...
OpenVino focuses on wine, but OpenVino TokenzationTokenization, Transparency, and Traceability tools are exportable to spirits, olive oil, and other verticals.
...
When the wine is ready for consumption, token holders can redeem their tokens for bottles. During the redeem process, the buyer pays the shipping costs and their tokens are “burned”.
...
The OpenVino MTB18 launch - May 6, 2018
Transparency
Wineries can self-certify their wine production using OpenVino’s “BioDigital Certification”. Certifications can include multiple attestations:
...
The winery receives the customer’s personal information and wine valuation.
...
Why wine?
Wine is the IDEAL product for decentralized tokenization, transparency, and traceability. While many Real World Assets (RWA’s) are being tokenized today with web3 tools, wine has unique characteristics that match perfectly as a cryptoasset.
...
| Info |
|---|
By segregating the value of a wine into two components, the physical bottle, and a digital token, the cost impact of import tariffs and excise taxes can be ameliorated. |
The wine pricing problem
Wine producers face a unique challenge, in part because they are beholden to this three-tier supply-chain. Despite built-in scarcity, elasticity, and quality variability, wine producers lack mechanisms for dynamically adjusting their prices.
Once a wine producer provides a suggested retail price, it is very difficult for them to increase price, to accommodate scarcity and demand, nor can they readily slash prices on slow moving wines, or wines that are reaching the end of their drinkability.
Boutique wine shops complain that supermarket chains undercut prices below the cost distributors provide. Wine stock that has failed to sell quickly becomes unsellable, and wineries cannot dump product without using the grey-market, thus competing with their existing channel. And the few wineries that do sell DTC, cannot be seen as competing with their retailers. For this reason, buying wine directly from the winery is rarely a good deal for the consumer.
| Info |
|---|
With dynamic tokenized pricing, wineries no longer have to “enforce” suggested retail pricing (SRP) upon their supply chain. |
...
| Info |
|---|
“You Drink It, You Own It” provides the status wine drinking conveys, both by documenting their drinking experience with an NFT, and by connecting drinkers to wine makers in the OpenVinoDAO community. BioDigital Certification assures consumers of the authenticity of their purchases. |
What problems OpenVino solves, and who are our
...
customers.
OpenVino provides value to everyone in the wine ecosystem. This section enumerates OpenVino’s benefits for:
customers (wine drinkers)
supply-chain partners (importers, distributors, wine shops and restaurants, influences, brand ambassadors, wine regulators)
wine producers
wine partners (winery service providers)
the cryptosphere: token speculators, RWA funds, web3 protocols
For the winery
Access a broader market
Even people in Iran can buy wine tokens.
Early access to liquidity (“Liquidity from Liquid”)
Wineries harvest and crush grapes, and ferment grape juice (must). But the resulting wine needs time before it is ready to drink. The amount of time between ferment and drinkability varies greatly from one wine to the next. Some wines are ready to drink in just a few months, others require years of aging.
OpenVino tokenization provides wineries with the ability to capture revenue only days after fermentation.
The export Chicken-and-egg problem
Most wine importers do not choose which wines they import based on price or quality. They choose wines that they know will sell. This is the chicken-and-egg problem for wine producers. Creating space in a new market is a very expensive and time consuming proposition.
By tokenizing wines, producers can promote wine token sales in markets where they do not currently have an importer. Convincing an importer to bring wines into the country where token holders exist is a much easier ask.
Access to price volatility
Because wine has built-in scarcity, and for better or worse, evolves over time, wineries need a mechanism to quickly adjust prices. Unfortunately, this tool is not readily available with the current wine supply-chain.
Tokenization insures that wines that are underperforming in the marketplace can drop in price, and scarcer, in demand bottles, increase.
Import / Excise tax reduction
A significant percentage of the price of imported wines is directly correlated to import and excise taxes. By setting a low initial price during the Vintage Coin Offering (VCO) and utilizing this price, with adjustments for inflation, as the base price for export, these taxes can be reduced significantly.
Wineries today often resort to illegal dual-invoicing schemes to reduce their tax burden. OpenVino tokenization solves this problem by segregating the value of the physical bottle from the digital token.
Eliminate certification costs (BioDigitalCert)
Today’s certification process is expensive, and certification does not improve the taste of the wine. BioDigital Certification removes the certification expense.
Connect with real customers - validate quality
Wineries do not know who their customers are and what they think of their product. “You Drink It, You Own It” connects wine makers with wine drinkers.
Token backed loans
Wine tokens are real-world assets (RWA’s). Wineries can stake these tokens on decentralized P2P lending platforms and receive loans agains their tokenized collateral.
...
Costaflores Organic Vineyard used 1300 MTB20 wine tokens as collateral for a $6406 loan (DAI) to buy 10 truckloads of goat guano and supplies to build a chicken-coop.
| Info |
|---|
Do you know why Why do chicken coops only have 2 doors? |
For the supply-chain
Risk reduction
Forwarder - Access to new customer base
Imprinting customers as new crypto users
Ability to pay brand ambassadors / influencers / markets in wine tokens
Regulatory friction reduction
Fraud reduction
For the consumer
Price authenticity
Belonging to the community
First NFT and DAO tokens, risk-free entry into crypto
Attestation authenticity
Gifting, prizes
Liquidity farming and P2P lending
For wine partners
Onboarding services
Integration services
Certification services
Wine analytics and AI. This is OpenVino can help the world make better wines.
