through Riso SWIM Program 6-24 times in a year maintaining 15 Days to 2 Months inventory turnover. Out of Net Cash Profits, 2/3 is shared with Riso Participant(s) as their share of Profit. 

5. How is the value of a rice token determined?

The value of a rice token is primarily derived from the current market value of rice. Additional factors like quality, variety, and origin of the rice, as well as supply and demand dynamics, can influence the token's price. $100 Token = 40 KG Rice (Bag)

6. Is investing in rice tokens secure?

Yes. However, like all investments, there are inherent risks. The blockchain's decentralized and immutable nature ensures transaction security and transparency. Investors should perform due diligence and work with reputable platforms.

6. How can I buy or sell rice tokens?

Rice tokens can be purchased by visiting mydhan.io website. or speaking with one of our sales representatives. Tokens can be sold on tokenization platforms or digital asset exchanges that support them. Ensure that the platform you use is compliant with local regulations. Subject to any regulatory perspectives that the investors may have to follow as to the period of holding and registration / exempt thereof from Registration of My Rice Bowl Tokens as Securities Instruments, One may exit out of their Tokens by seeking physical delivery of Rice in equivalence  [1 Token equals 40 Kilos of Rice] net of any charges or by trading and selling off for Cash  or by trading and exchanging with other available alternative assets.

7. Are there any fees associated with trading rice tokens?

Yes, like other digital assets, there is a Transaction Facilitation, 2% per annum over prevailing NAV** Management Fees & Charged 0.5% every Quarter Annual Compliance. Other Transaction Costs Brokerage, Gas Fees & Token Transfer to Wallet, Custodian Maintenance & Actual Costs levied by Service Provider and Miscellaneous Banking Charges levied by your bank.  

8. How are the physical rice stocks corresponding to the tokens stored and managed?

The rice represented by the tokens is stored in verified warehouses or storage facilities. These facilities are often subject to periodic audits and inspections to ensure quality and quantity accuracy.

9. Can I redeem rice tokens for actual rice?

Yes. Participating  in RISO™ is  not  mandatory. Anytime, they have the option to take physical delivery, sell and cash out, or even exchange their tokens for other assets, as permissible. These tokens will not have Hurdle Rate and Profit sharing from Masala as the Owners/Investors are not seeking any future economic benefit or return on the asset through the efforts of the Issuer – Masala Agri Corp.

10. What happens if the stored rice gets damaged or loses its quality?

We have insurance or a similar protective mechanism to compensate token holders in case of such unforeseen events.

11. How does RISO™ tokens compare to traditional rice commodity investments?

Rice tokens offer enhanced liquidity, fractional ownership, and accessibility compared to traditional methods. They can also simplify cross-border trades and reduce certain overhead costs.

12. Are there any regulations governing My Rice Bowl tokenization?

RISO™ Tokens are in effect 'Security Tokens’ as the Investor is extending tradable rights to Masala with an intent to benefit out of its effort. And we should follow US Securities Laws. These Tokens may be retailed, traded, sold or exchanged for other tokens or assets or holders may even seek physical delivery of equivalent Rice as and when the minimum holding period passes through and restriction is removed either by registering the tokens with SEC or by following an exemption to register the Securities. If the Investment is made by a non-US Person from outside of the USA, under Regulation S of the Act, then that person will be able to sell without restrictions if such sale is happening outside of the USA to a Non-US Person.

13. Do rice tokens have any environmental impact, given they are on a blockchain?

Some blockchain networks, especially those that use Proof of Work (PoW), consume significant energy. However, many newer chains and platforms are adopting more energy-efficient consensus mechanisms. It's beneficial to be aware of the underlying blockchain's environmental impact.

14. How liquid is the rice token market?

Market liquidity can vary based on factors like platform adoption, overall interest in rice as an investment, and global rice market conditions. Typically, as tokenization becomes more popular, market liquidity should improve.

15. Is the rice token market volatile?

Like any market, the rice token market can be subject to volatility based on supply and demand, geopolitical events, and other macroeconomic factors. It's essential to research and stay informed.

16. What's the difference between rice tokenization and other agricultural tokenizations?

While the underlying concept remains similar, each agricultural product might have unique considerations related to storage, shelf life, quality parameters, and market demand.

