This project involves the development and construction of a prototype modular, environmentally controlled, self-contained greenhouse growing system for plants capable of operating remotely situated (off-grid) and in coordination when interconnected in a power, communications, and thermal storage network.
Truly self-contained off-grid cultivation is a particularly difficult technical problem that requires an extremely efficient use of sunlight, water, sustainable power, and back-up fuel. The ability to employ high-tech greenhouse cultivation methods is usually preceded by a utility-scale power source. A prototype of this system could serve as a laboratory to investigate the degree to which this assumption is due to a technological barrier, and possibly even set fairly aggressive benchmarks compared to other cultivation methods.
These modular grow pods would incorporate plant growth systems (such as deep-water culture hydroponics) and environmental control, reduced from ‘building-scale’ to ‘machine-scale’, making the associated mechanical and electrical devices run on 24-48 VDC power. In off-grid solar or wind applications, this low voltage internal DC BUS eliminates the need for inverters, simplifies the internal electrical distribution as well as the solar BOS devices, such that much of the interfacing with site solar or wind power resides within the modular grow pods themselves, making them virtually self-contained.
As a plant cultivation system alternative, this modular self-contained grow-pod system could provide a means of growing crops that would otherwise be impossible to grow in certain climates or locations that lack the necessary electrical power infrastructure for conventional temperature-controlled greenhouses, or areas susceptible to prolonged drought or natural disasters such as flooding and wildfire. These systems can also be deployed in hybrid configurations where they serve as a power, water and thermal energy infrastructure source for conventional greenhouse structures.
In addition to systems for plant cultivation, the modular grow pods also feature an integral lithium-ion battery array and compact backup fuel-fired DC charger, either of which can be connected to the internal power distribution, or it can be connected to a site primary BUS (running at a higher voltage) shared by a cluster of this unique class of distributed energy resource (DER).
One of the more unique DER capabilities is the integral thermal storage system. The onboard hydroponics system features a compact chilled water system in which hydroponics water is kept cool, and excess chilled water is generated during the day and stored in an internal thermal storage tank. If the hydroponics circulation system is still calling for cooling after the sun goes down, chilled water can be drawn from the thermal storage tank instead of powering the chiller off the batteries. This thermal storage feature could allow for a form of load-shedding mode in a DC microgrid environment, in which power loads for devices – such as chiller – are deferred when needed.
Unlike buildings and industrial electrical loads, which make up most of the modern AC grid, the modular grow pods electrical loads are expected to be largely consistent day to day, thus providing for a predictable load profile. The inherent resiliency of plants to minor fluctuations in environmental and nutrient conditions can also be estimated for any given crop. Coupled with the integrated thermal and power storage as well as self-charging capabilities, multiple modules could be programmed for a synchronized shedding of the electrical loads associated with plant growing chamber environmental control and plant life-support systems, such that each grow pod experiences only an intermittent loss of non-critical systems. This combination of features, amplified in the aggregate, makes a DC microgrid made up of a network of grow pods very stable, and could have many applications in adding resiliency to the grid.
Some of the questions that research could be aimed towards investigating include: how this unique class of Controlled Environment Agriculture (CEA) compares to conventional field agriculture with regards to nutrient, water and energy footprint, across various crops; the economics of how much excess power can be stored, shed, or exported by a group of grow pods to an existing microgrid; its adaptability to changing climate; and its amenability to automation and scale.
This concept would be consistent with the change in landscape experienced in the data center industry which created the opportunity for niche container-based data center solutions, in an industry currently dominated by centralized solutions. The emergence of cloud computing, along with increasing data demands and distributed environments, requires data centers to be nimble. A standardized, pre-assembled and integrated data center module allows for a shift from a customized “construction” approach to a standardized “site integration” approach. Prefabricated modules are faster to deploy, more predictable, and can be deployed for a similar cost to traditional stick-built buildings.
In face of the global challenge to produce more food because of population growth, radical rethinking is needed to mitigate the constraints imposed by ever dwindling arable land and fresh water in a changing climate. As crops are moved to the indoors to protect them from an increasingly hostile climate, a scalable and modular approach may be favored over a conventional solution – such as large-scale centralized greenhouses and warehouse-sized indoor vertical farms – in some cases, particularly in areas where electrical infrastructure is scarce.
The grow pods will feature a system of remote monitoring and control of HVAC, light-deprivation, security, hydroponics, and power harvest systems. Every grow cycle yields valuable data such as light cycle logs, nutrient feed trending data, grow chamber temperature and setpoints, equipment runtimes, actual 'sun-hrs', site generated power metering, environmental sensor trending, equipment/system failure logs, grow space timelapse video, and heating/chilled water usage.
