APPLICATION OF NFTS AS CARBON CREDITS
One metric ton less CO2 emissions are represented by a carbon offset credit. There are compliance credits that are required by local, national, or international agencies, but there are also optional carbon markets where companies can buy credits. The underlying carbon reductions and advancement toward companies’ climate change objectives can then be claimed.
Voluntary carbon credits are typically exchanged off-chain. But this strategy has two significant flaws. Scaling is difficult, and even if certification agencies vouch for the validity of carbon offsets, there are significant quality differences across the many offsetting operations.
Both issues can be resolved with the help of blockchain technology thanks to open platforms that hasten the funding of carbon offset projects. Additionally, it makes initiatives traceable and trackable because of its transparency.
Numerous blockchain projects aim to increase the efficiency of the markets for voluntary carbon credits. Others prioritize NFTs, while some businesses, like FlowCarbon, issue their fungible tokens that stand in for one metric tonne of CO2 emission reduction.
The platform MintCarbon, supported by the software firm Deepmarkit, enables owners of carbon offset projects to mint their offsets into NFTs. A further frequent issue of the old carbon markets, dual listing of the same carbon credit, is prevented by the platform’s assurance that a certification company examines all listed carbon credits. The generated NFTs could incorporate a range of project information, such as visual information, costs, and statistics.
The platform retains up to 10% of the value of the credits as a minting fee. Any decentralized NFT marketplace, such as OpenSea and Rarible, is where owners of carbon credits can advertise their NFTs for resale. The transaction fee for reselling an NFT is divided between MintCarbon and the owner of the NFT credit.
The NFTs are in the ERC-1155 standard, and the platform is based on the Polygon blockchain. Developers of carbon offset projects can fractionalize their NFTs to represent a single unit of CO2 because these standards can simultaneously represent numerous token kinds, both fungible and non-fungible.
A prominent player in the blockchain carbon industry, Amazon NFTs from Moss Moss, has a distinct strategy. The corporation issues NFTs that reflect land shares in its Amazon rainforest restoration initiative and are encrypted digital ownership certificates. In other words, NFTs are specifically associated with a high-quality carbon offset project.
For this reason, Moss established a fund to safeguard forests for 30 years. By paying for costs like patrolling and satellite imaging related to monitoring deforestation, the sales of the NFTs will contribute 20% of the total amount. For effective monitoring, the business teamed up with Descartes Labs.
By promising to protect the land, purchasers of Amazon NFTs gain the right to use the actual property. In other words, NFT landowners are not allowed to deforest their properties in any way.
Three NFT land sales for the Blue River Forest project’s parcels have already taken place. Each series contained 50 NFTs or 150 hectares of total preserved area.
Another blockchain business that connects NFTs with initiatives that use actual natural resources is CarbonABLE. Instead of owning the forest parcels in this case, NFT purchasers receive a certificate attesting to their participation in a project to offset carbon emissions through natural means. Owners of NFTs will be able to keep track of on-field activity, much like Moss, thanks to the integration of satellite imagery technology.
A carbon offset project must satisfy three of the 17 Sustainable Development Goals for CarbonABLE to approve it. The goal of CarbonABLE is to find and fund these decarbonization projects through the sale of NFTs, while also rewarding NFT buyers with high stake yields.
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NFT Labs is a web3 company exploring big ideas in community, utility and engagement to push the crypto, NFT and metaverse space forward. To learn how your organization can participate in the web3 revolution, write to us at hello@itsmyne.club.
We’re backed by leading blockchain institutions including Longhash Ventures, Antler, Oracles Investment Group, and Shima Capital among others. NFT Labs is also the issuer of the MYNE token ($MYNE), a BEP-20 utility token for Itsmyne and partner applications. MYNE serves as the gateway between traditional social media and blockchain-based social economies.