17. How can I track the provenance and quality of my tokenized rice?

Our tokenization platform integrates with supply chain tracking systems that utilize blockchain technology, allowing investors and consumers to trace the origin and verify the quality of the rice.

18. Can rice tokens be used as collateral for loans or other financial instruments?

Yes, in many instances, rice tokens can be used as collateral, much like other assets. The acceptability of rice tokens as collateral will depend on the lender's terms and the regulatory environment.

19. Do RISO™ tokens pay dividends or yield?

Yes, Hurdle Rate 7.5%. 66.67% of Net Cash Profits. (Sales Realization minus Management Fee, Hurdle Rate, Audit & Compliance Exp and Return of Principal). For Profit generation, Masala trade cycles Rice Inventory invested through My Rice Bowl SWIM Program 6-24 times in a year maintaining 15 Days to 2 Months inventory turnover. Out of Net Cash Profits, 2/3 is shared with Bowl Participant(s) as their share of Profit.

20. How do I report my earnings from rice tokens for tax purposes?

Tax implications can vary by jurisdiction. It's recommended to consult with a tax professional familiar with digital assets in your locale to ensure accurate reporting.

21. Are there any limitations or restrictions on trading rice tokens?

These Tokens may be retailed, traded, sold or exchanged for other tokens or assets or holders may even seek physical delivery of equivalent Rice as and when the minimum holding period passes through and restriction is removed either by registering the tokens with SEC or by following an exemption to register the Securities. If the Investment is made by a non-US Person from outside of the USA, under Regulation S of the Act, then that person will be able to sell without restrictions if such sale is happening outside of the USA to a Non-US Person.

22. How do fluctuations in global rice prices impact the value of rice tokens?

Rice tokens are inherently tied to the value of rice. Therefore, global price fluctuations can directly impact the token's value. External factors like weather events, global supply and demand, and geopolitical events can influence rice prices.

23. Are there any competitors to rice tokenization?

Yes, many agricultural and non-agricultural assets are being tokenized. Each tokenized asset class has its unique value proposition, market dynamics, and risk factors.

24. How is the authenticity of the tokenized rice verified?

Verification often involves periodic audits of storage facilities, quality checks, and sometimes third-party verifications. Blockchain's transparency can also deter fraudulent activities.

25. Can I transfer my rice tokens to another person or entity?

Yes. One of the benefits of tokenization is the ease of transferability. However, always check for any platform-specific restrictions or regulatory considerations.

26. What happens during a poor harvest season?

Poor harvests can lead to reduced supply and potentially higher rice prices, which may impact the value of rice tokens. Token holders should be aware of the agricultural risks associated with rice cultivation.

27. Are there specific risks associated with rice tokenization that I should be aware of?

Apart from market and price risks, investors should consider storage risks, quality degradation, regulatory changes, and any potential technology risks associated with blockchain platforms.

28. Can I diversify my investments with different types of rice tokens?

Yes,  Participating  in RISO™ is  not  mandatory. Non-participants who do not seek physical delivery may own Asset Tokens, which they can redeem at their own convenience. Anytime, they have the option to take physical delivery, sell and cash out, or even exchange their tokens for other assets, as permissible. These tokens will not have Hurdle Rate and Profit sharing from Masala as the Owners/Investors are not seeking any future economic benefit or return on the asset through the efforts of the Issuer – Masala Agri Corp..

29. How quickly can I liquidate my rice token investments?

Liquidity can vary based on platform adoption, market demand, and the overall interest in rice tokens. Generally, a more established and popular platform will offer better liquidity.

30. What safeguards are in place to prevent market manipulation?

Many reputable platforms incorporate measures like trade surveillance systems, volume tracking, and partnerships with regulatory bodies to deter and detect market manipulation.

31. Difference between RISO, AROZ and PADDY.

RISO™ by Masala Agri offers a unique investment opportunity, allowing individuals to invest in Basmati Rice and multiply income while retaining ownership and control. PADDY provides funding to farmers and secures the first right to purchase the harvest, ensuring higher profits by directly engaging with farmers. AROZ Tokens represent ownership in rice sourced from farmers, mills, and suppliers, allowing investors to preserve the commodity's value and hedge against economic fluctuations. Both programs aim to align investor returns with project success and benefit from the global demand for rice as a staple food.