The Malu Grape project in Shanghai has sparked discussion as China's first attempt at Real Asset Tokenization (RWA) in agriculture. However, an examination of its structure reveals serious decentralization and innovation issues.
Project Participants and Their Roles
Tokenizing real-world assets (RWA) requires collaboration among multiple stakeholders. Participants in the Malu Grape project can be divided into two groups: core stakeholders and supporting institutions.
**Core Participants:**
- *Zuo’an Xinhui (Project Operator):* Responsible for integrating grape production data, issuing NFT digital assets, and managing equity financing. - *Shanghai Data Exchange (Compliance Platform):* Provides on-chain verification services and builds NFT trading infrastructure. - *Malu Town Economic Development Service Center (Government Coordinator):* Provides policy support and resource coordination. - *Malu Grape Producers (Underlying Asset Providers):* Supply the physical grape assets and generate agricultural production data.
**Supporting Institutions:**
- *Blockchain Infrastructure Provider (AntChain, presumed):* Delivers blockchain technology for secure on-chain data storage. - *Compliance and Risk Control (Law & Accounting Firms):* Design legal frameworks and audit asset flows. - *Asset Valuation Institutions (Unnamed):* Provide price models for brand and agricultural data. - *Equity Custodian (Shanghai Equity Custody Center):* Manages SPV equity registration to ensure transaction transparency.
The Root Problem: Three Key Features
An analysis of the Malu Grape project shows it is not a true RWA initiative, despite promotional claims. Here are some reasons:
- *Malu Grape NFTs:* 2,024 NFTs were issued strictly defined as 'digital collectibles', tied only to product consumption rights without income claims. - *Restricted Function:* The NFTs effectively serve as presale vouchers for agricultural products with strict circulation limits. Holders receive delivery cards worth ¥200–300 and game points but gain no access to data-generated income. - *Governance:* Decisions are fully controlled by the SPV and local authorities, with no public voting, challenging the principles of decentralization.
Final Assessment of the Project
In conclusion, the Malu Grape project represents a compliance-driven equity financing model disguised as an NFT product. It serves as a 'blockchain shell with a traditional finance core', where technology is used to enhance credibility rather than democratize ownership. Operating under strong government influence, it highlights a unique China-specific RWA framework. Acknowledging its true identity as an equity financing model, as well as its dual nature, offers valuable insights into the limits and potential of RWA innovation in China's agricultural sector.
The Malu Grape project raises important questions about decentralization and income rights in the context of real asset tokenization in China. Despite its shortcomings, it also showcases the potential for innovation in the RWA space under strict regulatory frameworks.
