Tellustra (TLUA) has announced the launch of a blockchain-based protocol aimed at restructuring the $1.8 to $2.5 trillion global agricultural finance market. The company stated that current systems undervalue both ecological contributions and product authenticity, leaving farmers with just 15–30 percent of retail value while around 14 percent of food value is lost between harvest and retail. The protocol seeks to close these gaps through asset tokenization supported by verifiable data streams.
The agricultural finance sector has been growing at an annual rate of 8–12 percent, yet persistent inefficiencies remain. Tellustra’s leadership explained that one of the biggest mismatches lies in the differing timeframes between financial markets, which operate in milliseconds, and agriculture, which functions in seasons. The company positioned its solution as a bridge, using continuous real-time data to transform agricultural outputs from static, undervalued assets into dynamic, liquid instruments suitable for modern finance.
Harnessing European agricultural heritage
Italy has been chosen as the initial deployment market due to its prominence in premium agricultural exports. The country’s farming base includes more than 1.1 million farms, with over 90 percent being small to medium-sized operations. Italian exports generate €7.8 billion in wine, €2 billion in olive oil, and €4.5 billion in cheese annually. These products are heavily targeted by global food fraud schemes, which are estimated to cost between $30 and $50 billion each year.
Tellustra’s system aims to simplify the burdensome documentation requirements that small producers often face. By automating compliance processes, tasks that previously took months could be completed within minutes through smart contract execution. Analysts highlighted that this efficiency could reduce barriers for producers and strengthen their defense against counterfeit goods.
Building transparency through Digital DNA
At the heart of Tellustra’s solution is its Decentralized Physical Infrastructure Network (DePIN), a distributed system of agricultural IoT sensors. These sensors generate immutable records of conditions such as soil, climate, and cultivation practices, collectively forming what the protocol calls Digital DNA. This cryptographically secured proof of terroir provides unprecedented transparency from production to consumer, addressing the opacity that has long plagued agricultural supply chains.
The company has also incorporated zero-knowledge proofs to balance transparency with confidentiality. This allows producers to validate compliance with quality standards without revealing sensitive details like production volumes or proprietary methods, a feature seen as essential for enterprise-level adoption.
Unlocking carbon value
Another critical focus is the monetization of carbon sequestration. Agriculture holds the potential to capture billions of tons of carbon annually through sustainable land management, yet verification challenges have historically kept this potential untapped. Traditional carbon credit systems rely on static models and periodic audits, which have eroded trust and suppressed growth.
Tellustra’s continuous monitoring infrastructure produces dynamically verified carbon credits supported by real-time data, turning ecological stewardship into a tradable and premium-priced financial asset. With carbon credit values ranging from a few dollars to over $50 per ton, the protocol aims to create a high-integrity system capable of attracting broader market participation.
Economic design and expansion strategy
The TLUA token underpins the protocol with a total supply of one billion. It plays multiple roles, including securing the network, enabling governance, paying service fees, and providing tiered access to advanced features. Forty percent of the supply is allocated to ecosystem development, particularly to incentivize farmers and reward network participation. A built-in buy-back and burn mechanism uses protocol fees to reduce circulating supply, creating deflationary pressure tied directly to adoption.
Initial rollouts will focus on Italy’s premium agricultural regions, including Tuscany for wine and olive oil, Piedmont for wine and truffles, and Emilia-Romagna for cheese. Subsequent phases will expand into France and Spain before moving into emerging markets, where smallholders can use verified standards to bypass intermediaries and reach global premium markets directly.
Positioning for the future
Industry projections suggest that real-world asset tokenization could reach multiple trillions of dollars by 2030, with agriculture representing a major share. By combining precision agriculture, blockchain, and regenerative finance, Tellustra aims to secure a leading position in this evolving space. The company emphasized that its long-term success will rely on strong partnerships, robust infrastructure, and a gradual transition to community governance.
With systemic inefficiencies, counterfeit risks, and undervalued ecological contributions continuing to challenge global agriculture, Tellustra’s blockchain protocol seeks to reshape how farming outputs are valued, traded, and rewarded in international markets.