(such as, but certainly not limited to: Verivin, db.wine)Access to OpenVinoDAO community
The cryptosphere
Tokenization of a RWA asset class
Less problematic than other RWA’s - it is based on a utility token.
Participation in RWA stable coins
Tokenized carbon credits
The OpenVino Business Model
Wineries can use OpenVino Tokenization, Traceability and Transparency for free!
The only requirement for wineries is that they become members of OpenVinoDAO. For the first ~300 wineries, OpenVinoDAO subsidizes the cost of joining (nominally equivalent to $2,500 USD).
So how does OpenVino make money and generate value for investors and other OpenVinoDAO members?
The three primary vectors of value generation for OpenVino are:
Direct Revenue
OpenVinoDAO inflationary token
Composable wine data
Direct Revenue
OpenVino generates revenue from two primary sources: token swaps, and YDIYOI data fees.
All revenue generated is received in an OpenVinoDAO Revenue Wallet. Periodically the contents of the revenue wallet are disbursed to OpenVinoDAO token holder wallets. The automatic disbursement schedule is adjustable, daily / weekly / monthly.
...
Breakout target
...
3 years
...
Total Wineries in the world
...
64,255
...
Critical Mass for Network Effect
...
300
...
Max Market Penetration %
...
4.00%
...
OpenVino Wineries in 10 years
...
2570
...
Wine Labels per year
...
3
...
Label and certification registration fees
...
$0
...
Total annual label registration
...
$0
...
Bottles per label per year (tokens)
...
20,000
...
Average token price
...
$15
Token Swaps
Whenever someone purchases or sells a wine token issued on OpenVino.Exchange, a transaction fee (swap fee) equal to 1% of the value of the token is levied.
This swap fee is divided into two payments:
50% of the swap fee is paid to the token liquidity provider(s). Initially the winery issuing the token is the liquidity pool provider, but anyone holding wine tokens can participate in the liquidity pool, including OpenVinoDAO.
50% of the swap fee is paid to the OpenVinoDAO revenue wallet.
Essentialy, the more token swaps occur, and the higher the price of the tokens, the more revenue that is generated for OpenVinoDAO.
...
Here is an example of swap fee volume projections:
...
Year
...
Wineries
...
Swap Fee
...
1
...
10
...
67,500 $
...
2
...
100
...
675,000 $
...
3
...
300
...
2,025,000 $
...
4
...
624
...
4,214,121 $
...
5
...
949
...
6,403,243 $
...
6
...
1273
...
8,592,364 $
...
7
...
1597
...
10,781,486 $
...
8
...
1922
...
12,970,607 $
...
9
...
2246
...
15,159,729 $
...
10
...
2570
...
17,348,850 $
...
10 Year Total
...
78,237,900 $
“You Drink It, You Own It” (YDIYOI) NFT data fee
As a wine producer, how much would you pay to receive a photograph of your customer drinking your wine, their personal information, and answers to five questions about their drinking experience?
Wineries that use “You Drink It, You Own It” to capture their customer’s drinking feedback and personal information, pay a data fee for each successful NFT minting experience. This fee is an adjustable rate, and represents information of real value for wine producers.
In exchange for their feedback, photo, and personal data, customers receive a free NFT of their drinking experience and OpenVinoDAO tokens.
Not only do customers provide real, personal feedback, they become part of the winemaker’s community and members of OpenVinoDAO: You Drink It, You Own It!
...
1
...
2
...
3
...
4
...
5
...
6
...
7
...
8
...
9
...
10
...
Total Wineries
...
10
...
100
...
300
...
624
...
949
...
1,273
...
1,597
...
1,922
...
2,246
...
2,570
...
YDIYOI usage ratio
...
1%
...
1%
...
2%
...
2%
...
3%
...
4%
...
5%
...
6%
...
7%
...
10%
...
% wineries YDIYOI
...
30%
...
40%
...
40%
...
40%
...
50%
...
60%
...
60%
...
70%
...
80%
...
100%
...
YDIYOI NFT’s minted
...
1,800
...
24,000
...
153,600
...
299,671
...
853,766
...
1,833,038
...
2,875,063
...
4,842,360
...
7,546,176
...
15,421,200
...
YDIYOI OpenVinoDAO tokens granted per year
...
18,000
...
240,000
...
1,536,000
...
2,996,709
...
8,537,657
...
18,330,377
...
28,750,629
...
48,423,600
...
75,461,760
...
154,212,000
The YDIYOI usage ratio per year reflects the percentage of wine drinkers that scan the QR code on the bottle and mint the “You Drink It, You Own It” NFT. Initially, this number is low (1%), as most wine drinkers do not read the back label of the bottle. As more consumers become aware of the benefits of minting a YDIYOI token, and receiving an effective REBATE with their wine purchase, this percentage will increase.
Not all wineries will implement YDIYOI. We expect the percentage of wineries using YDIYOI to increase as the value and advantages that comes from crossing real-world pricing data from tokenization, with real-world consumer feedback.
Using these variables, these are the projected revenues from the NFT data fee @ %0.25
...
Year
...
Wineries
...
YDIYOI fee
...
1
...
10
...
$450
...
2
...
100
...
$6,000
...
3
...
300
...
$38,400
...
4
...
624
...
$74,918
...
5
...
949
...
$213,441
...
6
...
1273
...
$458,259
...
7
...
1597
...
$718,766
...
8
...
1922
...
$1,210,590
...
9
...
2246
...
$1,886,544
...
10
...
2570
...
$3,855,300
...
10 Year Total
...
