Virgo Chain Whitepaper · Virgo Chain Whitepaper Page 3 of 42 Abstract This whitepaper describes in detail how Virgo chain can disrupt and transform agriculture and farming practice

Copyright © Virgo Plant Limited 2019, All rights reserved.

Virgo Chain Whitepaper Transform agriculture and farming practice

Version 1.9.6

Virgo Chain Whitepaper www.virgoplant.com

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Contants

Abstract .......................................................................................................................................................... 3

Flower industry and market overview across the world ................................................................ 4

Flowers in the USA, Canada, Mexico markets .......................................................................... 6

Flowers in Asia & China markets .................................................................................................. 6

Asia Agriculture Market of Production of Vegetable ............................................................ 7

Chinese Herbal and Medicine Market ........................................................................................ 9

The current situation of Chinese Herbal and medicine industry market ............... 9

Problem ...................................................................................................................................................... 10

The Asian market and its consumption ................................................................................... 10

Water, electricity, Small land size and other limiting factors ........................................... 10

Small and fragmented holding size ................................................................................ 10

Water and electricity will be key limiting factors ........................................................ 11

Self-sufficiency policy .......................................................................................................... 11

R & D .................................................................................................................................................. 12

Virgo chain solution ................................................................................................................................ 13

Virgo plant factory ......................................................................................................................... 13

The core technologies .................................................................................................................. 13

Virgo Product Assurance (VPA) ................................................................................................. 14

Transparency highlights good ethics and practices ............................................................ 15

Increased Traceability in agriculture supply chain ...................................................... 16

Ensuring Food safety and security with blockchain technology in the agriculture

supply chain ............................................................................................................................ 16

Supporting Small-scale farmers and cooperatives .................................................... 16

Transforming transactions in agriculture supply chain ............................................. 16

Virgo Chain and Blockchain ................................................................................................................. 17

Overview ............................................................................................................................................ 17


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Data storage ..................................................................................................................................... 19

Virgo chain ........................................................................................................................................ 21

Blockchain ......................................................................................................................................... 22

Virgo Chain Token (VCT) ....................................................................................................................... 24

Token Distribution .......................................................................................................................... 26

Road Map and Milestone ............................................................................................................ 27

Financial Plan ............................................................................................................................................ 28

Team ............................................................................................................................................................ 32

Legal ............................................................................................................................................................. 35


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Abstract

This whitepaper describes in detail how Virgo chain can disrupt and transform agriculture and

farming practice with the launch of a smart blockchain based, closed agricultural ecosystem.

This high-throughput consortium connects investors, farmers, processors, distributors,

retailers, customers and regulators. Blockchain technology brings full anonymity in the

agriculture supply chain, which would create an immutable and trust-worthy platform, that is,

Virgo Products Assurance (VPA). As the heart of the Virgo chain, VPA aims to create a new

agriculture and food product standard facilitating the tracking of faulty or unsafe products

back to their source, the verification of records and assets to ensure products quality, safety

and security. Virgo chain is being designed to transfer the agriculture and farming into a new

era through the innovative use of the cutting-edge technologies, including IoT-based plant

factory, net-zero and energy-efficient farming technologies, AI, big data automation,

blockchain, flower and food process engineering and the standardization of products and

services.

The Virgo chain team is supported by both Virgo Plant Factory Limited founded in August 2019

and Cenith Energy Corp in August 2002. Since its inception in the August 2002 in Ontario,

Cenith Energy Corp has been endeavoring itself in researching & designing, engineering,

managing, and manufacturing of clean energy and environment protection businesses. So far,

it has achieved the forefront of the world in developing smog solutions, water treatment

solutions, organic wastes, solar farms, smart devices, plant factory, future house, and featured

townships economically.

Businesses are waking up to the opportunities presented by a rapidly- growing flower and

food market in Asia, which may be worth more than US$5 trillion each year by 2030, as imports

are substituted with high-value and locally-produced flowers and food, as per the Asia

Agriculture Status Report. The major problems afflicting the flower and food market, include

lack of finance, lack of standardization in processing and packaging, counterfeiting or food

fraud. The Virgo Chain Coin project is set up to solve the aforementioned problems, with a

particular focus on Asia Pacific Area.

The first round of financial plan is to raise US$ 88,000,000, of which the US$10,000,000 is used

to create the first version of the above ecosystem; while the other US$3x26,000,000 are to

build 3 advanced, IoT based plant factories, which are for rose growing in Guangzhou, Beijing,


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and Shanghai. Each of the rose plant factories occupies an agricultural land of 100 acres

minimum. Return on investment (ROI) is within 3 years beginning with the completion of

construction of the plant factory. The US$ 88 million are worth 20% of the initial share A in

the financing of Virgo Plant Factory Limited.

Flower industry and market overview across the world

If we look at history of commercialized flowers of the world, we will find that flowers have

been demand dramatically from 1980, where the traditional transportation of flowers

dominated, to 2025, where that modern and internet will do so. Below is a projection from

SAF to show where consumers buy fresh flowers by number of stems:

The total land area of the world was 650,180 hectares, and global floriculture was estimated

to be US$ 55 billion dollars in 2015. Below show those typical countries, which were mainly

exported the flowers to the world in 2015 based on the lands they used in their countries.


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Below showed the percentage of each country, which was mainly exported the flowers to the

world in 2015.

Take above picture as an example that Colombia had a larger presence in USA, Canada, UK,

Japan, and Korea; while Ecuador larger presence in Russia, Germany, China, and Spain.

