On November 25, 2024, China embarked on its first agricultural RWA tokenization venture with the Malu Grape project. The program already garnered 10 million yuan with equity investment and won another 200,000 yuan through Non-Fungible Token (NFT) sales on Shanghai Data Exchange. Through the project, vineyard data became more secure and marketable digital assets through the utilization of blockchain technology. This new, creative method taps into the booming consumer interest in Malu Grape. It further draws on a strong traceability system connected to this geographically certified Ag product.
Through the Malu Grape NFT project, they issued 2,013 NFTs, selling for 99 yuan each. These NFTs really jumped off the shelf and sold out on Black Friday, November 25, 2024! Each NFT came with some minimum perks (a 2kg grapes voucher and optional theme park ticket). Other benefits included access to an immersive virtual vineyard game and redemptions of loyalty points.
In order not to be classified as securities, the utility tokens turned into 2,024 NFTs, sold as “digital collectibles.” These NFTs of physical assets are only being exchanged on the secondary market.
The project utilized a Data Asset Shell (DAS) developed by the Shanghai Data Exchange to ensure compliance processing and data standardization. The scope of technology packaging and on-chain mapping process included sensor data from 600 mu of vineyards.
New trading restrictions began to be used. Each user can only trade a maximum of 5%, have to wait 5 days from when they receive the voucher to trade, and NFTs are burned when the voucher is redeemed. These provisions were meant to help curb volatility in the market and avoid speculative stockpiling.
The Malu Grape project serves as an important example of how blockchain and Web3 technology can mature within the agricultural sector. Currently, the project is digitizing all of VTP’s vineyard data into new digital assets. This enhances transparency and traceability, while unlocking new opportunities for investment and consumer engagement. Whether it’s the improved traceability of agrochemicals or more efficient marketplace access for farmers, this success story illustrates how digital assets can help drive value in agriculture.
The project's innovative use of the Shanghai Data Exchange's Data Asset Shell (DAS) underscores the importance of regulatory compliance and data standardization in the emerging field of RWA tokenization. The integration of sensor data from the vineyards further highlights the project's commitment to leveraging technology for improved agricultural practices.
Malu Grape has put trading restrictions in place on their project. This prudent and incremental approach seeks to better address risks associated with digital asset markets. To deter market manipulation, the project limits ownership and requires cooldown periods. This method guarantees equitable access for all applicants. The burning of NFTs upon voucher redemption adds an additional layer of control, preventing the reuse of digital assets and maintaining the integrity of the system.
