# Asset Valuation

The KNN Token increases its efficiency in environmental and social impact over time
The Kanna token has its value linked to the physical operation of hemp cultivation, with 1 KNN token equivalent to X square centimeters of cultivated soil and impacted by the phytoremediation process.
By having a pre-defined maximum volume of tokens (Total Supply), as Kanna's operation expands the cultivation area, the token gains even greater ballast, increasing its efficiency in CO2 removal.
$Ballast = Impact Area / Total Supply$
Ex: Kanna has an area of ​​20 million cm² (2 Hectares) and a supply of 10 million tokens, so each token is equivalent to 2 cm².
If after one year the impacted area has expanded to 60 million cm², each token will be equivalent to 6 cm², an increase in impact efficiency by about 3x (three times) or 200%.
So if each cm² of hemp plantation removes about 10g³ of CO2 per year, then the token with 6cm² ballast removes about 60g³/year.
The KNN Token's ability to increase its efficiency over time, brings it a DEFLATIONARY LOGIC

### Increase in Efficiency Over Time

Kanna's Business Model and Plan was designed so that the token gains efficiency over time, providing more and more impact, as illustrated in the example above. Another factor that contributes to this efficiency is the result obtained from the production of CBD and other derivatives of medicinal or industrial cannabis, which has its contribution margin reinvested so that we can expand the operation, generating a feedback mechanism for the expansion.
This makes the generation of results have as main objective the expansion of the cultivation area and consequently the increase of the token's ballast, additionally, the mechanics contributes to the appreciation of the price, since this result can be achieved by its scarcity, increased efficiency and/or by various means of utility.
Token price projection for the year 2026 according to Kanna's business plan.

### Ballast Validation

The process consists of the confrontation of evidence of cultivation sent by Kanna, of the audit carried out by the community, interacting with intelligent oracles to ensure the validation of the asset's ballast.
In summary, the process documentation involves satellite photography with evidence of the impacted space, positioning coordinates of the photographs via GPS, technical report of the plantation, log with all events and evidence sent and confronted.