1,426

4,039 4,500

7,532

6,750

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Ethiopia Kenya Ecuador Colombia Holland

The area of each country,

which was mainly exported the flowers to the world in 2015

6%

17%

19%

31%

28%

% of each country, which was mainly exported the flowers to the world in

2015

Ethiopia Kenya Ecuador Colombia Holland


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Flowers in the USA, Canada, Mexico markets

In 2017, 80% flowers were imported in USA, of which, 65% were from Colombia, 20% Ecuador,

6% EU, 4% Canada and 2% Mexico, while 20% were domestically grown. Below were the value

and origin of flowers imported to the USA 2012 to 2016:

The cut flower sectors were greatly reduced since the 1980s due to imports, wholesales in

2015 was US$374 million. Products mix has changed significantly since the 1990s, and now

specializes on flowers not imported in large quantities: Lilium, delphinium, gerberas, iris, tulips,

and peonies. Of the 420 producers (in 1992, 900), 78% of the cut flower value are from

California, 3% Florida, 4% Hawaii, 6% Washington, 3% Oregon, 3% New Jersey, and 2%

Michigan. Currently the cut flower growers have launched aggressively “locally grown”

campaign to promote consumption of domestic flowers.

The consumption growth is 10-12%, exported to USA 4-5% from Canada and Mexico. There

are 85% retail florist, 10% supermarket, 5% internet. About 60% of the stems sold in Canada

are grown in the USA.

Flowers in Asia & China markets

Below showed comparison how each main country exported the stemmed flowers to Japan,

China, Korea, and Australia between 2013 and 2017:


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Asia Agriculture Market of Production of Vegetable

Asia is home to more than half of the global population and plays a significant role in the global

food chain. While its high demand makes it a decisive component in the market, the low

percentage of exports in food and agriculture shows the recurrent struggles the continent has

to face. The main challenges that Asia presents when it comes to meeting the food and

agriculture demands are related to its land and resources:

- The arable soil is limited, and its quality keeps deteriorating while Asia’s production of

yields is lower than in most other regions.

- The water is depleting and the management of this and other resources is poor.

- The farming practices used are inefficient and the inadequate infrastructure is limiting

any future production.

Over the past 50 years, Asia has seen some improvement regarding all of those points, but has

yet to get to a level where it can satisfy its growing population, meet its high demand for food

and address all the environmental concerns.

Key Facts:

• The Asia region is a decisive component in the global food chain, accounting for 19%

of total global food and agriculture exports and 31% of total food and agriculture

imports


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• Asia’s large and growing population, coupled with rising incomes and a burgeoning

middle class, will continue to drive demand for food & agricultural commodities and

resources

• On the other hand, Asia cannot produce enough to support itself. Limited arable land,

inadequate water and poor resource management, low farm yields, environmental

and soil degradation and infrastructure inadequacy are limiting production.

Consequently, Asia and especially China’s need for imports and investment locally and

abroad is likely to increase

• Asia agribusiness and food & agriculture companies are likely to grow in size and scope

to meet the increasing demand, national policies, rising organizational capabilities,

and integration and consolidation throughout the value and supply chains.


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Chinese Herbal and Medicine Market

The current situation of Chinese Herbal and medicine industry market

In 2016, the State Council promulgated the Outline of the Strategic Plan for the Development

of Traditional Chinese Medicine (2016-2030), paving the way for the development of the

Chinese medicine industry in the next 15 years. The outline points out that by 2030, the

coverage of Chinese medicine services will be fully covered, and the ability of Chinese

medicine health services will be significantly enhanced, making greater contributions to

economic and social development. In terms of details, “establish a system for monitoring and

information management of chronic diseases and Chinese medicine, promote the

establishment of a community health management model that integrates Chinese medicine

content, carry out Chinese medicine health interventions for high-risk groups, and improve

the health management level of traditional Chinese medicine at the grassroots level”,

“Developing the development of traditional Chinese medicine non-drug therapy” To give full

play to its unique role in the prevention and treatment of common diseases, frequently-

occurring diseases and chronic diseases." The government has always maintained a supportive

attitude towards the Chinese medicine industry and set the tone for long-term development.

The unique role of proprietary Chinese medicines in disease prevention and health care is

gradually gaining importance.


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Problem

The Asian market and its consumption

Asia’s ever-growing population presents the number one challenge that the continent has to

face when it comes to its output in the global market. The predicted increase is of up to 5.1

billion people inhabiting these regions by 2050. China and India alone account for a majority

of the global cereal and palm oil consumption. While the first also takes on 25% and 27% of

soy and meat consumption in the world.

The continuous growth in Asian economies plays an impact on both the amount of food

consumption and the composition. Compared to Europe and the US, which forecast a GDP

growth of 1.9% and 2.5% respectively, Asia is predicted to see a GDP growth of about 6.5%

each year.

Water, electricity, Small land size and other limiting factors

As the population keeps growing and the demand for food gets higher, an increase in yields is

required to follow. What has stopped the Asian regions from taking action and already

meeting the current needs for food and agriculture?

Mostly, changes in cropping patterns and not enough modern seed varieties that can be

planted. The land is already only arable in part and the water resources are limited, while the

use of fertilizers and chemical pesticides over the years has accentuated the degrade of soil

quality. A solution would be to consolidate farmland and better manage the water resources,

but the high demand for both makes it difficult to apply this change.

Small and fragmented holding size

Despite being home to a majority of the global population, Asia has only got one-fifth of the

world’s agricultural land. Its average holding size is of 1 hectare and with the fragmentation

of holdings, it goes to about 3.2 parcels per holding. This leads to smallholders managing a

portion that makes up most of the available agricultural land, often rising to the majority of

arable soil.


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Water and electricity will be key limiting factors

Water plays another significant role in the limitation of Asia’s production. For example, China

presents a huge imbalance in water resources, with the North having over half of the

cultivated land but only about 20% of the water to keep them going. A temporary solution

was to rely on the water found underground, which has now led to a decline in water levels.

Not only that, a good part of the water available is often polluted due to the overuse of

fertilization and the growing industrialization of the regions. The Guangdong province of China

saw an example of the consequences to those practices when they noticed that nearly half of

the rice samples produced had excessive levels of cadmium.

