08 APRIL 2024
08 Apr 2024


StarIGT, photo by StarWORKS

In the rapidly evolving world of digital assets, the concept of tokenization has emerged as a groundbreaking innovation, reshaping the landscape of investment and ownership. At the forefront of this transformation is StarIGT, a pioneering initiative by StarWORKS that is a testament to the potential of income-generating tokens (IGTs). 

This article explains the origin of tokenization, what StarIGT is, how it fits into the world of tokenization today, and why it's important for the future of blockchain-based investments.

The Origin of Tokenization

Digital representations of real-world assets have existed in various forms before blockchain technology. For example, Real Estate Investment Trusts (REITs) for real estate and Exchange-Traded Funds (ETFs) for commodities are traditional tokenization methods. 

These financial instruments have made it possible to invest in and digitize asset classes previously limited by their physical nature, thereby transforming them into more accessible and investable segments of the economy.

Pre-Blockchain & Initial Ideas of Real-World Asset Tokenization

As we mentioned briefly above, the concept of asset tokenization, even before the era of blockchain technology, involved the process of converting real-world assets into digital tokens. This was primarily done to facilitate easier transfer and management of assets, enhance liquidity, and management of assets. 

The early attempt at tokenizing gold by E-gold through redeemable certificates marked one of the initial efforts to tokenize a real-world commodity for retail markets. Although E-Gold didn't achieve large-scale success, the idea of tokenizing commodities for retail markets continues to be a significant interest in various industries. Participants in global supply chains are increasingly choosing tokenized assets for their improved efficiency and accessibility.

Real World Use Cases for Tokenized Assets

Real-world use cases for tokenized assets have been expanding across various sectors, offering new opportunities for investment, ownership, and asset management. Here are some examples:

a. Real Estate

Property tokenization is a concept where real estate is divided into digital tokens that represent ownership or a share in the property. These tokens are built on blockchain technology, ensuring transparency, security, and immutability of the records. It's like a game in the sense that investors can buy, sell, or trade these tokens, but it's a real investment in a tangible asset.

For example, a $1 million property could be divided into 1,000 tokens, each representing a 0.1% ownership stake in the property. Investors can purchase these tokens, becoming partial owners of the property. They can benefit from rental income and property appreciation, proportional to their ownership.

A real-world case of property tokenization is the Aspen Coin, which represents partial ownership in the St. Regis Aspen Resort. The tokens were sold through a security token offering (STO), allowing investors to own a fraction of the luxury resort. This approach democratizes access to high-value real estate investments, providing liquidity and flexibility to investors who might not have the capital to buy an entire property.

b. Tokenization of Wine into Digital Assets
This type of real-world tokenization is a novel approach that combines the world of fine wine with blockchain technology. By tokenizing wine, each bottle or batch can be represented as a unique digital asset on the blockchain. This process provides several benefits, including provenance tracking, authenticity verification, and easier trading and investment.

For example is the collaboration between Château Darius and the blockchain platform Vinsent. They released a limited edition of tokenized wine, allowing buyers to purchase NFTs representing ownership of specific bottles from a unique vintage. The owners can choose to have the physical bottle delivered or trade their NFTs on the platform.

c. Art Tokenization

Another example of asset tokenization is the tokenization of art. This process involves creating digital tokens that represent ownership or shares in a piece of art. These tokens can be traded on blockchain platforms, allowing for more accessible and liquid art investment.

A real-world case of art tokenization is the tokenization of Andy Warhol's artwork "14 Small Electric Chairs." The project, conducted by the platform Maecenas, allowed investors to purchase fractional ownership of the artwork through digital tokens. This approach democratized access to high-value art investments and provided a new way for art collectors and investors to trade and manage their assets.

Blockchain-Based: The Tokenization in the Present Day

The introduction of public blockchains significantly increased asset tokenization for several reasons. They enable direct, verifiable, and reliable transactions, eliminating the need for costly intermediaries. This accessibility appeals to a broader population and makes markets fairer, leading to widespread adoption in global remittance markets. 

Public blockchains provide immutable, third-party records, enhancing reliability in reporting and reducing tokenization costs.

The launch of Ethereum marked a significant advancement in asset tokenization through smart contracts. Early efforts on this platform aimed to decentralize financial instruments like investment funds but faced regulatory and technological hurdles.

