#13 The ReFi Agenda

As ReFi comes into the crypto mainstream, driven by tokenised carbon markets, new decentralised financing protocols, and a proliferation of Purpose DAOs, we set out an agenda for exploring this phenomenon, as well as the opportunities this is creating in the fast-growing Tokenised Earth Economy.

#13 The ReFi Agenda

ReFi is now more than a meme. It has become a phenomenon – within a year!

Climate has become a crypto play, as the solution space is moving from TradFi, to DeFi, and now to ReFi. This is creating important new narratives for Web3, which until recently has been dominated by public perceptions that blockchains are bad for the planet, and that crypto is a speculative wild-west, driven by greed.

Ask your banked friends what they think...

Much of the momentum building over recent months has been catalysed by the success of KimaDAO and the creation of DAOs with the purpose of building treasuries that can be directed through decentralised governance, to invest in carbon assets and Green Economy projects –from regenerative farming, to reforestation, clean energy, and funding public goods.  

We believe that ReFi is also about fundamentally regenerating communities, society, and the economy – from local to global, and we see ReFi beginning to expand into all sectors relevant to the 17 Global Sustainable Development Goals (SDGs).

Crypto-enabled regenerative finance, or ReFi, is emerging as a distributed, democratized system of value-creation around decarbonization, sustainable agriculture, biodiversity, ecosystem restoration and social justice, all tracked, measured, verified, enforced and settled on blockchain. – Impact Alpha

To see how quickly this new market category is gaining momentum, check out the Refi-DAO database where new initiatives are being added by the day!

But what real difference are these initiatives really making? What claims about the impacts of ReFi can be verified, and how much capital is actually being deployed into credible projects that can create positive outcomes?

The scale of financing socio-economic and ecological regeneration must move from Billions to Trillions, and this must be done in the right ways, to achieve sustainable impact that will shift the current trajectory of the world.

The Design Principles for going from Billions to Trillions (Ref)

Over the coming editions of the Earth State Briefing, we will further explore these questions and deepen our collective intelligence about what's really going on in ReFi and the Tokenised Earth Economy, to identify what opportunities this is creating. We plan to take deep-dives into themes such as:

  • ReFi for Nature
  • ReFi for Personal Finance
  • ReFi for Clean Energy
  • ReFi for Social Protection
  • ReFi for Health
  • ReFi for Sustainable Infrastructure
  • ReFi for Skills and Job Creation
  • ReFi for Climate Action and Climate Resilience
  • ReFi for Education
  • ReFi for Sustainable Capital Markets
  • ReFi and Good Governance
  • ReFi for Responsible Consumption and Production

ReFi is a call for action for us to all, to participate in transitioning the world from Degen to Regen.

Earth State Markets

Now let's look at the tokens and markets that are contributing to growth of the Tokenised Earth Economy.

State of the Markets

🔴 There's blood on the streets, and the bears love it. Tech stocks have been reporting their earnings, and it’s not looking great, with many Nasdaq stocks down 20-50% from their recent all-time highs, and unfortunately crypto falls into this category. Another interesting problem is that DeFi is creating handsome yields on stable coins, so investors are re-allocating their capital to these 'safer' protocols, which negatively affects investments in Alts.

📈 Demand is down, with BTC reserves in all exchanges still declining.

📈 Whale Accumulation continues, with BTC futures trades mostly coming from whales, and not retail traders.

😐 Market Sentiment has turned negative, with decreased investor interest, high leverage, and aggregated funding rates down.

😐 On-chain Indicators have not moved significantly over the past week.

📈Reference Markets over the past week

BTC

The OG of cryptos

-9.9%

$36,664

It’s a dark winter. Memories of 2018 are surfacing as that sharp slump in the world’s largest cryptocurrency is making people wonder if it’s happening again.

ETH

The king of Alts

-20%

$2397

Ethereum 2.0 is Dead… Well, kind of. The term is being retired, but ongoing work to scale the network will continue. 

ATOM

Interoperable Blockchain Chain

-26%

$28.89

Gravity Bridge is Live! The first iteration sends DAI, ETH and USDC over to Cosmos. Metamask and Keplr are now frens.

OSMO

Yield Farming on cosmos

-22.8%

$7.64

Working fast. An Osmosis Zone epoch was processed and reached consensus in under 8 minutes. And the data suggests that it could get to under 5 minutes.

CRO

Crypto.com 

-10.5%

$0.39

The recent hack that the company underwent has exposed shortcomings of the two-factor authentication system (2FA), as that’s how the fraudulent transactions were initiated.

