Certification Badges with Kleros KEY POINTS

BIO DIGITAL CERTIFICATION

BioDigital Certification™ is a process for producers to self-certify their product claims. 

Upon successful completion of BioDigital Certification, producers receive a digital badge for their claim. 

Wineries can use BioDigital Certification to certify wines and grape production for diverse claims, such as:

1. organic

2. biodynamic

3. vegan

4. DO, AOC, IG

5. fair-trade

6. carbon neutral

7. C2C

8. single-vineyard

9. natural

BioDigital Certification combines three elements:

• An unambiguous discrete description of the claim requirements (i.e. what are the rules and requirements for Organic wine certification)

• A list of digital artefacts that wineries publish on OpenVino to demonstrate compliance with these requirements

• A process for others to challenge the wineries BioDigital certification claim, using the Kleros.io decentralized arbitration service. 

This document describes in detail how BioDigital Certification works.

What is BioDigital Certification, and why do we need it?

1. Many, many claims by wineries

2. Too many green labels - not enough space

3. Confusing consumers with non-certified labels

What problems does BioDigitial Certification solve?

1. Mis-aligned incentives

2. Easy to cheat

3. Expensive

4. Ineffective

5. Time periods

6. Different standards for different destinations = $$

What Artefacts do wineries need to Certify?

1. Documents and analysis required and informed by the platform.

2. Time

Types of BioDigital Certifications:

1. Organic

2. Biodynamic

3. Vegan

4. DO, AOC, IG

5. Fair-trade

6. Carbon neutral

7. C2C

8. Single-vineyard

9. Natural?

BioDigital Certification Components

• Data Publication on OpenVino.Exchange

• Data Validation with Bloock

• Certification Badges with Kleros

• Challenge System with Kleros

USER RELATED TO THE PROJECT. Understanding the users and the pain.

What problem are you solving?
Organic certification process for the benefit of the market overall.

Who are the users?  

• Organic Wine Producers (WINERIES)

• Wine Influencers

1. Wine Buyers (here we must make a difference between regular consumers and distributors/resellers)

2. Certifiers

3. Regulators

4. Main conclusions on interviews

Most common problems mentioned by the different users:

Problems to mention to each user for ranking:

• Winery: 

  • Expensive as certification

  • Easy to cheat by competence

Affects the price of the wine

• Buyers:

  • More expensive than non-certified wines

  • Hard to find

  • Not sure if authentically organic?

• Influencers:

  • Hard to trust a promoted certifier

  • Not so known field

  • Hard to combine both niches

• Regulators and Certifiers

  • RRHH

  • False documents

HOW DOES BIODIGITAL CERTIFICATION WORK?

The Winery, to claim a BioDigital certification badge (in this case: Organic), will need to go to OpenVino platform, where three buttons will appear, en reference to:

Example: After the Winery carefully and diligently reads the organic certification requirements and uploads its self certification through OpenVino:

• The winery stakes a bounty with for 30 days, which challengers can try to claim. (for example = equivalent value of 1 ETH)

• Challengers must stake a certain amount of funds and present evidence. (for example: 0.3 ETH)

• The Kleros jury looks at the winery artefacts and the challengers evidence and decides who is right. 

  • If nobody challenges the winery within 30 days, the bounty is returned and the winery receives the organic badge.

  • If challenges are presented, and the Kleros jury votes in favor of the winery, the winery bounty is returned and 1/3 of the challenger staking is rewarded to the winery, 1/3 is rewarded to Kleros, and 1/3 is rewarded to OpenVino.

  • If the Kleros jury votes in favor of the challenger, the winery bounty is awarded to the challenger, and 1/3 of the challenger staking is returned to the challenger, 1/3 is rewarded to Kleros, and 1/3 to OpenVino.

CHALLENGERS

Currently, we are working with Kleros on a one challenger per period basis, but developing the possibility of several challengers to stake and present evidence at the same time.

In this case if at least ONE challenger wins with the Kleros jury, then the winery bounty is paid out, proportionally to all of the winning challengers. 

In other words, if there are 6 challengers, the bounty would be paid out 6 ways. The challenger staking would be returned to each challenger as before (1/3 x 3)

Multiple challenges = multiple revenue generated for Kleros and OpenVino.

Until the end of the probation month, the amount and identity of the challengers + their evidence will not be disclosed to avoid malicious attacks and abuse of the platform. At the same time the challengers will NOT want to leak information about their challenge evidence as it would be disadvantageous for the first challenger to have additional challengers pile on (the bounty will be diluted, thus reducing trolling).

At the same time, if there are too many challengers, the potential diluted bounty claim will be less than the 2/3 loss of the challenger staking, eliminating the desire to have too many challengers.

ETH AND WINE TOKEN COMBINATION

Why would allowing wine tokens + ETH pairs as winery bounty be benefitial?

1. This token pair can easily be added to the OpenVino token liquidity pool, but during the 30 day staking period, this liquidity pool is owned by OpenVino - so this generates commission revenues from token sales during this period.

2. By staking a wineries own tokens, this reduces the financial cost for the winery, increase the desirability for wine tokenization, and places a winery in the position of staking their own token future on certification…understanding that a loss to a Kleros jury (because the winery is cheating) will probably result in a drop in the token valuation.