India, instead, struggles with the water resources being repeatedly depleted as a result to the

excess consumption for food production. This is partly due to the highly inefficient method of

irrigation used, which took more water than necessary and still leaves a majority of the

cultivable land dry. As the contamination of water continues, sometimes even due to sewage

and agricultural run-off, India risks having a 50% water deficit within the next decade.

Electricity plays a decisive role in the environment-controlled greenhouse accurate growing.

However, the problem of uncoordinated development of power supply and power grid still

exist. For example, China’s energy production and consumption are reversely distributed. Too

much electricity is a burden of the underdeveloped areas, at the same time, the electricity

supply will be the challenge for most plant factories. The impact of energy consumption on

the modern agricultural environment around the world is enormous. This is an important

engineering issue like Tesla’s application to vehicles. The mission of energy conservation and

clean energy to agriculture may be greater than the electrification of vehicles or grids.

Self-sufficiency policy

Back in the 1960s, the Asian governments adopted a self-sufficiency policy in food production

with the intention of helping the rural poor population. Since rice and pulses were the main

foods being consumed, the policy guaranteed that the domestic production of that produce

could continue while trade was limited. The subsequent improvements in farming made sure

that the rural living conditions could also improve while also impacting the food consumption

patterns.

However, the regional governments that support the self-sufficiency policies have also

distorted the local markets due to minimum purchase price floors or import quotas. This has


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led to distress and strained national budgets, as demonstrated by Thailand’s rice program and

the Indian sugar market.

R & D

Overall, the commitment shown by Asia to improve its agriculture with due research and

development (R&D) is quite low when compared to the rest of the world. Especially when

measured by ratio of public agricultural R&D to agricultural GDP.

Nevertheless, the spending on research and development has been increasing since the 1990s

and its positive impact is visible in the growth of Asia’s agricultural productivity. As the

demand for resources increases alongside its population, this commitment plays an essential

role in the necessary transformations happening across Asia and the Pacific.


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Virgo chain solution

As the leading company in North America, Virgo team combined variety of high tech

professionals, including but not limited to growing and planting, bid data automation,

computer software and hardware, sensors, clean energies, engineering soils, liquid nutrition,

penetration of each layer of photosynthesis, extraction, N2 refrigeration & transportation

system, and blockchain technologies etc. Virgo chain solution aims to solve the problems in

the agriculture industry today.

Virgo plant factory

Virgo plant factory is being designed to transform the agriculture and farming through the

innovative use of the cutting-edge technologies including IoT-based growing process, net-zero

and energy-efficient farming technologies, AI and big data automation as well as smart

blockchain based agriculture ecological system technology. Virgo plant factory will take

greenhouse agriculture to new heights. We pursue better, smarter and more efficient

technologies that make human life better, smarter and more efficient.

Part I of a flower plant factory in Canada

The core technologies

The core technologies of the plant factory will include but are not limited to 1) process layout;

2) nutrient solution; 3) engineering soil & fertilizers; 4) penetration of special photosynthesis;

5) each layer of photosynthesis; 6) AI; 7) blockchain application, smart contracts, and relation

between our plant factories and customers; 8) clean energy power and battery system; 9)

cleanliness treatment of environment; 10) sewage treatment; 11) garbage disposal; 12) sensor

systems of temperature, relative humidity, sunlight, water quality, oxygen content, CO2, pH,

concentration, and etc.; 13) control systems, such as light board programming, irrigation


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programming, and fan programming; 14) building automation systems; 15) structural system;

16) macro and micro electrical systems, 17) HVAC; 18) irrigation & water system supply and

drainage systems; 19) computer hardware and software systems; 20) extraction, N2

refrigeration & transportation system; 21) product assurance ecosystem.

Part II of a flower plant factory in Canada

Virgo Product Assurance (VPA)

The process of the products assurance ecosystem should include each sector, such as, planting,

pest control, picking, refrigeration, package, extraction, and transportation of nitrogen

refrigeration, blockchain in a plant factory through agencies to customers.

That is, the formulation of production management and technical specifications should

include two aspects, first, hardware, including peripheral equipment and etc., and second,

software, including management, environment, and pest control; Plants in plant factories

should be of high quality, safety, and nutrition as the minimum standards. These plants should

be always recorded on computers, in order for customers to check in and out.


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The two directors, Sam Qin & Dr. George Yin,

were on the construction site of a plant factory in Canada

The Virgo chain products assurance ecosystem (VPA) is here to service the purpose and

consumers can now expect to see the entire histories of the products they buy, and hence

make more informed decisions.

A transparent supply chain assures consumers they’re supporting brands that align with their

personal ethics. It also allows retailers, manufacturers and others to confidently demonstrate

that they’re treating workers properly, sourcing in ethical ways and caring for the environment.

Transparency highlights good ethics and practices


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Increased Traceability in agriculture supply chain

With the replacement of the centralized record-keeping system with Blockchain in the

agriculture supply chain, we would create an immutable and trust-worthy platform. This

decentralized ledger would lead to the elimination of third-parties in the system and improve

traceability. A Blockchain-enabled platform would facilitate the tracking of unsafe products

back to their source, which can be extremely helpful in preventing illness and reducing the

cost of product recalls. This would be extremely helpful for tracking poultry and seafood,

which have been scrutinized for lack of transparency in the system.

Ensuring Food safety and security with blockchain technology in the agriculture

supply chain

Under the situation of extreme crisis like environmental disasters, violent political and ethnic

conflicts, etc., Virgo chain products assurance ecosystem can be helpful in many ways. This

includes transparent delivery of international aid, verification of records and assets, for

disintermediating the process of delivery and to respond more efficiently in the wake of

humanitarian emergencies.

Supporting Small-scale farmers and cooperatives

In the traditional system, smallholder farmers have always struggled for access of funds, lack

of significant credit histories, land ownership documentation, and other issues make it difficult

to access bank loans. Virgo chain can be used to provide access to capital to small farmers by

creating investment tokens and raising funds for their agricultural businesses. Virgo

blockchain technology in agriculture supply chain can also be used to provide insurance to

these rural farmers. Blockchain could help in fairer pricing through the whole agriculture value

chain, thus providing environmental/economic sustainability to smaller farms.

Transforming transactions in agriculture supply chain

A Blockchain-enabled transaction system built in Virgo chain would improve profitability for

farmers and everyone else associated with the supply chain. Using Blockchain technology,

transactions can be processed in real-time to employees, suppliers, and distributors, etc. into

their local or international bank accounts.


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Virgo Chain and Blockchain

Overview

Above graph shows an overview of the Virgo chain platform system architecture. You can see

four layers to the platforms:

• The data and blockchain layer consist of a set of data storage solutions, that can be

used to store and access autonomous driving and smart car related data. Solutions

include various forms of off-chain storage (see below) and on-chain storage for small

sets of data that can be directly stored on the blockchain. The blockchain layer

includes a timestamping service that can be used to store hashes of blobs of off-chain

data on the blockchain, in order to prove data integrity. A data manager implements

the logic required to store and access the data in different storage modules.

• The API layer provides three different APIs for services to use. These APIs provide

access to the underlying blockchain and data storage facilities. The specific APIs are

the following:


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o Payment API: The payment API provides access to the Virgo chain token

implementation and allows services to make settlement payments between

participants of the system.

o Service API: The service API provides primitives for service to request and process

data from the underlying data layer for use in their service implementation.

o Data API: The data API provides facilities for Virgo chain data sharing services,

agriculture operations or any third-party data feeds to submit data to the underlying

data storage layer.

• The service layer allows service providers to offer different services on the Virgo

chain platform. One service provided by Virgo chain is the food safety audit. Many

other third-party services can be implemented in parallel by participating service

providers.

• At the user layer, different apps provide user interfaces to end-users. These apps

integrate Virgo chain wallets providing payment options.


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Data storage

Data storage consists of three different types of storage, as illustrated in above

• Blockchain storage is meant for small sets of critical data that require strict

sequential access guarantees. Such data may include digital asset representations a

service may wish to implement, for example, non-fungible tokens.

• Distributed storage can be used for unstructured data of a medium size that may be

stored in a file system. A gateway to the Interplanetary File System (IPFS) 1 will be

provided for this purpose. IPFS is based on distributed hash tables. Distributed hash

tables distribute the so-called buckets holding data across a peer-to-peer network.

The hash value acts as a key for allowing nodes to address data on the network. IPFS

uses this data-structure to divide files into blocks and stored across the network. Files

1 The Interplanetary Filesystem Whitepaper. Juan Benet. IPFS - Content Addressed, Versioned, P2P File System (DRAFT 3). https://github.com/ipfs/papers/raw/master/ipfs-cap2pfs/ipfs-p2p-file-system.pdf

https://github.com/ipfs/papers/raw/master/ipfs-cap2pfs/ipfs-p2p-file-system.pdf


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are identified and addressed by their hash values. Version history of each file is

maintained in a similar manner as in the Git version control system2.

• Centralized database storage is required by high-volume structured data. In the

future, this type of data storage might be possible in a decentralized form through

projects, such as BigChainDB3. Once sufficiently mature, Virgo chain might decide to

include such a decentralized structured data storage option. Centralized data storage

space can be provided by service providers or can be purchased from the Virgo chain

platform, depending on the type of database management system required.

Any off-chain data feed may make use of the blockchain timestamping service to store a

timestamped hash of the data on the blockchain. This acts as a digital fingerprint proving that

the data has not been modified since insertion.

2 Git version control system. https://git-scm.com/

3 BigChainDB https://www.bigchaindb.com/

https://git-scm.com/

https://www.bigchaindb.com/


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Virgo chain

At the heart of the Virgo chain solution is the Virgo chain products assurance ecosystem (VPA).

This high-throughput consortium blockchain provides a high-throughput distributed ledger.

The system is maintained by participating stakeholders in the Virgo chain ecosystem that

wishes to operate a Virgo chain node.

BLOCKCHAIN FOR FLOWERS AND FOOD PRODUCTS ASSURANCE ECOSYSTEM

1. The data layer is the bottom layer of Public Chain, storing transaction data,

encrypting data collected by Virgo chain OS and other interactive data. The data

layer encapsulates the chain structure of the underlying off-chain data storage, the

associated unsymmetrical public key data encryption technology and the

timestamping service that helps secure off-chain data by storing timestamped

digital fingerprints of off-chain data.

2. Second, the network layer is the network interaction layer responsible for data

transmission on the network. The network layer is built on the basis of the IP

communication protocol and P2P network, including distributed networking

mechanism, data dissemination mechanism, and data validation mechanism.

3. The consensus layer implements Virgo chain’s consensus protocol. The consensus

layer is based on Delegate Proof of Stake and token holders can vote the for the

nodes acting as validators and new block generators.


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4. The incentive layer is aimed at incentivizing Virgo chain partners for participating

in the Virgo chain ecosystem construction and project cooperation.

5. The smart contract layer is the provides a programmable virtual machine interface,

allowing the implementation of on-chain primitives used by the different Virgo

chain applications.

6. The application layer encapsulates various application scenarios and use cases of

Virgo chain, providing a programmable environment and API, transforming business

rules into an automatic execution contract through an intelligent contract.

Virgo chain will have the following characteristics:

• All participants in the blockchain system have to be registered

and authenticated users.

• Participants can use their holdings in Virgo chain token to vote for

validator nodes that participate in the consensus protocol.

• Blocks are issued by a very efficient voting consensus

protocol between the delegates.

• The voting protocol allows blocks to be issued when

required, removing the need for a block generation time and leading to fast

transaction confirmation.

Blockchain

Virgo chain is going to use Blockchain technology to revolutionize the agriculture and farming

practice. Virgo chain is being designed to optimize the agriculture and farming through the

innovative use of the cutting-edge technologies. Virgo chain ecosystem runs on blockchain

technology, bringing full anonymity, minimal processing times and minimal fees, fraud

prevention, etc. All information and transactions records are on blockchain driven by smart

contracts on a stable, open source platform.

We aim to develop innovative and highly sophisticated technology architecture to enable fast

and secure transactions without experiencing the drawbacks of the present system. Security

and ease of use are some of the core features of our agriculture and farm ecosystem, aligned

with our goal to create a new agriculture and food product standard.


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Blockchain is a shared ledger where transactions are permanently recorded by appending

blocks. The blockchain serves as a historical record of all transactions that ever occurred; from

the genesis block to the latest block, hence the name blockchain. It is the authoritative record

of every Bitcoin transaction that has ever occurred. Blocks are packages of data that carry

permanently recorded data on the blockchain network. It is a collection of transactions that

have occurred during a period of time.

The Virgo chain tokens will facilitate the tokenization of the agriculture and farm sector. We

believe that our token will be adopted widely across the agriculture and food processing

industry because of our win-win framework. Virgo chain tokens will be issued on the Ethereum

network and will be freely traded on the open market.

The smart contract technology will provide an automated and transparent system for records.

It provides indispensable advantages, such as openness, immutability, and censorship-

resistance of all stored information. The smart contracts, which will be carrying the

information, make these processes completely transparent. By using smart contracts

everything will be automated and set inside the system. And once the data, transaction, and

any other relevant information is connected to smart contract, it cannot be reversed, ensure

the manufacture products.


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Virgo Chain Token (VCT)

Name Virgo Chain Token

Symbol VCT

Decimals 18

Total Supply 1,000,000,000

Virgo chain token is fungible token implemented compliant with ERC-20 and ERC-223

standards.

The token has the following characteristics:

• Total supply of the token is large enough to scale in a growing market.

• Individual are small enough to allow for micro-payments.

• The token is divisible (18 decimals) to deal with a potential value increase.

• Total supply is limited to 1,000,000,000 tokens.

As an ERC-20 standard compliant token will implement the following interface:

contract ERC20Interface {

function name() view returns(string name);

function symbol() view returns(string symbol);

function decimals() view returns(uint8 decimals);

function totalSupply() public constant returns(uint);

function balanceOf(address tokenOwner) public constant returns(uint balance);

function allowance(address tokenOwner, address spender) public constant

returns(uint remaining);

function transfer(address to, uint tokens) public returns(bool success);

function approve(address spender, uint tokens) public returns(bool success);


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function transferFrom(address from, address to, uint tokens) public

returns(bool success);

event Transfer(address indexed from, address indexed to, uint tokens);

event Approval(address indexed tokenOwner, address indexed spender,

uint tokens);

}

In order to avoid tokens getting stuck by being sent to contracts instead of end-user wallets

in error, the ERC-223 standard extensions are also implemented. To this end the following

function is implemented:

function transfer(address _to, uint _value, bytes _data) returns (bool);

The token contract implements a few additional functionalities not covered by the ERC-20 and

ERC-223 standards.


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Token Distribution

The distribution of the token is as indicate above 20 % of the token’s total supply will be put

up for the private and public sale rounds, while the 80 % allocated to the team will be locked

up for five years.

80%

20%

Token Distrubution

Team Investors


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Road Map and Milestone

Below is a typical construction timeline of a plant factory. There will be around 16 months to

complete a plant factory from Design planning to Formal delivery. In the design period, Design

Q3 2019

•ERC-20 Token Deployed

•Community Building Activity

•Intial Service Provider Partnership

•Exchange Listing

Q4 2019

•First Virgo Chain Plant Factory initiated

•Virgo Chain platform blueprint

•Community Building Activity

Q1 2020

•Virgo Chain platfrom beta 1

•Centralized data storage

•Initial data feed intergration

•Second Virgo Chain plant factory begins

Q2 2020

•Virgo Chain platform beta 2

•Virgo Chain flowers and food safety audit begin

•Decentralized storage intergration

Q3 2020

•Virgo Chain platfrom release

•Token migration event

•First their party service betas

Q4 2020

•First Virgo Chain plant factory complete

Q1 2021

•Second Virgo Chain plant factory complete

•First batch of plants harvest with Virgo Chain


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plan will take 1 week, Initial design 4 weeks, Medium term design 6 weeks, Construction

drawing design 5 weeks, Design coordination 4 weeks, Bidding and tendering 4 weeks,

Construction coordination 7 weeks, Construction 9 weeks, Debugging and testing 4 weeks,

Test run 2 weeks, maintain 2 weeks, and Formal delivery 2 weeks.

In terms of Initial design, every typical plant factory will include 1) process layout; 2) nutrient

solution; 3) engineering soil; 4) special analysis of photosynthesis; 5) each layer of

photosynthesis, dropper and induction probe for each plant; 6) AI; 7) blockchain application:

8) clean energy power and battery system; 9) cleanliness treatment; 10) sewage treatment;

11) garbage disposal; 12) temperature, relative humidity, sunlight, water quality, oxygen

content, CO2, pH, concentration, and environment sensing systems, such as ratios; 13) control

of production process, such as light board programming, irrigation programming, and fan

programming; 14) building automation systems; 15) structural system; 16) macro and micro

electrical systems, 17) HVAC; 18) water supply and drainage and drainage; and 19) computer

hardware and software systems.

Financial Plan

To make an example, to build a typical plant factory, which are making rose growing, is around

USD$26 million; in the same time, the rose plant factory has to be stand on an agricultural

land of 100 acres minimum. Return on investment (ROI) is within 3 years beginning with the

completion of construction of the plant factory.


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To make an example, to build a typical plant factory, which are making tomato growing, is

around USD$23 million; in the same time, the tomato plant factory has to be stand on an

agricultural land of 70 acres minimum. Return on investment (ROI) is within 3 years beginning

with the completion of construction of the plant factory.

To make an example, to build a typical plant factory, which are making medical cannabis

growing, is around USD$26 million; in the same time, the medical cannabis plant factory has

to be stand on an agricultural land of 2 acres minimum. Return on investment (ROI) is within

3 years beginning with the completion of construction of the plant factory.

To make an example, to build a typical plant factory, which are making medical Epimedium

growing, is around USD$29 million; in the same time, the medical Epimedium plant factory

has to be stand on an agricultural land of 500 acres minimum. Return on investment (ROI) is

within 3 years beginning with the completion of construction of the plant factory.


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Table below is a financial analysis of the typical rose plant factory, which will show the sales

will meet the requirement within 3 years to pay off the primary investment of USD$26 million.


Page 31 of 42


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Team

Sam Qin

Director of Virgo Plant Factory Limited

- Designed and built Ontario's first 100-acre net zero energy plant

factory

- Responsible for and participating in the construction of 6,700 net

zero energy houses in the three western provinces of Canada

- Responsible for developments of dozens of megawatts of solar

power ground plants in Ontario Canada

- Master degree of mechanical and material engineering, UWO,

Canada

Jason Li, PhD


- Responsible for and participating in the construction of 6,700 zero-

energy houses in the three western provinces of Canada

- AI specialist

- Doctor degree of mechanical and material engineering, UWO,

Canada


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Hai Xie


- Former private advisor to the Prime Minister of Canada

- Former assistant to CEO of SNC-Lavalin

- MBA, Canada

Joyce Li


- Plant factory professional

- Clean energy professional

- Big health professional

MBA, Canada


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George Yin, PhD


- New agricultural plant factory professional

- Clean energy system design and project construction expert

- North American experienced project management talent

- Microgrid and energy storage technology professional

- Energy efficient technology and system design professional

- Automation setup and system monitoring professional

Registered Professional Engineer in Ontario, Canada, Ph.D. in

Mechanical Engineering, Germany.

Julie Li


Senior international financial investment professional

Rich experience in fund management

investment management expert of plant factories

MBA, China


Page 35 of 42

Legal

PLEASE CAREFULLY READ THIS WHITEPAPER – IN PARTICULAR, THE IMPORTANT

INFORMATION SET OUT BELOW, INCLUDING THE FURTHER INFORMATION ABOUT RISKS –

BEFORE MAKING YOUR DECISION TO PURCHASE VIRGO CHAIN TOKENS. IF YOU HAVE ANY

QUESTIONS ABOUT VIRGO CHAIN PLANT FACTORY LIMITED (THE “COMPANY”), ITS BUSINESS

PROJECTS, THE VIRGO CHAIN TOKENS OR OTHER RELATED CIRCUMSTANCES, PLEASE

CONSULT A COMPETENT BUSINESS, LEGAL, TAX OR OTHER ADVISOR. IF YOU ARE IN DOUBT,

OR IF ANY CIRCUMSTANCES REMAIN UNCLEAR TO YOU, YOU SHOULD REFRAIN FROM

MAKING A PURCHASE.

No prospectus and no offer to purchase securities or financial instruments

The planned Virgo chain tokens have been designed as pure utility tokens and are not,

therefore, intended to constitute securities or financial instruments according to their

structure. Consequently, the present whitepaper does not constitute a prospectus or an

offering document for securities or financial instruments and is not intended to constitute a

prospectus or an offering document for securities or financial instruments in any jurisdiction.

This whitepaper merely serves the purpose of describing the project but does not constitute

an offer to purchase, or an invitation to submit an offer to purchase the planned Virgo chain

tokens. Insofar, this whitepaper also does not constitute investment advice recommending to

purchase the planned Virgo chain tokens or to disinvest from other securities, financial

instruments or other assets. Incidentally, there is no investment brokerage or investment

advice of a security or financial instrument subject to authorization.

No official examination or approval

This whitepaper has not been examined or approved by any public authority, nor has it been

submitted to any public authority for examination or approval. There are no express statutory

requirements as to the contents of this whitepaper; the structure of this whitepaper and the

information contained herein are based exclusively on the decisions of the Company’s

management.

Formation of a legal relationship only on the basis of separate agreements, documents and/or

terms and conditions


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Any legal relations between a purchaser of the planned Virgo chain tokens and the Company

will not be established through this whitepaper but through separate agreements, documents

and/or terms and conditions governing the rights and obligations of the purchaser and of the

Company. Insofar, the provisions of the aforesaid agreements, documents and/or terms and

conditions will take precedence over the description given in this whitepaper in the event that

the description in this whitepaper is unclear in any respect.

Excluded purchasers

The token sale (including any pre-sales) is not for purchasers having their domicile, their tax

residence or their habitual residence in, or initiating the purchase of the tokens from or via, a

country where the sale or purchase of cryptocurrencies is prohibited or is permitted only

under certain conditions (e.g. an official license), which has been classified by the Financial

Action Task Force (FATF) as a high-risk or other monitored jurisdiction with regard to money

laundering or terrorism financing, or against which an embargo or sanctions have been

imposed, in particular by the United States of America or the EU, (“excluded third parties”).

Such countries particularly include Bosnia and Herzegovina, the Democratic People’s Republic

of Korea, Ethiopia, Iran, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu and

Yemen, but also the United State of America, the People’s Republic of China, Singapore and

Cuba (“excluded countries”). This whitepaper may not be reproduced, in whole or in part, in

whatever manner, or be passed on to third parties without this important information and the

further information about risks. Furthermore, this whitepaper may not, in whole or in part, in

whatever manner, be passed on to excluded third parties.

High risk of loss

The purchase of Virgo chain tokens involves significant risks. This is why a purchaser should

not use a substantial portion of his, her or its property to purchase Virgo chain tokens and be

able to bear the total loss of the money invested. Furthermore, purchasers should already

have experience in purchasing and/or holding cryptocurrencies issued by young companies,

be able to understand the economic and technical causal relations between the Company’s

entrepreneurial activities and the Virgo chain tokens and be able to assess how they will affect

the value of the planned Virgo chain tokens. A lack of relevant experience on the part of a

purchaser will nonetheless not give rise to increased obligations of the Company to provide

information.

Loan-based financing not recommended


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Purchasers are strongly advised against taking out a loan to finance the purchase of Virgo

chain tokens. This is because the obligations to pay capital and interest will continue to exist

even if the purchased Virgo chain tokens lose their value. In this case, the purchaser might

even have to le for personal bankruptcy.

Whitepaper does not replace competent advice

The purchasers' attention is drawn to the fact that this whitepaper gives only an overview of

the Company's planned investment and business activities and of the planned Virgo chain

tokens. This whitepaper cannot, however, replace business, legal, tax or other advice.

Consequently, before making a purchase, each purchaser should examine the opportunities

and risks involved on his, her or its own responsibility – where appropriate, assisted by

external advisors. Purchasers are particularly advised to obtain advice on the legal, regulatory

and tax consequences of a purchase.

The Company does not accept any liability for the personal economic objectives that

purchasers wish to achieve by purchasing Virgo chain tokens.

Calculations, forecasts, and forward-looking statements

All calculations and/or forecasts set out in this whitepaper are essentially based on the

experiences or assessments made by the Company’s management. In this respect, this

whitepaper additionally contains forward-looking statements – in particular, subjective

objectives for the further development of the Company’s business, which involve

uncertainties and risks, however. Such statements express the Company’s current

assessments and expectations with regard to future events. These assessments and

expectations may contain errors of perception or errors of judgment and may, therefore, turn

out to be inaccurate.

The calculations have been made with diligence and commercial prudence. In spite of this fact,

there is a possibility that certain events or developments which have not been taken into

consideration for the purposes of the calculations and/or forecasts will lead to significant

deviations between the results actually achieved by the Company and such calculations

and/or forecasts and, hence, possibly also to a loss of value of the planned Virgo chain tokens.


Page 38 of 42

Consequently, the Company cannot warrant that the developments and results described in

this whitepaper will actually be achieved. The purchaser bears the risk of deviating

developments and results.

Regulatory and other risks

The Company presumes that the issuance of the planned Virgo chain tokens by the Company,

the purchase of the planned Virgo chain tokens and the use of the planned Virgo chain tokens

(pure utility tokens) to pay for the Company’s products and services – in each case by non-

excluded third parties – are not subject to separate regulation. However, the regulatory and

quite generally the legal framework conditions for cryptocurrencies, blockchain and

distributed ledger technologies, smart contracts and their uses are, both nationally and

internationally, far from being fully developed and from providing certainty. There is,

therefore, a possibility that the issuance, purchase or administration of (including the trade in)

cryptocurrencies or the use of cryptocurrencies to pay for products or services will be

prohibited, in whole or in part, or will only be permitted subject to certain conditions, due to

national or international official or legal measures or due to court rulings. This may have

significant adverse effects on the Company’s business model (e.g. in the event that a public

authority or a court orders that the issuance of the Virgo chain tokens be reversed or the

Company discontinues its business) and on the bene t or value of the planned Virgo chain

tokens and may even result in the Company becoming insolvent or in the planned Virgo chain

tokens becoming entirely useless or worthless.

In the same manner, there is a possibility that third-party companies providing ways to trade

in cryptocurrencies, such as the planned Virgo chain tokens, will be prohibited from

maintaining the trading venue operated by them in the absence of an appropriate official

license; if this happens, there may be no trading venues where to exchange the planned Virgo

chain tokens for other cryptocurrencies or at currencies (i.e. legal currencies, such as the Euro).

This, too, could result in the issued Virgo chain tokens becoming useless or worthless to their

purchasers.

Utility tokens do not grant any property rights or administrative rights in the Company

The planned Virgo chain tokens are intended to be structured as pure utility tokens with which

to pay for the Company's products and services. The planned Virgo chain tokens will not grant

any property rights or administrative rights in the Company, i.e. they will not grant any share

in the Company’s profits or losses or in an increase or decrease in the value of the Company’s


Page 39 of 42

assets or any rights to vote when resolutions are made at the Company, rights to attend

shareholder meetings of the Company or other shareholder rights. As pure utility tokens, the

Virgo chain tokens are not suitable as an investment in the development of the Company’s

business.

No repayment

As the Virgo chain tokens will be pure utility tokens, the purchase prices paid for the issued

Virgo chain tokens will not be paid back in exchange for the return of the issued Virgo chain

tokens. Purchasers of the planned Virgo chain tokens must, therefore, take into consideration

that the money used by them to purchase Virgo chain tokens will be bound within the tokens

and can, at best, be exchanged again for at currencies via third-party trading systems, to the

extent that such systems are available. To the extent that a third party who is willing to

exchange at currencies for the purchased Virgo chain tokens cannot be found, there is a risk

that the purchased Virgo chain tokens will be useless or worthless to the purchaser.

Tradability and fluctuations in the value of the Virgo chain tokens

A promise that the planned Virgo chain tokens will be tradable cannot be given. Even though

the Company seeks to have the planned Virgo chain tokens listed for trading on one or more

trading systems, there is a possibility that the Company will not succeed in finding one or more

appropriate trading systems that are willing and able to list the planned Virgo chain tokens for

trading. Even if the Company succeeds in having the planned Virgo chain tokens listed for

trading at one or more trading venues, there is a possibility that there will be no trade for lack

of interested purchasers or sellers.Even if and to the extent that the Company succeeds in

having the planned Virgo chain tokens listed for trading on one or more trading systems,

purchasers should be prepared for very significant fluctuations, including short-term

fluctuations, in the determined price and, hence, in the value of the purchased Virgo chain

tokens. Furthermore, there is a possibility that the prices or values of the planned Virgo chain

tokens develop differently on different trading systems. How the planned Virgo chain tokens

perform on trading systems may be greatly influenced by the performance of other

cryptocurrencies, such as Bitcoin or Ether, even if the Company’s operational business does

not provide any reason or basis for such changes in performance (if any).