Currently, the future of tokenized real-world assets is becoming clearer. Pioneering achievements and innovations have established the foundation for widespread tokenization of real-world assets. These developments continue to drive regulatory changes and technological improvements in the sector, leading to new innovations and applications.

So, how StarWORKS participate in the present and future of blockchain-based tokenization?

StarIGT: StarWORKS Answer to The Blockchain-Based Tokenization

Illustration of Blockchain, photo by Leelo on Pexels

StarIGT represents StarWORKS’ innovative answers to the evolving landscape of blockchain-based tokenization. As a cornerstone of its digital asset ecosystem, StarIGT aims to redefine how real-world assets are tokenized and traded. 

Leveraging the power of blockchain technology, StarIGT offers a secure, transparent, and efficient platform for investors and asset owners alike. 

What Exactly is StarIGT?

StarIGT is a blockchain-based platform that enables businesses to transform their real-world assets (RWAs) into digital tokens. This innovative medium provides a marketplace where businesses can offer their RWAs as fractional non-fungible tokens (NFTs), making them more accessible and easier to trade. 

A Short Introduction: What is an Income-Generating Token (IGT)?

An Income-Generating Token (IGT) is a type of digital asset that represents an ownership interest in an income-producing asset, such as real estate, dividend-paying stocks, or bonds. 

These tokens are built on blockchain technology, which ensures transparency, security, and easy transferability. IGTs provide investors with a way to earn passive income through the distribution of profits generated by the underlying asset, while also offering the potential for capital appreciation. 

These fractional tokens are stored in a Membership Identity Token (MIT), which is a proof of identification and access to the StarIGT and exclusive perks that IGTs offer. This approach not only simplifies the process of asset tokenization but also opens up new opportunities for investment and commercialization in the digital economy.

How StarIGT Works?

StarIGT offers users varied types of fractionalized assets, which can be bought in bundles on the marketplace. Users can purchase these assets and earn interest until the due date. They can redeem their assets anytime in StarXP through the StarMEX money changer or wait for the IGT to mature, which continues incentivizing users until it reaches maturity. This system provides flexibility and potential for ongoing rewards for StarIGT users.

Connoisseurs Club Ltd: A World of Unparalleled Luxury and Refinement!

Connoisseurs Club is the first series of Tokenized Assets that will be introduced in StarIGT

The Connoisseurs Club is a membership series offering a community of like-minded enthusiastic lovers of luxurious things which can be traded for financial reward and enjoyed. The membership includes tokenized Connoisseur-branded Irish Whiskey bottles and casks that reward membership holders with a share of passive income from the Connoisseurs Club business operation.

The Connoisseur Branded Tokenized Irish Whiskey 
The Connoisseur branded Irish Whiskey IGTs are linked to oak cask aged single pot / Malt Irish Whiskey, which Connoisseurs Club Ltd operations will distill. The tokenized assets will also come with aged Irish Whiskey that will be served exclusively to Connoisseurs Club members.

About Connoisseurs Club Ltd
The Connoisseurs Club Ltd was established as a result of a merger between the Liquid Gold Irish Whiskey Club, Londonderry, Northern Ireland, and blockchain technology research & development company. 

The Connoissours Club Ltd, managed by Starworks, is also incorporated in the Seychelles and is membership-owned. Membership is a privilege to those who enjoy the finer things of life and who hold StarCCIW Tokens representing rights to bottles & casks of Connoisseur Branded Aged Irish Whiskey. 

Unlike other membership programs, Connoisseurs Club & its Irish Whiskey IGTs offers the added benefit of generating income for its members, making membership more than just a status symbol.

The club is designed to provide a unique experience, combining luxury with practical support for businesses and individuals. Membership in the Connoisseurs Club is not just about rewards; it's about opening doors to new opportunities and experiences in both personal and professional life.

So, what is the relationship between StarIGT and Connoisseurs Club?

Connoisseurs Club is an integral part of the StarIGT. As mentioned earlier, the fractional tokens created through StarIGT are stored in a Membership Identity Token (MIT), which is synonymous with the Connoisseurs Club Membership. 

This relationship signifies that by participating in StarIGT, members are also gaining access to the exclusive benefits and opportunities provided by the Connosieurs Club, further enhancing the value of their investment and membership.

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