8,462,668 $
Secondary Revenue sources
OpenVInoDAO token liquidity farming
Given the estimated volume of OpenVinoDAO token swaps, this will represent a considerable amount of revenue from liquidity farming, both for the liquidity providers (Wineries, Investor pool, and OpenVino DevOps wallet), as well as directly paying into the OpenVinoDAO revenue wallet.
BioDigital Certification Yield
When wineries complete BioDigital Certification, they must stake a bounty (equivalent of 5,000 USDC) during the 30-day challenge stage. OpenVinoDAO can leverage these funds during the bounty period by staking with external lending protocols.
Inflationary OpenVinoDAO token
100,000,000 OpenVinoDAO tokens are initially minted with a nominal value of $0.10.
Here is why the OpenVinoDAO token is inflationary and will increase in value:
...
When “You Drink It, You Own It” consumers register their drinking experience and provide their photo, feedback, and personal information, they receive OpenVinoDAO tokens. The wineries who receive this information from their customers must purchase these tokens from the OpenVinoDAO liquidity pool.
So, as new wineries join OpenVinoDAO, to take advantage of the free tokenization, transparency and traceability services, and more consumers scan their bottles to join OpenVinoDAO, the price of the OpenVinoDAO token will increase.
| Info |
|---|
The inflationary valuation of the OpenVinoDAO token does not include potential token speculators. But because the token price increases, because of the demand of OpenVino services and customer engagement, this will surely attract external token speculators. |
Of course, the number of OpenVinoDAO tokens awarded to consumers, the number of OpenVinoDAO tokens that wineries must stake in the liquidity pool to use OpenVino services, and even the total number of OpenVinoDAO tokens are variables that can be revisited by DAO governance, after the initial 3-year breakout period. Given the current model, an 8:1 token “split” would likely be required to accommodate token demand after year 5.
...
OpenVinoDAO token swaps for USDC
...
9,000
...
120,000
...
768,000
...
13,148,354
...
6,268,829
...
11,765,189
...
17,975,314
...
29,011,800
...
44,330,880
...
86,106,000
...
YDIYOI OpenVinoDAO tokens sold per year
...
50.00%
...
9,000
...
120,000
...
768,000
...
1,498,354
...
4,268,829
...
9,165,189
...
14,375,314
...
24,211,800
...
37,730,880
...
77,106,000
...
Founder tokens sold per year
...
0
...
0
...
0
...
700,000
...
1,000,000
...
1,300,000
...
1,800,000
...
2,400,000
...
3,300,000
...
4,500,000
...
Partner token sales
...
0
...
0
...
0
...
10,250,000
...
0
...
0
...
0
...
0
...
0
...
0
...
Investor tokens sales
...
0
...
0
...
0
...
700,000
...
1,000,000
...
1,300,000
...
1,800,000
...
2,400,000
...
3,300,000
...
4,500,000
...
Total Attractor wallet tokens
...
25,000,000
...
24,498,200
...
19,474,200
...
4,320,600
...
4,320,600
...
4,320,600
...
4,320,600
...
4,320,600
...
4,320,600
...
4,320,600
...
4,320,600
...
Attractor tokens granted to wineries
...
25000
...
250,000
...
2,500,000
...
7,500,000
...
0
...
0
...
0
...
0
...
0
...
0
...
0
...
Attractor tokens granted to partners
...
25000
...
250,000
...
2,500,000
...
7,500,000
...
0
...
0
...
0
...
0
...
0
...
0
...
0
...
Attractor tokens granted to YDIYOI
...
10
...
1,800
...
24,000
...
153,600
...
0
...
0
...
0
...
0
...
0
...
0
...
0
...
-9,000
...
-120,000
...
-768,000
...
-2,043,789
...
10,376,686
...
14,673,046
...
18,883,171
...
27,519,657
...
39,238,737
...
76,213,857
...
USDC swaps for OpenVinoDAO tokens
...
0
...
0
...
0
...
11,104,566
...
16,645,514
...
26,438,234
...
36,858,486
...
56,531,457
...
83,569,617
...
162,319,857
For YDIYOI (by wineries)
...
2,996,709
...
8,537,657
...
18,330,377
...
28,750,629
...
48,423,600
...
75,461,760
...
154,212,000
...
For new wineries
...
25000
...
8,107,857
...
8,107,857
...
8,107,857
...
8,107,857
...
8,107,857
...
8,107,857
...
8,107,857
Composable wine data
What is the value to the wine industry, to know in real-time:
The changing price of a bottle of wine, (Tokenization) cross-referenced with real customer feedback (Traceability), and winery and vineyard specific practices (Transparency)?
The ability for a winery to validate in real-time new marketing strategies is unprecedented.
Now consider the composite value of pricing from millions of wine tokens, customer feedback, and wine making and marketing practices.
Undoubtably, THIS will become the largest value proposition of OpenVino. But because it is difficult to quantify this value today, this economic metric has not been calculated into the OpenVino business proposition.
With OpenVino and AI, we will finally be able to answer the question, “How can I produce a $100 bottle of wine.”
Regardless of whether or not OpenVino, or a third-party monetizes this composable data, the ability to answer the question, “How do your wine sales rank with your competitors?” is monumental. Any increase in wine value for OpenVino wineries and partners will positively impact OpenVino revenue and desirability. Even providing OpenVinoDAO members this information for free produces a win-win outcome.
Attracting and onboarding customers
Currently, there are wineries waiting to be onboarded for OpenVino services. The current plan is to onboard 10 of these wineries in one batch, followed by 100 wineries 12 months later, with the goal to reach 300 wineries in three years. This gradual approach will help insure that all of the initial wineries are successful in their implementation of OpenVino, and can serve as beacons for other wineries, combined with a concerted marketing and communications push.
