Australia’s pioneer in P2P energy trading Power Ledger has launched a new security token that will make it possible for retail investors to be co-owners and beneficiaries of renewables assets. The company announced that it is in the final stages of procuring its first assets – a grid-connected battery and a commercial solar system.
“We’ve developed a model that we believe will define the world’s best practice when it comes to fully regulated blockchain token offerings, while allowing people to actively help the environment by supporting renewable energy all over the world,” said Dr. Jemma Green, co-founder and chairman of Power Ledger.
The Asset Germination Event (AGE) token will make it possible to collectively invest in renewable energy assets like solar and wind farms and community-owned batteries.
Its goal is to increase the amount of capital flowing towards renewable assets – a class reserved for deep-pocketed “sophisticated investors“ – in Australia these include people with an annual income of at least $250,000, or net assets of $2.5 million.
“When everyday people can invest in and co-own commercial renewable energy assets, we will be closer to our goal of a decentralized and democratized energy ecosystem,“ Green said.
“Our mission is to democratize energy, and AGE promises to be a pivotal step in powering the decentralized energy model and opening up the market to previously untapped capital.”
The priority to invest in the AGE tokens will be given to the holders of Power Ledger’s POWR tokens that were generated as part of the company’s Initial Coin Offering.
In its token generation event last October, which was Australia’s first ICO, Power Ledger managed to raise $34 million from over 15,000 investors. As reported, the capital injection comprised roughly $5 million in cash and $29 million across the Ethereum, Bitcoin and Litecoin cryptocurrency networks.
According to Power Ledger’s token generation paper, 30% of the proceeds from the token sale will be used for purchasing renewable assets, which will be done as part of its AGEs.
This basically means that the holders of digital tokens will be able to get their stake in real-world assets that will generate income and not easily depreciate in value – a novel mechanism to drive the intrinsic value of a token.
The launch of the AGE token comes only days after the Perth-based start-up was named the winner of a global technology competition run by Sir Richard Branson, and the recipient of endorsements worth millions.