Hello world !
Today let's dive deeper into Regenerative Finance in a Tokenomic way.
This post will explain green tokens and their role in regenerative finance or ReFi, especially to those not familiar with web3 and blockchain technology. In chapter 3 I'll give a real-world business application example to illustrate what #ReFi can do and I will explain the neologism or the new word I have invented to promote the necessity to understand that as a specie that will continue the exploitation of our home planet ressources we have to integrate Ecology into Economy and not to operate both. I call this essential resilience Principe : ECONOLGY.
First let's begin with the definition of the web3 technological innovations, if you are already familiar with it, go directly to chapter 2.
1 - What is Blockchain Technology?
Blockchain: Think of it as a digital LEDGER or record book. Just like a ledger in a store that keeps track of transactions, a blockchain keeps a record of digital transactions. The difference is that this ledger is distributed across a network of computers, making it very secure and hard to tamper with.
: This is the third generation of the internet, where websites and apps (dApps) operate on decentralized networks (blockchains). It's a step towards an internet where users have more control over their data and assets, unlike the current internet dominated by a few large companies (you probably know them, they are called the GAFA's : Google/Youtube, Amazon, Facebook/Meta).
What are Tokens?
: In the blockchain world, tokens are digital assets or units of value. They can represent various things, from money (like Bitcoin) to ownership of a piece of art. The technology to make Tokens as an asset from literally anything (a drawing, some shoes, a character skin in gaming, a pdf file, a song, an entire building or even this post) almost ANYTHING ! This is the futur of assets and this will change the relation of the humans with things/objects from the real world or from the virtuel world regarding their value. This is called tokenization : the fact you use blockchain validation technology which is a distributed ledger that's secure, transparent, and tamper-proof to turn any real or virtual thing into a token. Isn't that amazing ?
This is the new revolution in humanity history, like the "invention" of fire was once, or later on electricity and more recently the internet and smartphones !
What are Green Tokens?
Green Tokens: These are a special kind of token that is linked to environmental and sustainable practices. They are used to represent, encourage, or reward actions that benefit the environment. For example, a green token might be issued for generating renewable energy, recycling waste, or preserving a forest.
2 - So finally : how can Green Tokens help Regenerative Finance?
(Reminder, I have writen about thisin my first post :is ReFi ?
The role of Green Tokens in ReFi :
Regenerative Finance (ReFi): This is a concept in finance that aims to align financial activities with sustainable and environmentally beneficial practices. It's about creating ecology based economic systems that regenerate and restore ecosystems rather than deplete them. I call this ECONOLOGY a mix of ECONO-my and eco-LOGY.
Green Tokens can fund Environmental Projects using these 4 triggers:
Tokenization and Allocation: A project that aims to have a positive environmental impact creates a "green token". This token is designed to represent some aspect of the project's environmental value, like carbon credits, a share in renewable energy production, a planted tree or a land surface area, but it can also support any agriculture regeneration project called "agroregen farming".
Sale or Distribution: These tokens are then sold to investors, given away as rewards, or distributed to participants in the project. The sale of these tokens raises funds for the project.
Use of Funds: The money raised from selling the tokens is used to finance the environmental project or to guarantee a revenue to the agro ecologic farm. This could involve research and development of the project, purchasing equipment, hiring staff, or other operational costs.
Value Increase and Trading: As the project progresses and achieves its environmental goals, the value of the tokens may increase. Token holders can trade them on various platforms, and the project can issue more tokens if needed to raise additional funds.
3 - Real-World Example: The SolarCoin Project
$SolarCoin is an example of a green token used to fund and incentivize renewable energy production, specifically solar energy.
How it Works
SolarCoin is granted to solar energy producers. For every MWh of solar energy produced, the producer receives one SolarCoin. This is quite incentive and acts as an additional reward over and above any government subsidies or savings on energy bills, incentivizing more solar energy production.
When you have some SolarCoins you can trade them on various cryptocurrency exchanges. They have a market value and can be bought and sold like other cryptocurrencies.
Funding the Project
The project might have initially raised funds by an ICO pre-selling a portion of the SolarCoins or through other fundraising methods. After that the increasing adoption and the future trading of SolarCoin can raise the profile and value of the token, potentially attracting more investment into the project and solar energy. As long there will be sun this business model is potentially eternal !!!
The ECONOLOGY Impact
By incentivizing solar energy production, SolarCoin aims to reduce carbon emissions and promote renewable energy sources and at the same time it provides an economic incentive for solar energy producers, who will potentially make solar projects more financially viable as they can finance R&D to improve the photovoltaic technology ! It's a real win-win ECONOLOGY business model !
ECONOLGY TOKENOMICS ARE THE FUTUR OF HUMANITY
So know you can understand better how tokens can help to finance Natural Ecosystems Regeneration, Biodiversity Restoration or Agro Ecology businesses development and so on.They play a crucial role in regenerative finance by incentivizing eco-friendly practices, ensuring transparency, funding environmental projects, and enabling widespread participation in environmental conservation.
HIGH VALUATION : the global tokenization market value is estimated through a recent report by Allied Market Research that it will reach a value of USD 8.07 trillion by 2030, growing at a Compound Annual Growth Rate from 2022 to 2030 !!!
I really believe in the incredible potential of blockchain tokenization to gather Ecology and Economy and to Finance our Natural Ressources to give the future generations the chance to be resilient as a real Intelligent Specie. For now, just using Nature to produce a lot of crappy stuff and destroy our environment, our house, is so absurd and profoundly stupid. This is my way of seing it, I hope I'm note the only one dear human fellows ??
That's why I will pursue my path by continuing to follow and explain via this blog the bests Green blockchain #DApps, #ReFi, #Biodiveristy #GreenTokenization and #GreenTokenomics projects and Platforms.
