Regen Atlas
Regen Atlas collaborates with OpenVino to list wineries producing tokenized organic wines.
OpenVino is a real-world asset (RWA) protocol offering organic wine tokens. These tokens represent bottles of organic wine corresponding to specific vintage years. OpenVino is deployed on Ethereum, and works as follows:
Organic Wine Tokenization: When the harvest is finished, OpenVino issues fungible ERC-20 tokens that represent the bottles produced from that year's yield. The quantity of tokens minted matches the total bottle production of that vintage.
For example, one MTB18 token represents one MTB* "Mike Tango Bravo" wine bottle from the 2018 harvest.
Auction: Tokenized wine bottles are initially offered through a Vintage Coin Offering (VCO) for a set period of time at a fixed price set by the winery.
For example, the period of time defined by Costaflores winery for the MTB* token was from 6th May to 25th July 2023.
Wine Maturation and Redemption: After the conclusion of the VCO, the winery sets up a liquidity pool on OpenVino's decentralized exchange (DEX)–Viniswap–allowing consumers, importers, distributors, retailers, and speculators to freely trade wine tokens. The price of the token on the exchange adjusts dynamically in real-time: Each transaction (buying or selling) influences the token price, which follows the Uniswap bonding curve. As a result, the price of wine tokens is driven by supply and demand, allowing for the dynamic valuation of wine over time—just like the value of the wine itself increases as it ages. When the wine is ready for consumption, token holders can redeem their tokens for bottles of wine. During the redeem process, the buyer pays the shipping costs and their tokens are “burned”.
For instance, an MTB18 token represents a bottle of MTB* "Mike Tango Bravo" wine (which undergoes a three-year aging process in oak barrels, wine maturation and aging process depending on the type of wine) from the 2018 harvest and can be redeemed since 2021. Upon redemption, the holder pays for shipping, and the tokens are burned to remove them from circulation.
Token Yield and Trading: Wine tokens can be redeemed for bottles of wine for a period of time defined by the winery. Unredeemed tokens can continue to be actively traded on Viniswap, boosting liquidity in this specialized market with limited assets. Although a wide range of real-world assets (RWA) are being tokenized, wine is unique in that its value evolves as it ages. Viniswap’s elastic pricing will help reflect this commodity market dynamic.
For instance, MTB tokens can be redeemed for bottles of wine for 10 years from launch date.
Regen Atlas now lists OpenVino’s wineries producing tokenized organic wine, starting with the Costaflores’ Organic Vineyard, a boutique winery in Argentina. Costaflores produces MTB* Mike Tango Bravo, red wine (blend), Malbec, Petit Verdot, and Cabernet Sauvignon.
Regen Atlas classifies OpenVino’s organic wine tokens as an Ownership token with the Commodity subtype.
Commodity ownership is the one of the most straightforward cases of ownership: by holding these RWA tokens, users possess the right to claim ownership over corresponding bottles of organic wine from specific vintages for a period of time defined by the winery. Unredeemed tokens can continue to be actively traded on Viniswap, boosting liquidity in this specialized market with limited assets.
The OpenVino’s organic wine tokens are classified with the Nativity of “Onchain Integration”, Model 3 from the RWA.xyz Tokenization Spectrum. This means assets are represented onchain but enforced offchain, with value exchanged both offchain and onchain.
While organic agriculture is crucial for sustainable development, the current system is flawed, as certifiers often lack the proper incentives to thoroughly verify producers' practices, leading to potential corruption and weakened standards.
In collaboration with Kleros, OpenVino has developed the BioDigital Certification, a self-certification system for wineries that utilizes open-source data to certify their product claims, such as: organic, biodynamic, provenance, carbon neutral, sustainability, etc. It combines camera images, IoT sensors (monitoring factors like temperature, wind speed, and soil moisture), and on-the-ground data from vineyard workers to capture essential ecological information onchain to map the certification requirements.
The BioDigital Certification is grounded in principles aligned with international organic standards. All data is publicly available, enabling verification and challenges of claims made by wine producers via Kleros, an open-source dispute resolution protocol, fostering accountability in the wine industry.
In more details, the BioDigital Certification Process is as follows (note, at present, no disputes have been raised):
Claim Requirements: Wineries review specific certification requirements set for obtaining the BioDigital Certification (organic, biodynamic, provenance, carbon neutral, sustainability, etc).
Self-Certification Upload: Wineries complete and upload their responses to the requirements from their OpenVino account to justify their claim (documents, IoT sensors, images, accounting data, etc).
Challenge Mechanism: Note that challenger identities and evidence remain undisclosed during the challenge period to prevent manipulation.
Staking/Challenge Setup: Wineries stake a bounty (e.g., 1 ETH) for 30 days, allowing challengers to present evidence.
Challenger Participation: Any challengers who believe that the certification is fraudulent, can deposit funds into the bounty and upload their evidence of fraud. The Kleros jury decentralized court determines if the certification is valid, and returns the full bounty to the winery, or to the challenger.
Outcome:
No Challenges: If no challenges arise within 30 days, the winery earns the certification badge and the bounty is returned.
Win for Winery: If the jury favors the winery, the bounty returns to them, and 1/3 of the challenger’s stake is awarded to the winery, Kleros, and OpenVino.
Win for Challenger: If the jury favors the challenger, the bounty goes to them, and the staking returns are distributed similarly. Note that if multiple challengers participate, the bounty is divided among winning challengers.
OpenVino provides wineries with the tools to create their own, open-source, wine-backed cryptoassets through tokenization. OpenVino offers consumers the opportunity to purchase, trade, and redeem tokens that represent specific organic vintages of wine. With OpenVino, wineries can self-certify their production as organic, carbon-neutral and other attributes through BioDigital Cert™️. They also develop traceability solutions for wine products, "You Drink It You Own It"
Regen Atlas grows green finance by coordinating its value chain in one global marketplace.
DISCLAIMER: This partnership announcement is for informational purposes only, does not constitute an endorsement of any tokens or assets, and should not be considered financial advice; investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Please always consult with a qualified financial advisor before making any investment decisions.