Kanna Protocol
Decentralized Platform for Cannabis Supply Chain Certification
The Kanna platform conducts validations and audits, certifying and encouraging cannabis producers to adopt sustainable practices in their supply chain, while also facilitating patient access to medicinal products.
Kanna's cultivation certifications are stored on the blockchain, aiming to provide reliability and transparency to producers' activities, promoting integrity and sustainability in the sector, and driving market regulation aspects.
The auditing processes are decentralized, as the holder community itself can participate in verification activities, using KNN tokens according to the regulations of each process. At the end of the audit, producers receive a score that evaluates their project based on environmental (E), social (S), and governance (G) criteria.
Producers provide the necessary information regarding cannabis regulation and production processes, while token holders act as verifiers, attesting to the quality of the information and validating the accuracy of the data.
To understand the complete process, access the regulations and terms of use via the link below:
How is the Validation Process Conducted?
The Kanna community's cultivation audit aims to replace the intermediary in the validation and certification process of cultivation data, using a proof-of-value model.
The process involves the presentation of documents related to the project, ranging from fiscal documents and licenses to evidence of consumption, pollution, and damage repair, which are validated by Kanna community members, who receive a reward for this activity.
Cultivations can also be audited by market specialists and professionals from the academic community.
Step-by-Step:
Producer Registration on the Platform: The producer registers on the platform.
Submission of Documentation and Evidence Related to Cultivation: The producer submits the required documentation and evidence.
Verification and Evaluation of the Submitted Documentation: Community members verify and evaluate the submitted documentation.
Issuance of the Operation Report via Kanna Platform: The operation report is issued through the Kanna platform.
Display of Cultivation Information and Certification on Kanna’s dApp: The key information from the cultivation report is recorded on the blockchain to ensure credibility and trust in the process.
Trust Through a Decentralized Process
Members responsible for evaluating operations within the protocol may engage in behaviors that compromise the system's integrity. The two most likely scenarios are:
Evaluating randomly just to secure the reward.
Giving a favorable evaluation to the cultivation to benefit the token's valuation.
To mitigate these behaviors, our dynamics are based on game theory, using a proof-of-value model. This means that all participants benefit when a consensus is reached on the correct evaluation of the operation's quality. If any participant acts inappropriately, they not only lose the right to the reward but also the value locked to participate in the process, and they may even be excluded from future evaluations.
Below are some key points of the mechanics that help maintain a high level of compliance and ensure quality in information auditing:
Stake Pool as a Reward Tool:
To become a network validator, one must lock their KNN tokens in a stake pool during the audit process. This serves as a guarantee that they will not attempt to defraud or cheat the process. If a person's evaluation is far from the community's consensus average, they may lose both their right to the reward and the tokens locked in the operation.
Reputation & Governance:
It's not a high score in the certifications of participating cultivations that adds value to the process, but rather the maturity level of compliance, which should include rigorous evaluation criteria and solid evidence. The greater Kanna's authority and reputation in the executed processes, the higher the trust in the ecosystem's assets, which consequently adds value to the KNN token.
Involving External Actors:
We have involved not only the community but also other key actors to ensure the quality of certification. These actors include ESG specialists, agriculture and carbon experts, external certifiers and auditors, academic community members, and more.
Network Validator Leveling:
Kanna also plans to implement a reward dynamic aimed at benefiting the most active members who conduct the highest quality audits within the network, further encouraging engagement on the platform. This system will be integrated with Kanna's badges and NFTs system.
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