November 17, 2021

The Latest Cryptocurrency Taking Significant Steps To Reduce Carbon Emission

There is much speculation around blockchain and its impact on climate change and the carbon footprint that cryptocurrencies are leaving is causing widespread debate among the industry.

 

While this has been a global problem for many years now, branching from cars to clothes, furniture to food, in a recent study carried out by The Conference Board they found that 81% of consumers on a global scale strongly feel that companies should be doing more to preserve the environment.

 

A brand-new project has come to light with some very unique propositions that will effectively address global climate problems. KLIMA DAO has recently launched a carbon-backed digital currency and algorithmic climate protocol which will focus on illiquidity, opacity and inefficiency within the carbon markets.

 

It is not surprise that after years of rapid industrialization along with the massive growth of technology that this has taken a massive toll on the environment. While it is idyllic to think that everyone should move to cleaner and greener operations overnight, the reality is that it will take years for industries to successfully become environmentally friendly.

 

In the meantime, however, there are changes that can be made to ensure the steps are at least taken to get the ball rolling in order to neutralize the negative environmental impacts of certain industry activities.

 

Currently, in most countries, governments set a cap on the amount of carbon emissions (carbon dioxide or other greenhouse gases) a company is able to emit based on carbon credits that they hold. Not all companies emit the same amount of carbon emissions as others, so in this case, companies are able to essentially purchase carbon credits from other companies that are holding a surplus.

 

This has ultimately created a carbon market, and carbon offsets have become a license for companies to pollute the environment. As long as the price of carbon offsets is lower than the cost of going green, companies are not so interested and hold back from taking actionable steps to reduce their carbon footprint.

 

So how does KLIMA DAO plan to address this major global issue and potentially become a game-changer within the low-carbon economy, helping companies to drastically reduce their carbon footprint.

In short they are building a decentralized finance (DeFi) economy around carbon.

KLIMA DAO is a reserve-backed protocol, meaning that verified carbon assets back the digital currency. This is a unique way of streaming capital to high-impact carbon adoption and mitigation projects, bridging the gap between blockchain technology and traditional carbon offset markets.

So how exactly will this work?

KLIMA DAO will essentially incentivize users to lock carbon assets within the treasury so that their supply in the traditional market is minimized. Ultimately this will progressively increase the price of carbon assets, which will make the cost of shelving green initiatives with direct, tangible results, paving the way for the voyage of renewable activities.

How will the value of KLIMA be determined?

The intrinsic value of KLIMA will be determined by the price of the carbon asset locked in the treasury. The protocol can only mint a new KLIMA token if the user or users deposit at least 1 Bitcoin (BTC) and lock it away from the market. This will ultimately drive the price of BTC over time. Each BTC is backed by a carbon credit which guarantees the removal of 1 tonne of carbon. As a direct result of this, as the demand for KLIMA rises so too will the demand for BTC.

The initial goal for KLIMA is to host the carbon market in a blockchain ecosystem, giving a platform for users to engage with the market, and succeeding at balancing out the supply and demand within the carbon market in the long term.

Reducing the use of carbon emissions and becoming greener is starting to gain a lot of traction within the digital asset mining industry especially.

One company that particularly sticks out is NGS Crypto.

NGS Crypto has always had a green approach to their digital asset mining farm catapulting them to the forefront of reducing their carbon footprint within the industry.

-Mark Ten Caten, CEO and founder of NGS Crypto.

Formed in 2018, NGS Crypto is a financial technology (Fintech) company, designed to help all their members generate safe and consistent, high-return on investment; Helping them to build life-changing wealth.

Upon establishment, their goal was to give their members access to a new asset class in a way that was secure, free from volatility and yet still produced high returns. Essentially, they set out to create a product that could generate predictable, consistent returns; Without risking their members initial capital through speculation or investing in assets and merely ‘hoping the market goes up’.

In essence, they wanted to create a product that offered their members the lowest amount of risk, with the highest possible returns – that could withstand any market or global financial collapses or recessions. After years of research & development globally, they began offering our products to consumers in Australia in August of 2017 after getting approval from both ASIC (Australian Securities & Investment Commission) and the ATO (Australian Taxation Office).

As of 2021 NGS has helped over 950 members world-wide get involved in digital assets & cryptocurrency mining. With a proven track record of never paying out a member less than the minimum advertised return, 5 offices world-wide (including 2 in Australia), and 100 staff members internationally, NGS Crypto have established themselves as Australia’s leader in cryptocurrency and digital asset mining

 

Click here to hear from some of our NGS Members and their stories.