With the help of Carbon Credit NFTs traded on the EnergyWeb Chain
It’s no secret that there was controversy surrounding cryptocurrencies last spring. Elon Musk first announced that Tesla had invested and would be accepting payments in Bitcoin, then retracted the latter on the basis of the energy consumption by the blockchain.
After the tweet came a flood of FUD articles blaming Bitcoin and other POW cryptocurrencies such as Ethereum and even Dogecoin, for the burning of fossil fuel. Many associated the tumble of the crypto markets that followed with the billionaire’s tweets.
It feels strange that this caused such an issue when a non-profit foundation called EnergyWeb, has been working on solutions to decarbonize blockchains for months if not years. They had already announced in September of 2020, that the XRP foundation managed to offset carbon emission of the XRP Ledger with their open-source software.
More recently, EnergyWeb co-launched the Crypto-Climate Accord, inspired by the Paris Climate Agreement, which aims to decarbonize the entire cryptocurrency and blockchain industry by 2025. They are offering an open-source toolbox to help tackle that challenge and track the progress.
How does EnergyWeb Doge fit with Dogecoin ?
We’ve seen a lot of copies of the Shiba Inu tokens. Some pledged to help dog shelters, some had more ponzi-like tokenomics than others, some were outright rugs. Even Vitalik Buterin made the news, when he burned and donated the tokens that were sent to him. We could say that most of those copies had no plans to help the original Dogecoin.
That brings us to the efforts put by some members of the EnergyWeb community, that created a token that isn’t meant to compete with Doge. Instead, it will make sure that the OG is looking good and sharp when it comes to carbon emissions.
The EnergyWeb Doge token lives on the EnergyWeb Chain, which itself is a carbon-neutral POA blockchain, validated by some of the biggest energy companies. The smart contract of the $EWD token collects a small 2% tax on every transaction, where 1% is split between a community fund and a liquidity pool. The other 1% goes towards a green fund that will be spent on renewable energy certificates, carbon credits, or even investments in renewable initiatives like crowdfunding solar installations in Africa.
What is needed to decarbonize Dogecoin ?
Reports have shown that a transaction on Doge blockchain consumes around 0.12 kWh of energy. Thus, with an historical 20 000 daily transactions, Dogecoin produce ~1,7 metric tons of CO2 every day. Added up, its over 600 metric tons of CO2 (the equivalent of 70 000 gallons of burnt gasoline) that is released in the atmosphere every year.
The game plan for EnergyWeb Doge is to use the tokenized assets on EnergyWeb Chain in order to offset those CO2 emissions.
The decentralized exchange CarbonSwap makes it possible for $EWD to purchase Carbon Credits in the form of NFTs. When those carbon credit are retired, each of them will offset 1 metric ton of CO2. In addition, some $EWD tokens will be burned to compensate for the tokens sold to acquire the NFTs. Effectively, the more $EWD is traded, the more carbon credits can be purchased by the green fund, and the more CO2 emissions can be offset.
If there’s any surplus in the green fund, it can even be used to offset past transactions going back to the genesis block !
A dashboard will soon be integrated on the EnergyWeb Doge Website that will track the progress of Dogecoin’s decarbonization. Stay tuned …
If you have any question about this project, please join our telegram channel https://t.me/ENERGY_DOGE