Scientists are unanimous: greenhouse gases are now the main threat to our planet. Among the various solutions proposed around the world, one project stands out by proposing to use blockchain to accelerate the ecological transformation. Find out how CarbonABLE is rewarding people fighting greenhouse gases by leveraging decentralised finance (DeFi) and non-fungible tokens (NFTs).
Blockchain for the environment
In recent years, worrying reports on ecological issues have been coming out one after the other. They all converge on the same conclusion: we must at all costs reduce greenhouse gas emissions and capture those already emitted into the atmosphere.
Among the various solutions proposed, CarbonABLE stands out by proposing to use the blockchain to finance ecological initiatives while offering rewards to users who have invested for the future of our planet. The project uses Web 3.0 tools to propose solutions using decentralised finance (DeFi) and non-fungible tokens (NFTs).
Reducing carbon dioxide emissions alone is no longer enough to avoid climate change. This is why the platform decided to develop decarbonisation projects based on the regeneration of nature, with the aim of expanding green areas. These constitute carbon sinks that effectively capture greenhouse gases and thus mitigate climate change.
To do this, CarbonABLE identifies the best reforestation, agroforestry and mangrove replanting projects to make them NFTs sold on their platform. Once funded, these projects will provide non-fungible token holders with passive income in stablecoins, as well as CARBZ tokens, the platform’s governance token.
Simply understand our project CarbonMarket DeFi NFT Climate pic. twitter.com/umAhd6FvfO
– CarbonABLE.io (@Carbonable_io) April 26, 2022
CarbonABLE addresses several system flaws
The first problem holding back the necessary ecological transition is the slowness and weakness of investments by States or large companies. Worse still, some states, such as Brazil, are carrying out massive deforestation, which is destroying huge carbon sinks and dramatically worsening climate change.
The second problem is the lack of transparency and efficiency of the voluntary carbon credit market. This financial mechanism, which allows the purchase or sale of carbon credits, provides an incentive to finance environmental projects.
This market is of great interest to companies that want to contribute to carbon neutrality, but today it functions poorly, particularly due to a lack of traceability of carbon credits.
Thus, this lack of transparency in carbon credit trading works to the disadvantage of companies that are sometimes accused of “greenwhashing”, which can buy credits that do not correspond to reality (for example, the forest burned down a long time ago!).
The last problem is the lack of projects in blockchain connected to the real world. The current boom in blockchain and cryptocurrency is attracting more and more investors worldwide, but many projects remain unconnected to reality or even purely speculative. However, users are increasingly looking to increase funding for projects that offer an attractive return, but also projects that would have a positive impact on the world.
This is why CarbonABLE is proposing to make investment accessible to all via the blockchain. This technology is the answer to the 3 problems raised above. Thanks to the transparency and traceability it provides, it allows crypto-investors to massively and rapidly finance high-impact nature regeneration projects.
Here, NFTs offer proof of participation in various decarbonisation projects, and allow their holders to get an annuity on the carbon credits from the project for several decades as well as statistics and reports on the positive impact it has had on the ecology and local communities.
What blockchain to choose for CarbonABLE
The range of blockchains on offer is growing every day, making it possible to find the one that is best suited to each project. For CarbonABLE, the choice is obviously for a consensus that uses as little energy as possible.
It is therefore natural that CarbonABLE decided to turn to a Proof of Stake blockchain. The first two projects carried out on Cosmos for its interoperability and low resource consumption allowed for an instant sale despite a terribly degraded crypto context following the UST depeg.
In the future, it is also possible that the project will turn to Ethereum once that behemoth has made its transition to Proof of Stake. The community is now being consulted to see which blockchain CarbonABLE might turn to.
How CarbonABLE is generating revenue
CarbonABLE will get revenue from 3 different points to build a sustainable project:
- A commission on the sales of NFTs when they are issued;
- A fee from the resale of NFTs on the secondary market;
- A percentage on the sale of carbon credits to cover management costs.
The longevity and development of CarbonABLE is based on these different revenues and therefore allows for the sustainability of investments. The percentage received from the sale of carbon credits can be discussed by the community through governance votes to provide decentralisation of CarbonABLE.
Financial rent for investors
Ownership of a CarbonABLE NFT is a way to demonstrate involvement in projects that have a positive impact on the fight against climate change. These non-fungible tokens can then be resold on the secondary market, or remain in their owners’ portfolio.
In addition to allowing investors to obtain proof of their participation in green initiatives with a tangible impact in the fight against global warming, CarbonABLE offers rewards for investors who decide to lock in their assets via staking.
Firstly, a regular passive income is offered through the sale of carbon credits generated by the various investments. This income will be allocated to investors in stablecoins and CARBZ, CarbonABLE’s governance token.
Staking then offers benefits to more regular users of the platform. These include reduced service fees and access to airdrops, but also priority access to future projects.
The CARBZ token and its roles
In addition to stablecoin rewards, investors will receive CARBZ, CarbonABLE’s governance token that has several roles within the platform.
Figure 1: Visual of the CARBZ token
A utility token
Owning CARBZ can be beneficial in many ways. Increased revenue is one of them, as the fees paid by the platform’s users as well as the surplus generated by the sale of carbon credits will be shared with the users who own CARBZ.
Owning CARBZ also increases your chances of getting priority access to future CarbonABLE NFTs.
A governance token
The CARBZ also gives its holders a vote in the governance of the CarbonABLE protocol. CARBZ holders will be able to vote on how to improve the protocol and take part in decisions about revenue distribution.
A successful first trial
On Friday 6 May 2022, the first sale of CarbonABLE NFTs took place. After a 5pm start, it took only two seconds for the 160 NFTs on offer to be sold to the community
CarbonABLE NFTs 1st Mint are SOLDOUT in less than 1 minute
Thank you for the amazing support!
Don’t worry another MINT is coming very soon ! pic.twitter.com/08Dcg50YEs– CarbonABLE.io (@Carbonable_io) May 6, 2022
This first project to replant trees on the Banegas farm in Costa Rica will capture 1,851 tonnes of CO2 over the next 30 years. The replanting of these 8,000 native trees will also allow the return of local fauna and flora, which represents a first victory for CarbonABLE and biodiversity.
Despite the unfavourable context due to the recent news of the Terra ecosystem and its UST, a second sale of 360 NFTs will remain a great success, as it took only a few minutes for the stocks to be sold out. The sale will fund a new mangrove replanting project in Las Delicias, Panama, which is expected to capture nearly 5,000 tons of CO2 over the next few years.
Conclusion on the CarbonABLE project
CarbonABLE is an ambitious project that aims to create a bridge between DeFi and the real world to develop many green projects.
Easy to access, it is now possible for everyone to participate in initiatives for the planet while generating a passive income.
Its transparency and reliability could make CarbonABLE a sustainable and preferred solution in the fight against climate change.
