There are two core problems which DONUTCOIN aims to solve simultaneously. Firstly, within the organic/regenerative food space, there are significant problems for high integrity food producers gaining access to working capital, following traditional distribution pathways, and growing to scale while maintaining product integrity. This problem is explored in more depth in Appendix A, and will be of most interest to those stakeholders interested in finding mechanisms to address these problems within the food landscape, or investors interested in assessing the scalability and reproducibility of the DONUTCOIN project.
Second, and equally compelling, is the challenge of providing a stable and uniquely attractive instrument to the crypto economy, which has been plagued by volatility as well as a proliferation of coins and tokens, offering varying degrees of utility and not easily differentiated by outsiders. DONUTCOIN begins by providing a unique form of transfer and redemption via our own website exchange, as well as grounding the value of the token to a real world commodity which has the potential to provide a “buying power” equivalence of value for the token. In addition, by beginning this process with a deeply familiar and friendly food commodity, we gain tremendous potential marketing value, especially key to standing out in a crowded market environment. The DONUTCOIN project is designed to aim for a relatively modest market capitalization, which should be easily reachable through the novelty value of the token by itself. Adding in the commodity based price stabilization of a pegged currency, and the emotional and value based appeal of the organic and regenerative food mission is a belt and suspenders approach to meeting early stage goals.