Leveraging winery marketing budgets
OpenVino empowers wineries with new sales and marketing tools. As such, OpenVino takes advantage of the individual winery’s marketing efforts around tokenization, transparency, and traceability. Also, wine drinkers engaging with “You Drink It, You Own It” become natural brand ambassadors.
The main marketing and communications efforts of OpenVino are focused on onboarding the first 300 wineries to reach network effect.
Reaching the network effect
To reach the network effect where wineries will have already heard about OpenVino, without proactive marketing, and be able to onboard without assistance, two things need to happen:
...
Reach a critical mass of wineries.
We estimate that we need upwards of 300 onboarded wineries, worldwide, to guarantee enough exposure to create FOMO for other wineries.
...
The OpenVino onboarding process.
Tokenization
Wineries select a wine vintage, based on existing bottle stocks or newly fermented wine and define their tokenomics and branding:
VCO start / end dates, and initial price
Token name, image, supply
Redeem start / end dates
Winery branding - images and text
Tokenization is a simple process. Having said that, the complexity of implementing web3 tokenization in existing businesses is not technical, but operational. Wineries need to understand questions such as:
How do we invoice token sales?
How is sales tax applied?
How should we account for tokens as assets on our books?
What liability do we have with customers in case we are unable to deliver wines?
How do liquidity pools work, what is the economic impact and advantage of a decentralized trading market?
How do we value our wines for export?
This is where 20+ years of expertise in the wine industry from the OpenVino team is crucial. For early adopter wineries, a hands-on approach in educating winery management will be necessary. As OpenVino expands to more wineries, examples generated from this know-how will be easily replicated, eventually resulting in an automated on-boarding process.
The delivery of this know-how, long-term support and hand holding, can easily be delivered by OpenVino partners.
For OpenVino, Winery and token onboarding involves
minting new tokens,
creating redeem and revenue wallets (non-custodial, owned by the winery)
Registering tokens on etherscan, and other registry platforms
Provisioning on the OpenVino winery dashboard (ferment.openvino.org)
Providing operational training and support to early adopters.
Transparency
BioDigital Certification requires that wineries provide information substantiating their certification claims (i.e. organic, DOC/AOC, carbon neutral, vegan, etc.).
Wineries can add IoT sensors (Vinduino, weather station) and 360˚ image capture. For this wineries need to purchase sensor and camera hardware (COTS) and a deploy the equivalent of a Netrabrick relayer node.
Despite the straightforward approach BioDigital Certification provides, many wineries will still need assistance achieving their certification status. This is a role for OpenVino partners. Existing certification companies can find a home, providing these services, as OpenVinoDAO members.
Traceability
Wineries employing “You Drink It, You Own It” traceability simply need to download and print the NFT QR codes produced by OpenVino, or buy QR stickers from an OpenVino partner. Data collected from YDIYOI drinkers is accessible on the OpenVino dashboard (ferment.openvino.org)
How OpenVino attracts users
OpenVino will proactively search out the initial ~300 wineries required for Network Effect engagement. Some of the actions planned for this attractor campaign include:
Activating wine influencers (i.e. Amanda Barnes, Wine Folly)
Participating in major wine events (VinExpo, ProWine, London Wine Fair)
Participating in major crypto events (EthCC, EthDenver, Aleph)
Viral marketing campaigns, such as collective “Beta Tasting” events
Winedrops
For the most part, attracting token buyers and YDIYOI users (wine drinkers) is the responsibility of OpenVino wineries.
The OpenVinoDAO Governance model
An introduction to OpenVinoDAO
(insert animation)
The fund-raising process
Calendar
August 31 to December 31st.
private commitment white-list
First come, first serve
Value add from the investor
Shared vision
minimal success barrier
who is invited
investors that understand wine and/or the opportunities of web3 universe.
friends and family
investors who are comfortable with the model, committed to reaching the network effect breakout - exhausting the 25% promo wallet.
passive Investors, and those who are willing to contribute
liaising with wineries
helping overcome the scalability challenges
The founders commitment
No token sales until network effect has been achieved. This is our success criteria.
onboarding wineries
adding partners
YDIYOI consumers
Achieving “autonomos” and “decentralized” in DAO as quickly as possible after the network effect is achieved (time limit? formula)
Compensating those who have helped OpenVino along the way.
Winedrop! not Airdrop
OpenVinoDAO!
Token issuance
Incentives for all
Dividends and Shares
Comparison with traditional governance and growth structures
Global presence with reduced friction
The Devil is in the details
OpenVinoDAO mission statement
Governance model
Tokenomics
Technology Stack
Roadmap and Timeline
The community Moat
Legal, Compliance and Accounting
The Crecimiento RWA manifesto
Scaling OpenVino into a global service, 1M users and beyond
The time is now!
How did we get here, and where are we going.
This section provides a brief history of the development of OpenVino, and explains now is the time to scale.
OpenVino was officially launched on May 6, 2018, with the tokenization of MTB18, the world’s first wine-backed crypto-asset. In 2024, our seventh vintage token, MTB24, was released, along with “You Drink It, You Own It” NFT drinker experience minting.
A brief history of OpenVino
Why now is the time to scale
2024: The year to scale…and why before was too-early.
...
Partner projects
4m3.bio - ecosystem
Verivin
...
