🤝How does it work?
Cask to Token - What is it and how does it work?
Last updated
Cask to Token - What is it and how does it work?
Last updated
How do we invest in and tokenize wine & spirits?
Through the sale of CASK tokens, we raise our CellarDAO investment funds. CASK tokens are ERC-20 tokens on the Polygon blockchain. They are available for sale at Cellardao.io and can be bought for MATIC for now. More info on our token page.
Our team sources investment grade wines & spirits as close as possible to the producers and check authenticity & provenance.
These investment proposals are shared with CASK token holders who can then vote to decide which investments we want to make. The sourcing is also shared with our community. We offer community incentives of 10% of deal value (in CASK tokens) for anyone who brings us investment deals through their own network. This way we have a shared objective and reward mechanism with all the CASK token holders.
After the investment is done, we turn the (future or existing) wine & spirits bottles into NFTs (Non-Fungible Tokens = unique tokens). This means that we create digital ownership certificates for the future bottles which enables future owners/consumers to already buy the bottles digitally.
These physical bottles will be available when the wine or spirit has finished maturing. At this point the owner can either leave the bottles in safe storage (organized by CellarDAO) or can receive the bottles in their own storage.
These ownership NFTs are sold on our marketplace for a markup. There is plenty of margin between the price a producer gets and a price that retail consumers pay in stores or restaurants so we can offer good margins on both sides.
