Renewable Energy and Tokenized Assets with Cenfura
The recent Cenfura Token (XCF) listing on Bilaxy sparked our interest. For those of you who haven’t come across Cenfura yet, Cenfura is genuinely the first renewable energy company whose token acts like a real-world asset.
Cenfura is an Independent Power Producer (IPP), which owns and operates renewable energy assets across the globe. Cenfura’s assets include the ability to support Transactive Energy: a novel way of buying and selling energy on a decentralized marketplace. All of Cenfura’s renewable energy assets, functions, and services within the Cenfura Platform are tokenized, and every transaction is settled utilizing XCF tokens. XCF is an ERC-20 token based on the Ethereum blockchain.
Asset driven XCF tokens
Every time a new asset is onboarded, a certain amount of XCF tokens are locked-up for five years for the team, partners, advisors, and others who are contributing to the development of that asset. This confirms that the team is highly vested in the project and will continue working on project development. Additionally, vesting reduces market price manipulations and increases token flow in the future. The number of XCF tokens that are to be locked-up for each new onboarded asset will be calculated based on the estimated annual value (using FIAT currency) of the asset’s energy production during its first year.
Cenfura’s XCF token is backed by physical renewable electricity generation on their own grids or third party grids. XCF token represents the equivalent value, in preferred FIAT currency, of electricity being purchased or sold in any given grid that is owned or operated by Cenfura. XCF tokens are classified with the SEC as utility tokens, and as a utility token, the XCF token itself is not sold as an investment contract, and it is therefore not considered a regulated security which in practice means that renewable energy transactions are done in the form of pre-payment.
The XCF token value is based on direct demand – the more renewable energy being produced and consumed, the more tokens are required to settle the FIAT value of those transactions. Total XCF token supply is limited to 1.5B tokens, while the current circulation supply is limited to 450M tokens. The velocity depends highly on the granularity of the Smart Grid and Transactive Energy model. If every consumer and producer of Renewable Energy is allowed to trade with each other and additionally can utilize Energy Storage, then the velocity will increase dramatically. In regards to these factors, Cenfura has reserved 600 million tokens for ‘Treasury’ purposes and ‘balancing’ for linear growth optimization of the XCF token. In addition, having their own exchange allows for better control of circulation and protection against price fluctuations on the volatile cryptocurrency market, and this is additionally stabilizing as more renewable assets are owned and operated.
XCF tokens are on a lockup period of six (6) months after the end of the pre-sale. Initially, sixty percent of the tokens (including those bought in the pre-sale period) will form the pool used for the energy transactions of the Cenfura platform, and forty percent of the tokens will establish an operational reserve for additional initiatives including poverty and incentive programs.
Cenfura possesses massive potential in the renewable energy space with its unique token model, broad pipeline, and the team boasts a long and comprehensive track record in finance, technology, and all aspects encompassing renewables. Company information and employees are also fully available on LinkedIn.
A comprehensive interview with Randall Meals, President and CEO of Cenfura, will be coming up shortly. In this article, we will go more in-depth about the company, transactive energy, technology as well as a look at their current and future projects.
The company mentioned in this article is an existing much-needed sponsor of this blog and our community. We, however, want to highlight that all opinions and findings in this article are genuine and the company does not affect any of the content or have any editorial rights.