In its early days, Web3 received heavy criticism for its impact on the environment. Until “The Merge” in September 2022, Ethereum was estimated to use as much as 78 terawatt hours of electricity annually. Switching to a Proof-of-Stake consensus mechanism is anticipated to drastically reduce the mainnet’s energy consumption, ushering in a new era of blockchain technology for the crypto giant. And even though the spotlight was firmly on Ethereum for making this switch, it’s not the only, or the first, blockchain project to change course and implement environmentally-conscious business practices. In fact, there is a wide-ranging ecosystem of blockchain projects solely focused on environmental issues, conservation initiatives, and climate change.
The foundation for most of these projects is based on regenerative finance or ReFi, an economic model that has become firmly rooted in many Web3 ventures.
What is Regenerative Finance — ReFi
Refi is one channel through which these companies are taking on environmental and socio-economic issues. It is the Web3 amalgamation of regenerative economics and decentralized finance and is highly effective in the fight against climate change. As the name implies, regenerative economics focuses on business practices that aim to rebuild and restore rather than exploit and deplete. Through ReFi, it’s possible to fast-track climate action by circumventing politics and bureaucracies, and allowing both businesses and individuals to freely participate in charitable initiatives.
An example of such a project, is Ekta’s blockchain game, MetaTrees.
MetaTrees — Web3 Environmental Gamification
A major area of concern that ReFi and Web3 can make a positive impact on, is deforestation. Currently, it’s estimated that over 15 billion trees are cut down each year. Ekta’s approach to combating this loss of natural resources is through its self-developed blockchain game, MetaTrees. MetaTrees aims to bring great gaming mechanics and sustainable tokenomics to the blockchain gaming world. And through gamification and strategic partnerships, MetaTrees can spearhead reforestation initiatives and incentivize VCU purchases. To kick off its in-house reforestation initiative, Ekta has dedicated a section of land on Ekta Island to plant fruit trees, which will also serve as an additional food source for local communities.
Regarding partnerships, MetaTrees is in the process of teaming up with One Tree Planted, a global reforestation charity that plants one tree for every dollar donated. Crypto is a major donation avenue for the charity since crypto donations are both tax-deductible and a non-taxable event, which, according to the charity’s website, means that you don’t owe capital gains tax on the appreciated amount.
With blockchain technology powering projects like these, participants and players have full transparency of the activities, helping to build confidence and trust, something sorely lacking with traditional ventures.
Total transparency for full accountability
Another method through which Web3 technology can help drive change is by ensuring participants are fully informed of fund allocations and activities. Blockchain technology accomplishes this through two integrated characteristics; decentralization and immutability, meaning transactions cannot be altered or concealed. This level of transparency means that participants can see how much of their donations or purchases actually go towards these initiatives and helps hold organizations accountable for their actions (or inactions).
Blockchain technology is helping environmental efforts succeed in a myriad of ways, and we’re curious to see how quickly organizations will adopt the technology for this purpose. To learn more about these projects, click on the links below:
- MetaTrees — https://metatrees.io/
- One Tree Planted — https://onetreeplanted.org/
- Ekta — https://www.ekta.io/
Tell us about a Web3-powered environmental project you’re passionate about or what your predictions are for the intersection of blockchain and environmentalism.
