HECTARE Audit: The Land Is Real, the Contract Is Missing

The hardest part of an RWA token is the asset. Web3Eco has done that part: leased land in Uzbekistan's Fergana Valley, a registered operator, more than 150 000 trees in the ground. What it hasn't published is the contract that makes a buyer a co-owner of the income. Our audit scores HECTARE 47/100, grade CCC.

What founders should take from it

Most of the gap between HECTARE and a solid grade is disclosure, not farming. That makes it the cheapest gap to close, and the one investors notice first.

1. **Publish the document that creates the right.** The holder's contract matters more than the deck, the videos and the FAQ. Without it, everything else stays a promise.
2. **Separate price from valuation.** If the asset costs more for small buyers, say why, and back the price with an independent valuation.
3. Give the payout formula. A holder should be able to compute their own return: per hectare or per dollar paid, before or after fees, and which fees.
4. Design the exit before the first sale. A long asset cycle is normal in agriculture. No exit at all is not normal for a retail ticket.
5. Secure every link in the chain. When a contract, an issuer and a 51% stake in an operator stand between the investor and the land, each link needs legal paperwork.

What HECTARE is

HECTARE is a share in FastForest Uzbekistan, a product of Swiss-registered Web3Eco AG. Entry starts at $100 for 0,001 ha. A full hectare costs $59 500. Payouts are promised in USDT from 2027, once a year between December 1 and March 31, through 2052.

According to the app, the project has raised $3m from 400+ investors, with another $1m from the company itself. It works 300 ha, and the first large paulownia harvest is planned for 2029.

The asset checks out

On the land, Web3Eco discloses more than many RWA issuers. It has published a lease with the Fergana city administration dated April 7, 2022, won at a state auction. The plantation operator, Uzbek company GREEN WORLD FORESTRY, is 51% owned by Web3Eco AG. Both companies appear in government registers.

The holder's right doesn't

The app describes HECTARE as a revenue-sharing agreement (RSA) under Swiss law, with a share of income, insurance and a full refund if the company fails its obligations. The agreement itself isn't public, and neither are separate product terms. An investor can see that the land exists. They can't see what they bought.

Two details raise the stakes. Under the lease, the crop and its proceeds belong to the operator, so the holder's right can only be contractual. And the issuer controls 51% of the operator, not the whole business.

In the Emirates the same gaps become licence conditions. VARA and the ADGM regime treat a share of income from a physical asset as a regulated investment and ask for the investor contract, an independent valuation and a disclosed exit before a product can be distributed. An app selling $100 lots into a region without a named licensee is the pattern regulators look for first.

Price depends on ticket size

A buyer of a 0,001 ha lot pays the equivalent of $100 000 per hectare. A buyer of a full hectare pays $59 500. That's 68% more for the same asset.

The price in the app is a price list, not a valuation of the plantation, and no independent valuation has been disclosed. Under the 8Blocks methodology this is a red flag. It caps the grade at CCC, although the block scores add up to a B.

The issuer's own forecast shows the cost of that gap. If payouts follow hectares rather than dollars paid, as the app's wording suggests, $100 000 spent on 0,001 ha lots returns about $78 760 over 2027–2031, or 0,79x. The same money in one-hectare lots returns about $132 370, or 1,32x. Both figures are before a fee whose size isn't disclosed.

No way out until 2052

You can buy a share in the app. You can't sell it anywhere. There's no secondary market, no issuer buyback and no described return of capital at the end of the term. For a retail investor with a $100 ticket, that's more than 25 years without an exit.

What would change the score

If Web3Eco publishes the RSA and discloses fees, the payout formula, an independent valuation and operator financials, the score under the same methodology rises to about 57, grade BB, and the flag cap lifts. The rest can't be fixed by disclosure: the land is leased, the issuer owns a stake in the operator, and there's no secondary market.

This audit uses version 2 of the 8Blocks methodology, so its scores aren't comparable with version 1 audits. 8Blocks has advised Web3Eco on the project's utility token. Materials from that work were not used in the audit.

We run these structure reviews out of Dubai, so if you are issuing a real-asset token here, we can go through the holder contract, the pricing model and the exit mechanics before the first sale.

Full audit: full HECTARE audit