Enabling 100,000+ people to tell the OpenVino story - what is the incentive
sell more wine
increase the value of wine, and OpenVinoDAO tokens
...
What do we need to scale?
For OpenVino to become the global flag bearer for tokenization, traceability, and transparency in the wine universe, five areas need to be addresses, five attack vectors opened:
Make buying, selling, and redeeming wine tokens super easy, and fun. (The UX problem)
Easy to use for people that don’t have metamask.
The fiat on-ramp/off-ramp
ferment - the winery dashboard
Tell the world about OpenVino
Attracting wineries and partners
Getting wineries to tell the OpenVino story for us (proxy-marketing)
Fill the moat - build the community that insures growth through the network effect
Building OpenVinoDAOAlways-on (Resilience)
Security
What needs to be done to insure that the OpenVino components are secure?Do you have all actors, roles, and privileges documented?
Do you keep documentation of all the external services, contracts, and oracles you rely on?
Do you have a written and tested incident response plan?
Do you document the best ways to attack your system?
Do you perform identity verification and background checks on all employees?
Do you have a team member with security defined in their role?
Do you require hardware security keys for production systems?
Does your key management system require multiple humans and physical steps?
Do you define key invariants for your system and test them on every commit?
Do you use the best automated tools to discover security issues in your code?
Do you undergo external audits and maintain a vulnerability disclosure or bug bounty program?
Have you considered and mitigated avenues for abusing users of your system?
Availability
Recoverability
Autonomous (the importance of self-running)
A Self-Driving OpenVino
Automate Provisioning
Partner network and a robust community
Who are we up against? The competitive landscape
...
A wine distributor or retailer who purchases large volumes of tokens at an attractive price, can choose to redeem small amounts at a time, maintaining the option to liquidate the tokens if the wine is not selling as expected, or if the token price increases beyond the threshold they consider acceptable.
Fulfillment - Access to new customer base
A wine importer that works with OpenVino wineries can choose to be act only as a forwarder, fulfilling orders from token holders, without being part of the sales cycle. But the importer still gains access to the delivery customer data.
Imprinting customers as new crypto users
People remember when they buy their first crypto-currency. Wineries that onboard new crypto users imprint their brand on this memory.
Ability to pay brand ambassadors / influencers / markets in wine tokens
Marketers promise the moon to their customers, but are rarely held accountable for moving the needle in sales. By paying marketers in the assets they are meant to be selling, their success or failure is immediately compensated.
Regulatory friction reduction
Wine regulators are not meant to financially burden wineries. BioDigital Certification allows wineries to self-certify their productions by reducing cumbersome bureaucracy.
Fraud reduction
The wine industry if fraught with fraud. BioDigital Certification reduces fraud.
For the consumer
Price authenticity
The OpenVino.exchange decentralized marketplace provides consumers with a “real” price for wines, as determined by supply and demand.
Belonging to the community
“You Drink It, You Own It” brings together validated wine drinkers with wine producers in a token-gated community.
First NFT, wine and DAO tokens: a risk-free entry into crypto
Consumers are less averse to buying volatile crypto currencies, experimenting with NFT’s and DAO’s, if they know that, at the end of the day, they can always “drink” their investment.
Attestation authenticity
Is this wine really organic/vegan/carbon neutral? BioDigital Certification provides the proof.
Gifting, prizes
Gifting a bottle of wine is never easier than sending someone a token.
Liquidity farming and P2P lending
OpenVino gives people the chance to learn about “liquidity farming” with a REAL farm.
For OpenVino partners
Onboarding services
OpenVino partners can deliver training and onboarding services to wineries, and keep %100 of the fees for their services. Partners decide their fees based on what pricepoint their market will support.
For every winery a partner brings onto OpenVino, they receive OpenVinoDAO tokens worth ~$2,500.
Integration services
Wineries that implement OpenVino will want to integrate their ERP and CRM systems. This is revenue for OpenVino partners.
Certification services
Even though wineries can self-certify their wines, for free, with BioDigital Certification, they may still need consulting services to help insure that they are in compliance.
Wine analytics and AI. This is how OpenVino can help the world make better wines.
Combining wine token pricing, with BioDigital Certification data, and You Drink It, You Own It consumer feedback opens limitless opportunities for wine analytics and AI.
Imagine joining spectrographic data to wine tokens with partners like VeriVin or db.wine, or even Vivino.
Access to OpenVinoDAO community
OpenVinoDAO brings together wine producers, drinkers, and investors in a token gated community. As OpenVinoDAO members, OpenVino partners gain access to this community.
For the cryptosphere
OpenVino has the power to transform an industry that has existed since the dawn of civilization, and provide a desperately needed real-world use-case for web3.
Token speculation
Like any other asset class, if the value of a wine token tends to increase over time, speculators will buy them.
Tokenization of a Real-World Asset class
Wine tokens are “utility tokens” and thus present fewer legal obstacles than other RWA’s - it is based on a utility token.
Participation in stable coins
RWA assets are joining the basket of stable coin currencies.
Tokenized carbon credits
Wine tokens that are BioDigital Certified as “carbon-neutral” could be used within composable tokenized carbon credits.
The OpenVino Business Model
Wineries can use OpenVino Tokenization, Traceability and Transparency for free!
The only requirement for wineries is that they become members of OpenVinoDAO. For the first ~300 wineries, OpenVinoDAO subsidizes the cost of joining (nominally equivalent to $2,500 USD).
So how does OpenVino make money and generate value for investors and other OpenVinoDAO members?
