Crypto has been getting a lot of negative attention from governments recently, with much of the focus being directed at Bitcoin’s energy usage. It is true that Bitcoin uses a lot of energy, but this pales in comparison to the energy used by the legacy financial system, and Bitcoin is actually one of the only crypto assets on the market that plans to continue using the energy-intensive “Proof of Work” mining algorithm. The rest of the industry is moving to more sustainable options, and there are many different blockchain projects that are working specifically on environmental causes, using this new technology to achieve things that weren’t possible before.
One great example is Solid World DAO, a Decentralized Autonomous Organization, that is using Web3 and blockchain technology to fund efforts that will clean up the planet. A DAO is an idea from the crypto industry that allows websites, companies and other organizations to be governed by decentralized groups of people, similar to a cooperative.
Solid World is building a community that will help nature-based carbon sequestration projects to get pre-funded using blockchain technology. Financing these types of projects is one of the primary functions of voluntary carbon markets. In these markets, participants who can show that they have helped reduce carbon and improve the environment are paid with carbon credits that they can sell to other participants who want to buy credits to offset their own carbon footprint. However, the process to get certified and funded takes a very long time, so these projects need to pay for their own development for up to five years before they are reimbursed. This is a big obstacle for many projects, and it prevents some of them from even getting started.
Solid World DAO is hoping to change that with a pre-certification process that will enable credits to be certified and sold immediately, which will encourage more positive growth in the carbon economy and help carbon projects along in their development so they can continue their important work without major financial concerns
Solid World already has reliable carbon sequestration partners in farming and forestry, who have around 2.5M acres of combined land, and all of them are improving their areas and eligible to sell their credits.
Solid World DAO is tapping into a regenerative finance strategy, which seeks to use financial markets to direct funding and attention towards sustainability efforts. “Regenerative finance” is a broad term that is used to describe a variety of different strategies that use markets to direct funds and attention towards worthwhile projects that improve society and the environment. This often involves realigning incentives so it is financially advantageous to improve the environment and make the world a better place. Regenerative finance flips the degenerative culture and incentives of traditional markets on its head, turning it into a regenerative culture with more intentional incentives.
Solid World DAO is hoping to rethink the entire carbon economy, while solving some of the major problems that have been preventing these markets from reaching their full potential.
The platform and it’s native token will be launching in Q2 or Q3 of this year, but they are building their community now and starting to get people involved. The best place to get started is by joining the Solid World discord, where you can keep up with all the progress and find out how you can contribute. I recently joined the DAO as a community manager, so feel free to ask me any questions you might have about the project in the Discord or Telegram channels. We also have weekly community calls at 1PM EST every Tuesday in our Discord, where you will be able to ask questions about the project as well.