TOKEN2049 - How FinTech is making Fair-Trade Profitable - François Dumont (GoldFinx)

good morning my name is Francois Jamal I'm a co-founder and CEO of golf Phoenix when we were asked to come and talk about how new technology can influence positively the financial industry we certainly jumped on the occasions to come talk about our business case Golf and X is a fin tech company that was created in a new form of funding for companies that are linked to gold mining it's a highly profitable business model that just happened to be fair trade classified and environmentally friendly the problem that we're so passionate at solving or helping solving is the inability for the small-scale gold miners to have access to capital if you're a gigantic of the company industrial sized mining operation and you require a billion dollar for your new funding venture banks will be at your feet loaning you the money for the most part to say 99.9% of the 40 million small-scale miners involved in gold around the world getting any type of funding is impossible the United Nations the World Bank large NGOs spend a large amount of money trying to determine what was the cause for this horriffic conditions around the gold mining in the small-scale environment which will detail a little bit further and every time the conclusion is always the same the inability to have access to capital is this supposed to there we go pay attention you miss it you blink you I said that day they lost a woman and a young teenage boy this is not every day this Orphic but the conditions around that mining operation is every day's reality the consequences of not finding finance or capital or access to capital for that group this status quo impacts everybody literally everybody around the world the fact that they don't have access to capital they don't have access to technology to machinery it's fairly manual the process and unfortunately they've been using for decades mercury and cyanide which without going too much in detail facilitate the amalgamation of the gold dust the usage of this mercury has severe consequences one of the main reasons why we're not supposed to be eating fish or so much fish in our diet it's because of the mercury accumulation in the food chain linked to the fish now keep in mind that the thousands of times thousands of tonnes of mercury is used in the jungle in the remote areas yet the fish lives in the middle of the ocean right so look at the trail of devastation of this condition so this is probably the the most vivid consequences but there's also horrific human condition happening the abuse the violence that is linked to the environment they don't have legal arbitration over there if they dispute with something it's usually the kalishnikov cousins that resolve that dispute I had the pleasure of living in people in South America trying to organize a co-op of miners and then every time that was meeting with the group of miners of about 20 there was always one or two kids proud to be attending the meeting because he was proud of his father's work and I couldn't help myself every time that I was meeting with them I had this feeling that was meeting with zombie is literally the the white of the eye is no longer white it's yellow and it's injected with blood it's a very weary talking face-to-face with these guys but what struck me the most was looking at the kid like a 10 12 year-old kid you know that he has already started working on the mine by the way but you see that eventually extrapolating his life he's looking at a life expectancy which is closer to 45 years old than 75 years old so that is very poignant when you're involved in the day-to-day activity and reality of this so in a nutshell there's something needs to be done and we cannot live with this status quo the solution we're trying to go after is basically to bring them from Stone Age literally from this extremely manual process using you know harsh chemical to a much more you know contemporary environment where they use the proper machinery and by usage of the right technology you don't have to use the harsh chemical in the jungle so how we do this essentially we've created and using the crypto as a mode of financing all of this operation we've created our gigs the cryptocurrency we're selling the gigs we're accumulating the the revenue and then we're allocating in a very creative way which is the fair trade the aspect of our operation which is basically we advance the money by paying an advance certain amount of gold that just happened to be their requirement to execute a business plan their working capital campus until their cash flow positive once their cash flow positive they start obviously operating first thing they need to do is they need to deliver the gold that we purchase in advance this transaction is done in gold and when we receive the gold we store permanently into a vault in Switzerland and that becomes a protected aspect of our coin which very exclusively we have this protected point and there's a link through the smart contract on to the management of the trustee that is responsible for the vault and then the gigs so should there be a condition that would prevent our gigs our cryptocurrency to continue to exist in time there's a condition that would cause a liquidation of the gold in the vault and then the money would be distributed amongst all of the gigs owners going back to the gold delivery once they deliver the advance purchase that we contracted from that point on the reward for us for advancing this money to them we're getting a royalty of productions for the lifetime of the mine of 20% seventy-five percent of that royalty is also stored permanently into the vault ensuring it gives you two things gives you the protection to the gigs our cryptocurrency but also give you an the ability which is extremely rare in the crypto world to project in time the minimum price of that crypto by the sheer fact that the volume is accumulating in the vault and then you know that you have a finit number of coins this is very unique in how we're doing this and it just happened to be fair trade and environmentally friendly the additional benefit of our business model we have a service of a supply chain management system also using block chain that will certify the origination of the gold which is primary jewel and important when you come to the refinery this is when you smell when you melt the raw gold and transform it to pure gold this is a time that you associate a value and that value is what it referred to as the London pricing the gold miners in the jungle sell today their goal probably have 30 percent of that value but by providing them the ability to certify that this comes from that mind and that money is legal it's allowed to be refined in the European refinery and obtained that price of the day which is the highest price you could get for the goal the currency that we have this gates is also going to be used as a micro currency we're not going to replace the Fiat of the world but definitely serve a purpose to operations that are in the jungle allowing them to basically buy their supplies using our geeks having a matching wallet card for the spouse to actually go to the village use ATM machines provided by us convert to local currency today when they're buying their supply in the jungle diesel and other supply everything is done with the pinch of gold dust so you buy you buy your diesel pinch of gold dust so that means if you pay with the gold dust it means you have a pouch of Goldust it means you need to have weapon you need to have protection we're eliminating all of that risk by providing them with a smartphone which they already have sometimes they don't have coverage but we also have set phone solutions for that so this is a great mix of high-tech in a very remote area and then finally this is all done in respecters the United Nations they had a conference and everybody established that something needs to be done in that sub industry of gold mining and we believe and then we validated this with different agencies we are you know gonna be able to impact very favorably in changing that condition just give you an example today there's 40 million gold miners small-scale operating in 75 countries today this is about 30 some prospect that we have on the table that we're analyzing but we will select the best of the best out of that one we're ready to lunch we're starting to fund somewhere in may a small mine in in Africa but that with the proceeds of the first raise we anticipate to do as much as 15 mines and help 15 communities so essentially this is what we're going after basically bringing some humanity into that industry that is has been so much devastated for years and decades and decades if we don't do anything this is going to continue and then thankfully we have the solution to address that so we are doing our part than you can too we have a booth next door we'll be more than happy to if you stop by it to explain how you can contribute into this this crusade thank you very much [Applause] you