3 - 4 minute read
Regen Network, a layer 1 blockchain, has been developed to mint ecological assets such as carbon credits. The blockchain is built on the Tendermint consensus architecture and counts Cosmos blockchain as one of its users. The platform is built to house three types of protocols, which are Ecological State Protocols, Ecological Contracts, and Supply Protocols, all essential for ecological accounting. The Regen Marketplace launched in October, and so far has only included carbon credit projects. The company also plans to work on protocols for grassland health, regenerative agriculture, and blue carbon. Regen Network requires the digitization of ecological assets on blockchains, thus bringing transparency to the evaluation and verification of credits that are currently being traded on voluntary carbon marketplaces, which often lack transparency.
Fiat currency and cryptocurrencies assign economic value to goods and services based on the laws of supply and demand, although what these models are not particularly good at doing is encompassing other types of value, such as social, environmental, and ethical. Christian Shearer, co-founder, and chief investment officer of Regen Network, said “Everything that you buy has a certain financial price, but none of the planetary, none of the ecological impact is calculated into that.”
The for-profit entity manages the token issuance and sale of its native crypto, REGEN. A nonprofit organization, Regen Foundation, has been created to be an independent guardian of the network by giving power to network participants, such as indigenous people, rights-of-nature organizations, scientists, and activist groups, said Gregory Landua, co-founder of Regen Network.
Regen Network requires a shift in mindset to realize its vision, which is to build a novel system of value beyond economic incentives. Investors who want to extract as much money from the system as possible consider it an unattractive asset. They view the size of the market, the speed of return on their investment, and the possible risks. However, if Regen’s bet pays off, which will likely require a good amount of government policy, natural capital and ecological assets will be a multi-trillion dollar industry.
The Bottom Line
Regen Network’s platform is built to bring transparency to the evaluation and verification of credits that are currently being traded on voluntary carbon marketplaces. Regen Network requires a shift in mindset to realize its vision, which is to build a novel system of value beyond economic incentives. However, if Regen’s bet pays off, which will likely require a good amount of government policy, natural capital and ecological assets will be a multi-trillion dollar industry.