The three primary vectors of value generation for OpenVino are:
Direct Revenue
OpenVinoDAO inflationary token
Composable wine data
Direct Revenue
OpenVino generates revenue from two primary sources: token swaps, and YDIYOI data fees.
All revenue generated is received in an OpenVinoDAO Revenue Wallet. Periodically the contents of the revenue wallet are disbursed to OpenVinoDAO token holder wallets. The automatic disbursement schedule is adjustable, daily / weekly / monthly.
Here is the full direct revenue model.
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Breakout target | 3 years |
Total Wineries in the world | 64,255 |
Critical Mass for Network Effect | 300 |
Max Market Penetration % | 4.00% |
OpenVino Wineries in 10 years | 2570 |
Wine Labels per year | 3 |
Label and certification registration fees | $0 |
Total annual label registration | $0 |
Bottles per label per year (tokens) | 20,000 |
Average token price | $15 |
Token Swaps
Whenever someone purchases or sells a wine token issued on OpenVino.Exchange, a transaction fee (swap fee) equal to 1% of the value of the token is levied.
This swap fee is divided into two payments:
50% of the swap fee is paid to the token liquidity provider(s). Initially the winery issuing the token is the liquidity pool provider, but anyone holding wine tokens can participate in the liquidity pool, including OpenVinoDAO.
50% of the swap fee is paid to the OpenVinoDAO revenue wallet.
Essentialy, the more token swaps occur, and the higher the price of the tokens, the more revenue that is generated for OpenVinoDAO.
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Though other decentralized exchanges (DEX) may offer competitive swap rates, ranging from 0.25% - 1%, wine tokens present small volume trades as compared with other crypto assets and are less desirable for generic DEX’s. But even If other DEX’s were to fund liquidity pools with more competitive rates that OpenVino.exchange, this would simply create arbitrage opportunities, and increase the amount of swap fee revenues generated. |
Here is an example of swap fee volume projections:
Year | Wineries | Swap Fee |
1 | 10 | 67,500 $ |
2 | 100 | 675,000 $ |
3 | 300 | 2,025,000 $ |
4 | 624 | 4,214,121 $ |
5 | 949 | 6,403,243 $ |
6 | 1273 | 8,592,364 $ |
7 | 1597 | 10,781,486 $ |
8 | 1922 | 12,970,607 $ |
9 | 2246 | 15,159,729 $ |
10 | 2570 | 17,348,850 $ |
10 Year Total | 78,237,900 $ |
“You Drink It, You Own It” (YDIYOI) NFT data fee
As a wine producer, how much would you pay to receive a photograph of your customer drinking your wine, their personal information, and answers to five questions about their drinking experience?
Wineries that use “You Drink It, You Own It” to capture their customer’s drinking feedback and personal information, pay a data fee for each successful NFT minting experience. This fee is an adjustable rate, and represents information of real value for wine producers.
In exchange for their feedback, photo, and personal data, customers receive a free NFT of their drinking experience and OpenVinoDAO tokens.
Not only do customers provide real, personal feedback, they become part of the winemaker’s community and members of OpenVinoDAO: You Drink It, You Own It!
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
Total Wineries | 10 | 100 | 300 | 624 | 949 | 1,273 | 1,597 | 1,922 | 2,246 | 2,570 |
YDIYOI usage ratio | 1% | 1% | 2% | 2% | 3% | 4% | 5% | 6% | 7% | 10% |
% wineries YDIYOI | 30% | 40% | 40% | 40% | 50% | 60% | 60% | 70% | 80% | 100% |
YDIYOI NFT’s minted | 1,800 | 24,000 | 153,600 | 299,671 | 853,766 | 1,833,038 | 2,875,063 | 4,842,360 | 7,546,176 | 15,421,200 |
YDIYOI OpenVinoDAO tokens granted per year | 18,000 | 240,000 | 1,536,000 | 2,996,709 | 8,537,657 | 18,330,377 | 28,750,629 | 48,423,600 | 75,461,760 | 154,212,000 |
The YDIYOI usage ratio per year reflects the percentage of wine drinkers that scan the QR code on the bottle and mint the “You Drink It, You Own It” NFT. Initially, this number is low (1%), as most wine drinkers do not read the back label of the bottle. As more consumers become aware of the benefits of minting a YDIYOI token, and receiving an effective REBATE with their wine purchase, this percentage will increase.
Not all wineries will implement YDIYOI. We expect the percentage of wineries using YDIYOI to increase as the value and advantages that comes from crossing real-world pricing data from tokenization, with real-world consumer feedback.
Using these variables, these are the projected revenues from the NFT data fee @ %0.25
Year | Wineries | YDIYOI fee |
1 | 10 | $450 |
2 | 100 | $6,000 |
3 | 300 | $38,400 |
4 | 624 | $74,918 |
5 | 949 | $213,441 |
6 | 1273 | $458,259 |
7 | 1597 | $718,766 |
8 | 1922 | $1,210,590 |
9 | 2246 | $1,886,544 |
10 | 2570 | $3,855,300 |
10 Year Total | 8,462,668 $ |
Secondary Revenue sources
OpenVInoDAO token liquidity farming
Given the estimated volume of OpenVinoDAO token swaps, this will represent a considerable amount of revenue from liquidity farming, both for the liquidity providers (Wineries, Investor pool, and OpenVino DevOps wallet), as well as directly paying into the OpenVinoDAO revenue wallet.
BioDigital Certification Yield
When wineries complete BioDigital Certification, they must stake a bounty (equivalent of 5,000 USDC) during the 30-day challenge stage. OpenVinoDAO can leverage these funds during the bounty period by staking with external lending protocols.
