Proposal Discussion – A New "Land Token" Concept: Inflation-Resistant Stablecoin on Algorand

ARCs
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We are exploring the launch of a completely new token concept, a “Land Token”, designed as an inflation-resistant stablecoin backed by real-world land assets. We believe Algorand’s scalability, sustainability, and decentralization make it the perfect blockchain for this innovation.

This idea builds upon ARGO-LAND, a project we started nearly a decade ago, which now seeks a development partner to move forward.

What Makes This Different?

Unlike traditional land-backed assets, we propose a stablecoin whose value is dynamically adjusted by an oracle, based on:

  1. The real estate value of agricultural land (benchmarking against market valuations).
  2. The ecological health of the land, measured by specific environmental indicators (soil quality, biodiversity, CO₂ absorption, and other factors).

By combining these two metrics, the land token remains resistant to inflation while also incentivizing long-term ecological sustainability.

Current Status & What We Need

  • We have secured 1.5 million square meters (60+90 hectares) of land for tokenization.
  • We are looking for developers and blockchain experts to:
    • Implement the dual-token system (land-pegged stablecoin + exchangeable utility token).
    • Design the oracle mechanism to ensure a transparent and decentralized valuation model.
    • Integrate with Algorand’s smart contract infrastructure.

We aim to keep this project decentralized and eco-conscious, avoiding centralized entities like Binance or Coinbase.

Back in December 2019, Dr. Micali commented on the project’s alignment with Algorand’s vision:

“Though words have power, it is more than a coincidence of terms! It is an alignment of goals and GREEN goals in particular. Indeed, the negligible computational power required by the Algorand blockchain allows us to be simultaneously extremely scalable and decentralized as well as environmentally friendly.”

Would this concept be of interest to the Algorand community as a formal ARC proposal?

Looking forward to your insights and collaboration! :rocket::herb:

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Hello,
What exactly do you want to bring to the ARC repository that is not covered yet?
From the interoperability standpoint, it looks like a classic Token or NFT.

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Hello,

Thank you for your response!

The key distinction between our proposal and traditional NFTs or classic tokens lies in the fundamental economic function we aim to achieve: wealth preservation through a land-backed stable asset that is not subject to free-market speculation.

Why NFTs Are Not a Suitable Solution
NFTs are inherently subject to market dynamics—their value is determined solely by supply and demand, making them highly volatile and speculative. As such, NFTs cannot serve as a reliable store of value or protection against inflation, since their price can fluctuate unpredictably, often influenced by short-term trading sentiment rather than intrinsic valuation.

The Argo-Gaian Dual Token Model
Our approach introduces a two-token system designed to ensure both stability and liquidity:

Argo Token (Stable Asset - Store of Value)

Anchored to the real-world value of agricultural land, which is custodied and maintained to preserve its long-term value.
Its price is determined by an oracle, which calculates a weighted average between:
The real estate market value of the land.
The natural value of the land, assessed through ecological health indicators (biodiversity, soil quality, CO₂ absorption, etc.).
This makes Argo a true inflation-resistant stablecoin, as its value appreciates slowly and steadily over time, following the increase in land value and the ecological improvements resulting from conservation efforts.
Gaian Token (Liquidity & Exchange)

A fungible token used for trading and exchange.
Listed on CEX/DEX to allow free-market participation.
Argo can only be acquired through Gaian, ensuring that those who seek long-term stability must first engage with the ecosystem through Gaian.
Why This Model is Unique
Real Asset Backing: Unlike algorithmic or fiat-backed stablecoins, Argo’s value is tied to tangible, appreciating assets (land).
Controlled Market Exposure: Unlike NFTs, whose price is dictated by market speculation, Argo’s value is inherently stable and inflation-resistant, making it suitable for long-term wealth preservation.
Sustainable Growth Mechanism: As the land’s ecological health improves, so does its nominal valuation—creating a virtuous cycle where conservation efforts directly increase asset value.
Trust-Based Legal Protection: The land is held in a Foundation established under a Jersey Purpose Trust, meaning:
The asset remains within the protective legal framework of the Trust.
The Trust cannot operate outside its founding principles, ensuring transparent and secure asset custody.
Why Algorand?
We strongly believe that Algorand’s blockchain infrastructure—with its efficiency, decentralization, and environmental sustainability—is well-suited to host this system. However, we would love to hear practical feedback from the community on whether this is technically feasible on Algorand or if, as some developers have previously suggested, it would be better suited for a more widely adopted blockchain like Ethereum.

Looking forward to your insights and suggestions! :rocket::seedling:

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What are you planning to use? Only ASA or a combination with Smart contracts?

This seems like a use case of ARC-20: Smart ASA

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Thank you for your question!

We are considering a combination of ASA and Smart Contracts, rather than relying solely on standard ASA. Specifically:

  • Gaian Token (exchangeable token) would be a standard ASA, as it needs to be freely tradable on CEX/DEX without additional constraints.
  • Argo Token (land-backed stable asset) would require Smart ASA (ARC-20) because:
    • It is pegged to an oracle-based valuation mechanism that considers real estate value + ecological health indicators.
    • It needs controlled issuance and redemption mechanisms to maintain its stability.
    • It must be non-adulterable by market speculation, ensuring its function as a store of value.

Would ARC-20 be the best approach to achieve these goals, or do you suggest an alternative structure within Algorand? We appreciate your insights!

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In my opinion, you can go with a standard ASA for Both.

However, for your Argo Token, you must set it as freeze/Manager/Clawback Address, the Smart contract that handles all your logic.

You can have a look at ARCs/ARCs/arc-0018.md at main · algorandfoundation/ARCs · GitHub
It’s close enough to what you are trying to achieve; it just needs some minor adjustment.

If you use an oracle, be sure to consider this ARCs/ARCs/arc-0021.md at main · algorandfoundation/ARCs · GitHub

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Reply:

Thank you for your response and for pointing me to ARC-0018 and ARC-0021!

I’m glad to see that using Algorand’s standard ASA framework seems feasible for our model. The idea of integrating the freeze/Manager/Clawback functionality within a smart contract to handle Argo’s logic is definitely something we’ll explore further.

For now, we’re looking forward to connecting with developers interested in supporting us on the technical side of the Argo-Land project. If anyone is open to collaborating or sharing insights, we’d love to discuss how to bring this vision to life!

Thanks again for your help! :rocket::seedling:

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You should try the Algorand Discord. It will be easier to catch up with Devs. https://discord.com/invite/algorand

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Thank you Stephane! I will :muscle: