Tokenized Robo-Farm Launches in Hong Kong with 20% Yield

The Hong Kong project is a direct application of vertical farming, a method of growing crops in stacked layers indoors using artificial lighting, climate control, and hydroponics. As explained by peaq co-founder Leonard Dorlöchter at Korea Blockchain Week 2025, the facility is designed to run autonomously, producing crops like lettuce, kale, and spinach with a projected yield of 20%. This model offers significant advantages over traditional agriculture, operating with about 12 crop cycles per year compared to the typical three or four, while using one-tenth the water, no pesticides, and ten times less land.

This initiative taps into a rapidly growing market; the global vertical farming sector is expected to reach $124 billion by 2035. The core innovation lies in its financial engine: tokenization. DualMint is managing the process of turning the farm’s ownership rights and future revenue streams into non-fungible tokens (NFTs) on the peaq blockchain. This model directly links the farm’s cash flow from vegetable sales, which will be delivered via subscription to local residents, to digital asset holders, creating a novel yield-generating asset class grounded in real-world demand.

The partnership leverages the specific expertise of each company to create a seamless, on-chain operation. Peaq provides the underlying Layer-1 blockchain infrastructure built for the ‘Machine Economy,’ connecting devices and robots. KanayaAI contributes its specialized knowledge in developing automated vertical farms for dense urban environments like Hong Kong. DualMint, which specializes in bringing revenue-generating physical businesses on-chain, handles the crucial tokenization process, with an early access waiting list already open for the NFT sale.

This project is part of a broader trend in agricultural robotics, where companies are deploying AI-driven systems for tasks like weeding and harvesting in controlled environments. Examples like Opollo Farm in Arizona demonstrate the viability of modular robotic vertical farming. However, the Hong Kong venture distinguishes itself by directly embedding a decentralized financial layer, aiming to democratize investment in agricultural infrastructure that is typically capital-intensive.

The proponents frame the project as a win-win, merging blockchain, automation, and sustainable food production to provide both a critical social good and a financial return. As Dorlöchter stated, ‘We’ve entered the most disruptive time humanity has seen. The machine economy is here.’ The model aims to show how tokenized automation can enhance food infrastructure resilience, especially in land-scarce urban centers, while creating a tangible, yield-producing asset for investors.

Despite the promising outlook, significant challenges persist. The high capital and operating costs associated with energy-intensive lighting and climate control can limit scalability. Running sophisticated AI-driven robotic systems requires not only capital but also deep technical expertise and reliable power, potentially creating barriers for smaller operators and concentrating food production capabilities among well-funded entities. The success of this pioneering project will depend on its ability to navigate these economic and technical hurdles while delivering on its promised yields and production efficiency.