FAQ

FOR TOKEN PURCHASERS & PRE-ICO PARTICIPANTS

  • Why are you doing this?
    • Our global team appreciates the awesome power of blockchain technology to reorient the world towards further decentralization and transparency. Combining our backgrounds in the food and technology industries, we are committing to improving the global food supply chain through radically innovative solutions that support the critical work of feeding humanity. We believe in solving real world problems using novel innovations and our team stands behind our ability and vision for market-making in this industry.
  • What expertise do you have to make this work?
    • Our team has decades of combined experience in the ‘good food’, social enterprise, and technology industries. Our insight into user experience and opaque market dynamics allows us to penetrate the complicated food industry quicker than other players from the crypto market.
  • Who has committed to using Lokas?
    • We come with partners in hand. Food businesses with millions of USD in sales have committed to partnering with us to implement our payment solutions across multiple regions.
  • How will Lokaal Market maintain a competitive advantage?
    • Our coin is designed for use in commercial trade. By focusing our design principles on practical solutions, we are able to entice users who want to do better business. Our board of advisors in the US and Asia help us define our strategic direction so that we stay ahead of technological and market developments.
  • Will this make money?
    • Lokaal Market is built to make enough money through marketplace fees and it’s short term loan program in order to cover the costs of operating the marketplace and private vendor exchange. As for the tokens themselves, we can not make any predictions whether the value will go up or down over time. We built our model with certain expectations of the effects of supply and demand over time, and with the specific intent to grow demand for tokens through our marketplace programs and to protect our marketplace participants from deflation.  That said, LOKA tokens are intended to be used for the purchase of product within the Lokaal Market network, and to provide a platform which supports small scale agriculture and enables positive social impact.  Any financial gain or loss from the change in value of LOKA tokens over time is secondary to this purpose and we can make no claim or prediction regarding this incidental effect.
  • I’ve heard that there are a lot of scam ICO’s out there.
    • This is absolutely true.  The ICO landscape is filled with bad business models, ponzi schemes, and outright fraud.  We are starting from a place of transparency, building a currency around an existing, ongoing business, and designing our plan to provide positive social impact.  We feel you should be extremely cautious with any ICO promoting itself as “a great investment”, especially if it’s an unregistered utility token.  
  • What is the value in making this a publicly traded currency?
    • The small scale agriculture world is by nature fragmented and distributed.  While we could create a stand-alone application which could also provide positive social impact benefits, and in fact this is how many e-commerce companies within the good food industry go about it, we don’t have any illusions that we can consolidate all of the players into a central marketplace.  The beauty of a distributed, open currency is that we don’t need to add huge layers of administration costs in the middle and can easily scale by allowing a diversity of existing businesses to use our payment solutions.
  • Why not use bitcoin (or ether, or litecoin, etc.)?
    • If you’ve been following the BTC/USD prices in the market, you can see that while it’s generally going up, the volatility is extremely high.  Considering our small farms need frequent access to their funds in USD to pay things like mortgages, payroll, or living expenses, it’s not realistic to expect farmers in particular to adopt BTC as a payment method.  By custom designing a currency with smallholder farmers in mind, we can stabilize the exchange rate for them, provide liquidity and build additional features as explained in our whitepaper.
  • What is the value of a Loka (LOK) compared to the U.S. Dollar (USD)?
    • The opening price is 10 Loka to 1 U.S. Dollar.  Once public trading starts after the ICO, this exchange rate is subject to change.

FOR BUYERS:

  • Can I return Loka that I purchase?
    • Loka that are purchased within our private exchange may be returned for the purchase price less a small transaction fee within 14 days.  After 14 days they can only be redeemed for product at a participating vendor or exchanged on a public exchange when available.
  • How do I earn bonus Loka?
    • When you use Loka from a Lokaal Market wallet as a purchase from a participating vendor, bonus tokens will accrue in your wallet, which can only be redeemed for product at a participating vendor.  Additionally, if you refer another user to Lokaal Market and they open a wallet, you will receive bonus token for every purchase that they make.
  • What can I purchase with Loka?
    • Currently, we are in an early beta, and you can purchase products on our internal marketplace @ http://lokaalmarket.wpengine.com/shop This includes food items and gift certificates to a select group of partner food vendors within the US Northeast.  Once we close our Pre-ICO raise, we will be growing the list of partners, and when the ICO closes, we will work as quickly as possible to implement Loka as a payment option at as many vendors as we can.
  • Can I give Loka as a gift?
    • Yes.
  • How do I dispute a charge from a vendor?
    • The smart contract acts essentially as a self regulated escrow account.  The funds are fully released when you receive and sign off on the delivery.  We will be building a mechanism to flag a transaction for review by the Lokaal Market team.

FOR SELLERS:

  • What happens if the value of the Loka drops before I withdraw my money in USD?
    • Our marketplace doubles as a private exchange, just for vendors.  This means that you are able to withdraw your funds directly in USD from us.  We record the value in USD at the time of sale, and this amount is fixed.  At any time that you choose to withdraw your funds from us you will receive the exact amount of USD that was recorded at the time of sale.  This functions on a first in / first out basis, since you will likely have tokens at multiple exchange rates in your wallet at any time.  If you chose to exchange your tokens on a public exchange instead, you will get the market rate at the time.
  • How can I get a loan?
    • Once we go live with our ICO, we will have a pool of tokens and dollars to use for an easy self-regulated lending program.  Any good food vendor in our system with at least 4 months of sales history using Lokas may instantly receive a loan through a self-service portal that we will build.  Terms are designed to be fair and affordable for the realities of the agriculture industry, and payback will be automatically managed through future sales using Loka.
  • What happens if I have a disputed transaction?
    • Since we automatically provide instant cash flow for all sales up to 30 days, you will not be affected negatively in terms of cash flow.  However if the disputed transaction takes longer than 30 days to resolve, the instant payout will convert to a loan and begin to accrue interest.  You will be automatically notified of any disputes, the funds will be held centrally until buyer and seller agree on the course of action. Both buyers and sellers with too many disputed transactions as a percentage of total sales will potentially face other limitations  to our marketplace features.
  • What services can I buy using LOK?
    • Currently, we do not have any B2B offerings available, but once we close our pre-ICO, our plan is to create a full marketplace for products and services to help you achieve success in your business, including agricultural inputs (seeds, equipment, fertilizer), logistics services, and business services.  If you have any service providers that you love, bring them along! Please feel free to connect us and we can explain the benefits of accepting Loka as a payment.