The Company does not guarantee that the trading systems where the planned Virgo chain

tokens will be listed for trading (if any) will determine the prices in a transparent manner or

will be able to meet the legal or official requirements (if any).


Page 40 of 42

A purchaser should further take into consideration that the trade in purchased Virgo chain

tokens will probably involve costs, which will have to be borne additionally by the purchaser

and will have a further adverse effect on the value of the Virgo chain tokens purchased and/or

traded.

Dependence on computer infrastructure

Both the Company’s operational business model and the functionality of the planned Virgo

chain tokens depend to a large extent on the existence and permanent availability of a well-

functioning computer infrastructure. This particularly applies to the Company, to purchasers

of the planned Virgo Chain Token, and to customers of the Company. Any problems with or

burden on a well-functioning computer infrastructure (including Internet with appropriate

capacities) would place a burden on the establishment and further development of the

operational business but also on the possibility to use the planned Virgo chain tokens and

might even render the latter entirely useless or worthless. If the required infrastructure is not

sufficiently functional, this may significantly reduce the speed with which transactions

involving the planned Virgo chain tokens are handled and, hence, have a significant and lasting

adverse effect on the usability or value of the planned Virgo chain tokens.

Operational risks encountered by the Company

Like any other company, in particular, any other young company, the Company is subject to

operational risks. The development of the planned products and services, for example, may

be significantly delayed or turn out to be impossible, in whole or in part. Furthermore, there

is a possibility that the Company’s planned products or services will not be accepted on the

market. In addition, there is a possibility that the Company will be unable to obtain and

maintain sufficient licenses that are required for its operational business or that the licenses

granted are challenged by third parties, which can normally result in a large amount of costs

being incurred in defending claims and/or enforcing rights. Moreover, competitors or the

development of new products and technologies or the regulation of the Company’s

operational business, whether at national or international level, may place a significant

burden on the Company’s operational business. Operational risks, in particular those listed

above, may lead to the Company’s insolvency. At the same time, operational risks may have a

significant and lasting adverse effect on the planned Virgo chain tokens and even render them

entirely useless or worthless.


Page 41 of 42

Insufficient funding of the Company

As a young company, the Company depends on generating sufficient funds to set up and

further develop its business (including maintaining an infrastructure for using the planned

Virgo chain tokens). The plan is to use the proceeds from the issuance of the planned Virgo

chain tokens for this purpose, for a start. If the Company does not succeed in generating

sufficient funds, e.g. if the Virgo chain token ICO fails, there is a risk that the Company will be

unable to set up and further develop its business necessary, or even file for insolvency. Such

a development might have a significant and lasting adverse effect on the usability or value of

the planned Virgo chain tokens and might even render them entirely useless or worthless.

Technical risks

The planned Virgo chain tokens, by their very nature, are technology-based. Like with all other

technology-based products or services, their usability and their value are subject to a large

number of technical risks that cannot be eliminated by the Company. This particularly includes

system errors, code failures, programming errors, hardware failures, loss and/or theft of data,

hacks and/or attacks by hackers or technology-based reductions in the speed with which

transactions can be handled. Technical risks may have significant and lasting adverse Effects

on the usability or value of the Virgo chain tokens and might even render them entirely useless

or worthless.

Risks involved in the personal administration of tokens

Like any other cryptocurrency, the planned Virgo chain tokens are subject to risks arising from

personal administration. The risks arising from personal administration are, in particular,

failure or theft of the hardware used to store the purchased Virgo chain tokens or loss of

access codes, user names, passwords or private keys for accessing the infrastructure used to

store the purchased Virgo chain tokens (e.g. wallets) such that the purchased Virgo chain

tokens can no longer be disposed of and are, hence, lost for the purchaser. There is

additionally a risk that transactions which have been initiated incorrectly cannot be reversed

because of how the blockchain technology works and that the transferred Virgo chain tokens

are, hence, irretrievably lost. Furthermore, it needs to be taken into consideration that using

inherited Virgo chain tokens is, de facto, impossible because of the technology used for the

planned Virgo chain tokens and also because there is no or only an insufficiently developed

legal framework.


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Tax risks

Not only are there no unambiguous and clear legal framework conditions in connection with

cryptocurrencies, the national and international tax classification of transactions involving

cryptocurrencies also remains to be finally clarified, both for the Company and for purchasers

of cryptocurrencies. There is, therefore, a possibility that transactions involving

cryptocurrencies will, both on the part of the Company and on the part of purchasers, give

rise to tax burdens which place a burden on the Company’s operational business or which

reduce the usability or value of the purchased Virgo chain tokens or even render the latter

entirely useless or worthless.

Disclosure of personal data on the basis of official measures

Purchasers must have their identity verified in accordance with the anti-money laundering

rules and the rules to combat terrorism financing and tax evasion and disclose personal data

in relation to them to the Company before purchasing the planned Virgo chain tokens. The

purchasers of the planned Virgo chain tokens should be prepared that the Company may be

required to disclose the collected personal data to competent authorities on the basis of

national or international official or legal measures.

Interaction of risks and cumulative risks

Each of the described risks alone may have significant and lasting adverse effects on the

usability and value of the planned Virgo chain tokens. There is a possibility that several risks

will materialize simultaneously, trigger each other, or reinforce each other and that this will

enhance the significant and lasting adverse effects. Both the materialization of individual risks

and the materialization of cumulative risks may render the planned Virgo chain tokens entirely

useless or worthless.

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