Such a rich set of input data taken across a multitude of modules can be used to build a Machine Learning (ML) model to discern relationships between internal systems for crop production and power harvesting, and conditions such as weather, season, grid demand, real-time energy pricing, etc. Although it would take time to train such a model, the ML techniques that would be useful here are currently widely used and often open source, and eventually it will:
Especially valuable are predictions about energy usage, equipment faults and plant environmental stress.
The ROGUE Crops (RC) Token will (eventually) be powered primarily by an asset fractional ownership smart contract, where each token equates to an equal ownership share of a portable self-powered plant cultivation piece of real estate.
In addition to these Security Tokens, Governance Tokens will also be issued, which can interact with other Facilities Management (FM) smart contracts, such as programmed disbursement escrow accounts to pay for repairs and routine maintenance, to ensure the longevity of the asset. Token holders can also vote on DAO proposals, such as grant programs and governance structure amendments.
The recent proliferation of blockchain decentralized digital ledger systems, combined with the implementation of smart contracts, such as those powered by the Ethereum blockchain, now allows assets like real estate to be tokenized and be traded like cryptocurrencies like bitcoin or ether. The application of this new decentralized transaction ledger system allows for the elimination of intermediaries, add liquidity to the RE market, and drastically reduce overall transaction costs.
Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a deed to a property, or sending notifications. The blockchain is then permanently and irrevocably updated when the transaction is completed.
The Security Token Offering (STO) will offer investors a $200 share of a high-value piece of Ag Tech with a novel architecture that combines the electrical grid-stabilizing elements of a microgrid DER, with the type of technically intensive cultivation methods that are likely to keep up with population growth in an environment with ever-dwindling arable land and fresh water.
A Master LLC serves the purpose of consolidating the legal process necessary to provide what the SEC considers an investment security offering. This Master LLC tokenizes interests in a Series LLC that is the sole owner of each asset. RC Security Tokens represent ownership of a membership interest in the LLC, which is referenced in the ownership records kept by an independent escrow agent, making it legally irrevocable. Additionally, each token transaction is recorded in the blockchain, making its ownership readily verifiable.
The development of the Facilities Management (FM) smart contract is a vital aspect of the RC Token, which aims to ensure the continued utilization and preservation of the asset which back it, throughout its life.
Like the Security Token smart contract, there is legal force behind the tokenization of the Facility Management process, which is enshrined in the Equipment Lease Agreement between the Series LLC and the User. This Equipment Lease Agreement stipulates that the User will cover the cost of regular maintenance and routine repair for the duration of the Leasing Period, via a Minimum Leasing Fee.
A common metaphor used to explain the essence of a smart contract - coined by their originator, Nick Szabo - is that of a vending machine. A smart contract, like a vending machine, has logic programmed into it; money + snack selection = snack dispensed.
In the case of a FM smart contract, routine repair tasks such as replacement of pumps, compressors, motors, fans, or electronics can be triggered by the greenhouse control system’s trouble/fault alarms. For example, a flow switch, which monitors flow in a piping system, triggers a signal to the controller when there is a lack of flow. This trouble alarm starting a chain of events at the edge, which initiate a set of blockchain transactions:
An error code is broadcast to a pre-selected contractor, who in turn responds with a proposed service code. This service code includes a description of the repair, cost, and lead time. In response, a confirmation code is broadcast, affirming the proposed quote is acceptable, or an error code describing the problem with the proposed service code. Responses to the proposed service code are provided on behalf of the user by select DAO governance token holders. Regular maintenance tasks, such as filter replacement, strainer cleaning, equipment inspections, and functional testing can be scheduled, and thus can follow a similar mechanism.
Over time, the vetting of proposed service codes could be replaced with a smart contract that relies on machine learning rather than governance token holders, while the framework for negotiating transactions can remain. Other examples of composability are instances where the FM smart contract interacts with a bank account escrow smart contract programmed to disburse funds as tasks are completed, transferring coins from the DAO treasury to the Contractor wallet.
A modular portable approach to greenhouse construction – although a niche market - makes it possible for the Facility Management smart contract to be further composed of increasingly sophisticated systems of smart contracts that would eventually allow for a self-executing distribution chain to clone a cultivation module, upon receiving a special service code generated by the leaseholder. This code would trigger a similar set of transactions, accessible to select Governance Token holders.
