---
# System prepended metadata

title: Collateral Backed Digital Market for Rare Plants
tags: [product]

---

*Product seems suited as an application on top of **Nation3 Contracts.***

```mermaid
sequenceDiagram
  participant User
  participant EscrowContract
  participant Farmer
  participant Arbitrator

  User->>EscrowContract: Pay agreed price
  EscrowContract->>EscrowContract: Vest funds for 10 years
  User->>Farmer: Request NFT issuance
  Farmer->>EscrowContract: Verify payment and collateral existence
  EscrowContract-->>Farmer: Issue NFT
  loop Maintenance Fee (every 3 months)
    Farmer->>EscrowContract: Request maintenance fee
    EscrowContract->>Farmer: Release maintenance fee
  end
  User->>Farmer: Claim Collateral (NFT)
  Farmer->>EscrowContract: Verify Collateral
  alt Collateral Available
    Farmer->>EscrowContract: Burn NFT
    EscrowContract->>Farmer: Funds Released
  else Collateral Unavailable
    User->>Arbitrator: Raise Dispute
    Arbitrator->>EscrowContract: Escrow Details
    EscrowContract-->>Arbitrator: Retrieve Evidence
    Arbitrator-->>User: Review Evidence
    Arbitrator-->>Farmer: Review Evidence
    Arbitrator->>EscrowContract: Release Funds (To Winner)
  end
```

**Heritage Guard:** A collateral-backed NFT and escrow system for rare plants.

Heritage Guard is a platform that allows farmers of rare plants to issue an NFT backed receipt to users who can burn the NFT to redeem the underlining collateral. When the user `mint()` the NFT, the funds is transfered to an escrow contract issued by a digital arbitrator in case of a dispute during the `claim()|burn()` process.

## Farm Feature

- Issue NFT: Product on-boarding - (Proof of insurance, proof of product)
- Claim Maintainance Fee(): After providing evidence
- Burn()
- Dispute: Agreement Date and collateral not claimed by buyer

## User Feature
- Mint NFT()
- Claim()
- Dispute: In case Product does not exist

---
## Key Features
- Dispute resolution
- Reputation system : (+ collateral -- we need a reputable farm)


## Recommendations

- Chatbox for farmers and users to communicate.
- Secondary market place for NFT holders to sell product.
- Fractional ownership.
- Auction Plant close to the end of the escrow period and ship to bidder.

## Risk

- Plants can die, but the farmer is not incentivized to kill the plants. ( There is also an option of insurance ) Farmers of rare plant have to provide proof of insurance before allowed to on-board on our platform.
- Crypto Regulations


*Potential user group: Collectors, people looking to preserve plants going to extinction, NFT lovers, speculators*