Inflationary OpenVinoDAO token
100,000,000 OpenVinoDAO tokens are initially minted with a nominal value of $0.10.
Here is why the OpenVinoDAO token is inflationary and will increase in value:
Wineries can use OpenVino Tokenization, Traceability, and Transparency services for free, but they must be members of OpenVinoDAO by holding 25,000 OpenVinoDAO tokens.
The first ~300 wineries to join OpenVinoDAO receive the 25,000 tokens for free from the OpenVinoDAO “Attractor wallet”. Any wineries that wish to use OpenVino after the ~300 breakout threshold must purchase and stake 25,000 OpenVinoDAO tokens from the OpenVinoDAO liquidity pool.When “You Drink It, You Own It” consumers register their drinking experience and provide their photo, feedback, and personal information, they receive OpenVinoDAO tokens. The wineries who receive this personal information from their customers must purchase these tokens from the OpenVinoDAO liquidity pool.
So, as new wineries join OpenVinoDAO, to take advantage of the free tokenization, transparency and traceability services, and more consumers scan their bottles to join OpenVinoDAO, the price of the OpenVinoDAO token will naturally increase.
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The inflationary valuation of the OpenVinoDAO token does not include potential token speculators. But as the token price increases, because of the demand of OpenVino services and customer engagement, this will surely attract external token speculators. |
(insert OpenVinoDAO token inflation projection)
Composable wine data
What is the value to the wine industry, to know in real-time:
The changing price of a bottle of wine, (Tokenization) cross-referenced with real customer feedback (Traceability), and winery and vineyard specific practices (Transparency)?
The ability for a winery to validate in real-time new marketing strategies is unprecedented.
Now consider the composite value of pricing from millions of wine tokens, customer feedback, and wine making and marketing practices.
Undoubtably, this will become an important value proposition of OpenVino. But because it is difficult to quantify this value today, this economic metric has not been calculated into the OpenVino business model.
With OpenVino and AI, we will finally be able to answer the question, “How can I produce a $100 bottle of wine.”
Regardless of whether or not OpenVino, or a third-party monetizes this composable data, the ability to answer the question, “How do your wine sales rank with your competitors?” is monumental. Any increase in wine value for OpenVino wineries and partners will positively impact OpenVino revenue and desirability. Even providing OpenVinoDAO members this information for free produces a win-win outcome.
Attracting and onboarding customers
Currently, there are wineries waiting to be onboarded for OpenVino services. The current plan is to onboard 10 of these wineries in one batch, followed by 100 wineries 12 months later, with the goal to reach 300 wineries in three years. This gradual approach will help insure that all of the initial wineries are successful in their implementation of OpenVino, and can serve as beacons for other wineries, combined with a concerted marketing and communications push.
Leveraging winery marketing budgets
OpenVino empowers wineries with new sales and marketing tools. As such, OpenVino takes advantage of the individual winery’s marketing efforts around tokenization, transparency, and traceability. Also, wine drinkers engaging with “You Drink It, You Own It” become natural brand ambassadors.
The main marketing and communications efforts of OpenVino are focused on onboarding the first 300 wineries to reach network effect.
Reaching the network effect
To reach the network effect where wineries will have already heard about OpenVino, two things need to happen:
Reach a critical mass of wineries.
We estimate 300 onboarded wineries, worldwide, to guarantee enough exposure to create FOMO for other wineries.Automate the onboarding experience.
Currently, given the lack of knowledge surrounding web3 tools, needed improvements in the OpenVino UI/UX, and the absence of engaged winery examples to draw from, the onboarding process requires a hands-on approach.
In addition to improving the OpenVino UI/UX, and listing the initial 10 reference wineries, the onboarding process for the 10-100 wineries will be done through a distributed partner network. Individuals and small businesses in different wine regions of the world (i.e. USA, Germany, Spain, Portugal, Chile, Mexcio) have already expressed interest in onboarding local wineries to OpenVino.
OpenVinoDAO will provide these partners with materials to educate and onboard these wineries. In exchange for engaging with these wineries, OpenVinoDAO partners will receive OpenVinoDAO tokens.
The OpenVino onboarding process.
Tokenization
Wineries select a wine vintage, based on existing bottle stocks or newly fermented wine, and define their tokenomics and branding:
Vintage Coin Offering (VCO) start / end dates, and initial price
Token name, image, token supply
Redeem start / end dates
Winery branding - images and text
Tokenization is a simple process. Having said that, the complexity of implementing web3 tokenization in existing businesses is not technical, but operational. Wineries today ask these questions:
How do we invoice token sales?
How is sales tax applied?
How should we account for tokens as assets on our books?
What liability do we have with customers in case we are unable to deliver wines?
How do liquidity pools work, what is the economic impact and advantage of a decentralized trading market?
How do we value our wines for export?
What is the legality of wine tokenization?
This is where 20+ years of expertise in the wine industry from the OpenVino team is crucial. For early adopter wineries, a hands-on approach in educating winery management will be necessary. As OpenVino expands to more wineries, examples generated from this know-how will be replicated, eventually resulting in an automated on-boarding process.
The delivery of this know-how, long-term support and hand holding, can be delivered by OpenVino partners.
For OpenVino, winery onboarding involves:
minting new tokens
creating redeem and revenue wallets (non-custodial, owned by the winery)
Registering tokens on etherscan, and other registry platforms
Provisioning on the OpenVino winery dashboard (ferment.openvino.org)
Providing operational training and support to early adopters.