To raise money for this project thru the sale of crypto tokens without breaking financial regulations, an investment contract called a Simple Agreement for Future Tokens (SAFT) will be offered to qualifying individual non-accredited investors, online through an SEC-registered intermediary, such as a broker-dealer or a funding portal.
A SAFT is a security issued for the eventual transfer of RC tokens to investors. In practice, when a company sells an investor a SAFT, it is accepting funds from that investor but does not sell, offer, or exchange a coin or token. Instead, the investor receives documentation indicating that the investor will be given access if a cryptocurrency or other product is created.
The founding team will use funds from the sale of the SAFT to develop a functional RC token and then provide these tokens to investors with the expectation that there will be a market to sell these tokens to.
On November 16, 2015, the Securities and Exchange Commission (SEC) adopted new rules and forms to permit companies to offer and sell securities through crowdfunding in reliance on the exemption under Section 4(a)(6) of the Securities Act of 1933 ("Securities Act"). These new rules implement the requirements of Title III of the Jumpstart Our Business Startup ("JOBS") Act, which added Sections 4(a)(6) and 4A to the Securities Act and Sections 3(h) and 12(g)(6) to the Securities Exchange Act of 1934 ("Exchange Act").
Crowdfunding is a relatively new and evolving method of using the Internet to raise capital to support a wide range of ideas and ventures. An entity or individual raising funds through crowdfunding typically seeks small individual contributions from a large number of people. Individuals interested in the crowdfunding campaign – members of the “crowd” – may share information about the project, cause, idea or business with each other and use the information to decide whether to fund the campaign based on the collective “wisdom of the crowd.”
A company issuing securities in reliance on Regulation Crowdfunding (an “issuer”) is permitted to raise a maximum aggregate amount of $1,070,000 in a 12-month period.
The mission of the ROGUE Crops organization is to advance off-grid self-contained modular plant cultivation solutions and novel DC microgrid applications, by researching and developing projects such as the subject prototype greenhouse as well as hybrid applications involving conventional greenhouses and containerized indoor grow ops. Additionally, it will develop Ethereum-based smart contracts to allow this concept to spread further.
As a Decentralized Autonomous Organization, this idea will hopefully find an eager community of Growers, Scientists, Engineers, Lawyers and Builders to bring this concept to life, in the pursuit for ways to stabilize the electrical grid, minimize agriculture’s impact on the environment, and boosting agricultural production in developing nations.
The function of the DAO is the management of its assets and DAO treasury, through the (eventual) decentralized implementation of grants to fund projects that will help it carry out this mission.
DAO governance mechanisms will be developed in stages as the project stabilizes and is able to sustain itself financially. Governance development will include DAO constitution and DAO treasury management mechanisms.
DAO rule-making powers will be vested in a bicameral council made up of a Science Branch (lower legislative chamber) and an Engineering Branch (upper legislative chamber). DAO executive power will be vested in a Construction Branch, which will execute DAO-proposed projects. DAO owner has veto power.
Science, Engineering and Construction subgroups will be made up of Governance Token-holders. The power to mint and issue Governance Tokens will be vested in the DAO Owner. To ensure that DAO expansion follows adoption of modular cultivation solutions, Governance Tokens will be issued to past research, design, engineering, and construction project stakeholders. For example, Governance Tokens may be issued to prototype project stakeholders upon completion of the project, or as necessary during the course of a construction or research project.
Project Development Tokens are issued exclusively to equipment leaseholders. These token holders can initiate FM smart contract transactions. They are bound to own the land and obtain all necessary regulatory approvals for the deployment of a modular cultivation cluster.
Science Token-holders make up the Science Branch, which is the lower legislative chamber of the DAO rule-making council. This is a DAO subgroup dedicated to articulating ideas from Security Token holders into concise grant proposals, consistent with the DAO mission, to be voted on by all Token holders. All rules concerning the DAO Treasury management will also originate from this lower legislative branch.
Engineering Token-holders make up the Engineering Branch, which is the upper legislative chamber of the DAO rule-making council, dedicated to translating ideas described by grant proposals into executable plans for research projects, consistent with the DAO mission. This subgroup performs architectural engineering and fabrication programming functions for DAO-proposed projects. These tokens can trigger specific FM smart contract transactions, such as the vetting of proposed service codes by Contractors or interpreting error codes generated by devices at the edge.
Construction Token-holders make up the Construction Branch. This subgroup performs construction management functions for DAO-proposed projects. These tokens can trigger specific FM smart contract transactions, such as the vetting of proposed service codes by Contractors.
The Mint Token-holders is a subgroup made up of the DAO founding team, Master LLC managers, and other fiduciary stakeholders.