<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
Owning an interest in a Stellenbosch wine estate has traditionally been reserved for those with deep pockets.<\/p>\n
The launch of the Arra Vineyard Token (AVT) aims to change that by giving retail investors access to some of the economic benefits and privileges associated with a working wine farm.<\/p>\n
The AVT represents a bundle of rights linked to Arra Wines, situated off the R44 between the N1 and Stellenbosch. Token holders will not own a specific plot of land or enjoy the same rights as conventional shareholders, but will participate through a legal structure that holds a minority equity interest in the farm.<\/p>\n
\u201cThe token holders have their rights represented through a limited partnership structure,\u201d says Mark Diuga, CEO of crypto exchange Bitexen South Africa.<\/p>\n
These rights are expected to include access to the farm, wine allocations, discounts, membership events and potential royalty payments linked to bottle sales.<\/p>\n
Under the proposed model, between R7.50 and R15 of every bottle sold will be converted into a stablecoin and added to an auditable smart contract.<\/p>\n
The proceeds will then be distributed among token holders who stake their tokens, in proportion to their holdings. Returns will therefore depend partly on how much wine the estate sells.<\/p>\n
Arra is targeting annual sales of 250 000 bottles, although Diuga stresses that investors will carry the normal risks associated with a working agricultural business.<\/p>\n
\u201cVineyards are typically a return on ego and not a return on investment,\u201d he says. \u201cThis is not a get-rich-quick crypto scheme where we\u2019re making impossible assumptions on returns.\u201d<\/p>\n
If bottle sales fall, the royalty payment will fall with them.<\/p>\n
Weather, production volumes and consumer demand will all affect returns. Some of the money raised through AVT is intended to expand the vineyard\u2019s distribution and increase sales.<\/p>\n
The model could also create an unusually loyal group of customers. Someone who owns tokens linked to a particular vineyard may be more inclined to choose its wines when confronted with several competing labels on a shop shelf.<\/p>\n
Diuga believes this emotional connection is central to the project.<\/p>\n
Token holders will be able to visit the farm, taste the product and potentially participate in decisions such as label design and brand development.<\/p>\n
Bitexen, which has about five million customers globally, has operated for eight years across markets including Turkey, Eastern Europe and the UAE. Its South African exchange is expected to go live at the end of August.<\/p>\n
Real-world asset tokenisation will be one of its focus areas. The group is already exploring similar models involving padel clubs, boutique hotels and safari lodges.<\/p>\n
Sports clubs could also use tokens to identify and engage directly with supporters, offering benefits such as ticket discounts, access to players, signed merchandise or voting rights on selected club decisions.<\/p>\n
Listen\/read:
Will stablecoins one day rule the world?
Can tokenisation spark an economic revival in SA?
Stablecoins are just the start of something huge in finance<\/p>\n
After the initial AVT issue, its price will be determined by buyers and sellers on the exchange. That brings liquidity to an otherwise difficult-to-trade asset, but also introduces price risk.<\/p>\n
\u201cIf the wine sales are going up, perhaps the token increases in value,\u201d says Diuga. \u201cBut we\u2019re not here to speculate on token appreciation.\u201d<\/p>\n
The proposition is ultimately about more than financial return, he adds.<\/p>\n
\u201cPeople want to go on a journey. They want to be able to go to the farm and see what they own, taste it and get discounts for doing it.\u201d<\/p>\n
And, yes, says Diuga, the wine really does taste better when you own a piece of the vineyard.<\/p>\n
For previous Moneyweb Crypto Pod episodes,\u00a0click\u00a0here.<\/p>\n
You can also sign up for our\u00a0crypto newsletter.<\/p>\n
#wine #taste #piece #vineyard<\/p>\n","protected":false},"excerpt":{"rendered":"
You can also listen to this podcast on iono.fm here. Owning an interest in a…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[2949,4905,18361,4104],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/12471"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12471"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/12471\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}