Transparency
BioDigital Certification requires that wineries provide information substantiating their certification claims (i.e. organic, DOC/AOC, carbon neutral, vegan, etc.).
Wineries can add IoT sensors (Vinduino, weather station) and 360˚ image capture. For this, wineries need to purchase sensor and camera hardware (COTS) and a deploy the equivalent of a Netrabrick relayer node.
Despite the straightforward approach BioDigital Certification provides, many wineries will still need assistance achieving their certification status. This is a role for OpenVino partners. Existing certification companies can find a home, providing these services, as OpenVinoDAO members.
Traceability
Wineries employing “You Drink It, You Own It” traceability simply need to download and print the NFT QR codes produced by OpenVino, or buy QR stickers from an OpenVino partner. Data collected from YDIYOI drinkers is accessible on the OpenVino dashboard (ferment.openvino.org)
How OpenVino attracts users
OpenVino will proactively search out the initial ~300 wineries required for Network Effect engagement. Some of the actions planned for this attractor campaign include:
Activating wine influencers (i.e. Amanda Barnes, Wine Folly)
Participating in major wine events (VinExpo, ProWine, London Wine Fair)
Participating in major crypto events (EthCC, EthDenver, Aleph)
Viral marketing campaigns, such as collective “Beta Tasting” events
Winedrops
For the most part, attracting token buyers and YDIYOI users (wine drinkers) is the responsibility of OpenVino wineries.
The OpenVinoDAO Governance model
OpenVinoDAO brings together wine producers, drinkers, and investors in a token-gated community. As OpenVinoDAO members, OpenVino partners gain access to OpenVino’s tools and the community.
https://youtu.be/LnIALGnXYv4?si=l3nztXNytpGXXQAj
Scaling OpenVino into a global service, 1M users and beyond
OpenVino was officially launched on May 6, 2018, with the tokenization of MTB18, the world’s first wine-backed crypto-asset. In 2024, our seventh vintage token, MTB24, was released, along with “You Drink It, You Own It” NFT drinker experience minting.
In 2024, web3 tools have matured sufficiently to provide value to the very traditional wine industry. Our years of effort validating the OpenVino business model, both with Costaflores and wineries worldwide suggests that now is the time to scale, and maintain first-mover advantage.
What does OpenVino need to scale?
For OpenVino to become the global flag bearer for tokenization, traceability, and transparency in the wine universe, five attack vectors need to be addressed:
Make it easy and fun for non-crypto people to use, and make it pretty (The UX problem)
This involves, hiring a good designer, enabling a fiat on-ramp/off-ramp, activating account abstraction, and improving ferment.openvino.org - the winery dashboardTell the world about OpenVino
Attracting wineries and partners through a comprehensive, metrics-based, marketing push.Fill the moat - build the community that insures growth through the network effect
Deploy OpenVinoDAO and collaboration tools like telegram, discord, or commonwealth.imEnsuring OpenVino is Always-on and Secure
Work with web3 security professionals to go beyond The Rekt Test.Availability and Recoverability
Decentralize OpenVino web2 components across OpenVino Netrabrick nodes deployed at wineries.Autonomous (the importance of self-running)
Insure OpenVino is a “Self-Driving” platform with automated provisioning and a robust partner network and community.
Who are we up against? The competitive landscape
Several web3 projects exist in the wine world. But to date, these are all focused on collectible NFT’s and wine clubs, or traceability.
Penfolds, This renowned Australian winery has used blockchain to authenticate their wines. Penfolds has collaborated with BlockBar, an NFT marketplace for luxury wines and spirits, to release limited edition wines with blockchain-backed provenance
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Traceability
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Château Pape Clément, One of the oldest Grand Cru Classé wineries in Bordeaux, France, Château Pape Clément has integrated blockchain technology to provide detailed traceability of their wine bottles. Each bottle comes with a unique, tamper-proof NFC tag that links to a blockchain record.
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How we validate Openvino?
Starting with this experience:
Six years of work and honing on a working winery (who understands the pain points of selling wine!)
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DeMorgenzon : A South African winery, DeMorgenzon, has used blockchain technology to enhance transparency and traceability in their wine production process.
Ariousios :A Greek winery that uses blockchain technology to ensure the authenticity and traceability of their wines, providing customers with detailed information about the wine's origin and production.
Medici Ermete, This Italian winery, known for its Lambrusco, has implemented blockchain to trace their wine production and ensure the authenticity of their products.
Australian Vintage Limited (AVL), AVL has partnered with VeChain, a blockchain platform, to integrate blockchain technology into their supply chain for better traceability and transparency.
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Library wine marketplaces
Club dVin is a decentralized wine club, and represents one of the more advanced web3 wine projects.
None of these projects provide full-vintage tokenization, nor do they integrate extreme transparency with traceability. OpenVino enjoys a first-mover advantage.
How have we validated OpenVino?
OpenVino development over the past six years involved tokenizing 100% of Costaflores Organic Vineyard’s production. We understand the friction and pain points of the wine industry.
We are uniquely positioned, with 20 years in the wine business, as an outsider. and 40 years in the IT business - industry: from web0 and the PC revolution, through the growth of the internet from web1-web3 - and the blockchain.
Yet, how can know that OpenVino has been vetted by others?
Let start with the number of times OpenVino has been presented in public (blockchain world / wine world)
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Next, we work with the wine think-tank Areni Global to connect with industry leaders.
Finally, we have worked through the School For Startups 10Q Methodology.