Natural Resource Audits
You can use your auditor contract to certify natural resources and become one of PaySwap's natural resources auditors.
Why Certify Natural Resources ?
There are multiple reasons behind the creation of PaySwap's natural resource tokens.
Security
Multiple countries with natural resources have trouble securing them and are often riddled with insecurities stemming from the illegal exploitation of those resources. By certifying each resource that has been legally mined, PaySwap aims to prevent resources that have been illegally extracted to be sold. This will deal a big blow to the practice of illegal resource exploitation and remove all incentives for such ventures.
Local Economy Development, Ecology & Climate Change
Mining companies can sell their tokenized extracted resources; this will bring a great deal of transparency to the sector and prevent and corruption in the industry. The incentive for tokenizing their extracted resources for mining companies is to be able to sell them on the eCollectibles' Auditors channel. Each natural resource token comes with an ESG score that rates the mining company on:
The percentage of local workforce used in the mines
The level of safety on the mining sites
The percentage of resources transformed locally
The level of ecological practices observed on the mining sites
This offers buyers, a leverage over the mining companies since buyers would be looking to only purchase tokens that have a high ESG score.
In the case of resources that don't need a mining company to be exploited (.i.e. cocoa, fish, etc), these certifications are given to the farmers or fishermen that exploit the resources.
This will enable them to sell those certifications on the eCollectibles' Auditors channel and increase their earnings potential.
Imagine a world where you have access to the list of IDs of all the certifications of the resources it took to produce every single product you buy. This will enable you to trace the supply chain of every resource that went into the production of your product and make sure the miners, farmers or fishermen at the start of the supply chain, were treated and compensated appropriately.
This will help prevent companies from endulging in child work, worker exploitation, unsafe work practices, non-ecological practices, etc.
This puts the power back into the consumers' hands and gives them the ability to incentivize good behavior from the companies the buy products from.
Gaming
Natural resource tokens are used to mint gaming objects on the Games platform. You can read more about gaming objects in the Games' section
🎮GamesWhy Buy Natural Resources NFTs?
There are multiple reasons why you might want to buy a natural resource NFT:
to have the power to incentivize good behavior from mining companies or companies dealing with farmers, fishers, miners, etc. If you buy enough NFTs from them, they would have to listen to you and treat their workers right
to reward the farmers or fishermen at the start of the supply chain of your products (electric car, chocolate bar, iphone, laptop, etc.)
to play a game since playing games with objects might help you earn more money or gain some other forms of bonuses depending on the game
to invest in a resource since the NFTs of a resource will be just as valuable as the resource. If you think a resource will appreciate in value in the future, then so will its NFTs.
etc.
How To Certify Natural Resource?
The first step is to deploy your auditor contract like on the page below:
The next step is to update your auditor contract's category ID to the natural resources category ID so users are aware you certify natural resources and so mining companies can contact you for work. To do so, go to your auditor contract's control panel menu and click on the Update Category button
Enter the number 2 for which is the ID of the natural resources category and validate the form
The next step is to attach an application link to your auditor contract so users know how to apply for an audit. Once again, in the control panel's menu of your auditor contract, click on the Update Application button; enter the link to a google form (or another application form) that users can fill to apply to work with you. Make sure the form collects their contact information so you can reach out to them if you are willing to work with them.
The step after that consist in waiting or looking for mining companies to work with. Once you've found one, you create a different account for each type of natural resource mined by that company, you are willing to certify. Let's suppose you are willing to certify their gold and iron. You need to create two accounts, one for the gold and another one for the iron.
Go to your auditor contract's panel and make sure you pick the currency you are going to be charging the account in. In the image below, we picked the USD currency.
You can view the process of selecting a currency on the page below
Go to your auditor contract's control panel menu and click on the Create/Update Account button
We are setting a payment of 1000 USD from the mining company to our auditor contract every 43200 minutes (which is the number of minutes in a month) starting from October 20th, 2023. The account Description mentions that the account if for the Gold natural resource and the field above gives the extracted gold a score of 5 over 5
The ESG Ratings field also gives the company a rating of 5 over. You can read more about how the ESG ratings are determined for natural resources on the page below
You can proceed the same to create the Iron account as well
The next step is to update the number of natural resource tokens extracted by the company each month so it can mint their certificates through your auditor contract.
Make sure you have selected the Gold account from the bottom left of your auditor contract's panel. The account selected in the image below has an ID of 1
In your control panel's menu, click on the Update Mint Info button and fill in the number of gold resources the mining company has extracted during the previous month.
It is up to you to come up with the number of units of those resources that a single token represents but in general it is recommended to use the industry standard, use the units generally used to quantify the resource in the industry and have one token for one unit.
You can explain how much a single token represents for the account by updating the rating's legend of your auditor contract. Go to the control panel's menu and click on the Update Rating Legend button. Input your description and validate the transaction
Congratulations! You have successfully set up a certification for the Gold natural resource, you can proceed the same exact way for the Iron.
It is recommended you reach out to other auditors certifying the same resources as you so you can unify your certification process and come up with a standard for all auditors certifying those same resources to follow. This will ensure compatibility between tokens representing the same underlying resource but delivered by different auditors.
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