KAVA

The DeFi chain of IBC

-23.5%

$3.15

ATOM surge is live, supply ATOM and earn over 50% APY.

JUNO

Smart-contracts on IBC

-14.2%

$16.39

The $JUNO / $XRPT pair is live on junoswapdex.

XPRT

Liquid Staking, synthetics and NFT’s

-25%%

$3.26

The $PSTAKE public sale on CoinList drew record demand with over 949,000 unique registrants - the highest of any CoinList sale to date. 20,000+ participants are now $PSTAKE token holders.

📊Impact Markets over the past week

REGEN

Ecological State Ledger

-28.7%

$1.12

Regen has released its roadmap – check it out here! 

IXO

Internet of Impact

-28.3%

$0.47

The ixo team has secured a further funding commitment from the Interchain Foundation, as core contributors to the foundation’s Earth Program.

SCRT

Private smart contracts

-27.5%

$5.58

Have you heard of the Secret Code Podcast

BCT

Toucan Protocol: Base Carbon Tonnes

-6.4%

$4.97

MAJOR MILESTONE: You can now purchase @ToucanProtocol base carbon ton tokens $BCT with a credit card through their mobile app iOS or android.

📉Impact DAO Shares over the past week

We are seeing the systemic impacts of bad actors. Just because it says decentralised and autonomous does not mean DAOs are immune from corruption, and there's important lessons to be learned as TIME – otherwise known as Wonderland – hit a major controversy. The community uncovered that Michael Patryn, co-founder of a notorious Canadian crypto exchange that defrauded investors of upward of $190 million, allegedly used the DAO treasury assets to prevent his personal liquidations as the crypto markets unravelled. This may have triggered a massive sell pressure to all rebase DAO’s, has threatened the peg of MIM, and also spread FUD to other algo coins, such as UST –which we know has already been under scrutiny.

ℹ️ Remember that DAO’s with a rebase mechanism should be valued on their treasuries, and market cap increases are a more important metric than token prices, as high yields try to outpace price fluctuations.

KLIMA DAO

Carbon Credits as its treasury

-37.8%

$50.06

Treasury:

14,766,101 TONNES CO2

KlimaDAO has enabled the use of AMMs within the Voluntary Carbon Market, positioning themselves as the liquidity engine for on-chain carbon. 

Olympus DAO

The largest DAO built on Ethereum

-39.9%

$62.85

Treasury:

$524,669,870


Olympus has no plans to stop it’s model even after the massive price drops. Check out the EconOHMy here.

TIME

AVAX DAO

-70%

$328

Treasury:

$686,039,134

$TIME was once at $10 000! Will TIME survive this week's big news. They do own a ton of assets so only TIME will tell.

VitaDAO


-33.9%

$1.88

Biotech DAO’s are exploding. See it here!

Ocean Protocol DAO

Ocean Protocol 

-28.1%

$0.54

Ocean has entered into a strategic collaboration with @dimitratech to unlock data for AI and business innovation amongst 100 million small farmers globally! 

Earth Fund DAO

1earth 

-48.5%

$0.07

Catch up on their Jan 19 AMA, with Alex Vergara. 

Popcorn DAO

-3.8%

$1.00

They’ve partnered up with @immunefi to launch a bug bounty program with rewards up to $150k! Read more here.

Token Analysis

Solana ($SOL) is a fast and energy-efficient blockchain that has made strong commitments to climate action, including through carbon offsets & removal of GHG. This week we also explore the innovation of Rebase Token protocols, which are the engine of KlimaDAO and a growing number of climate-focused DAOs.

$SOL - Technical Review
Solana ($SOL) is a fast and energy-efficient blockchain that has made strong commitments to climate action, including through carbon offsets & removal of GHG. This week we also explore Rebase Token protocols.

Market Opportunities

  • Earn & Stake: Juno staking rewards are at 120%, which is higher than the JUNO:OSMO pool and has no impermanent loss.
  • Offset: Mint a green NFT and offset carbon at Arkanauts.
  • Farm: Earn 100% on your IXO in the sifchain DEX.
  • Trade! Supply ATOM on KAVA and earn over 50% APY.

Earth NFT of the Week

Project Ark is a blockchain-powered conservation platform built in partnership between Carbonbase and leading international organisation World Wildlife Fund Panda Labs.

Project Ark hopes to revolutionize the traditional fundraising model for conservation efforts around the world.

Their "Purple Penguin" NFT's are purpose-driven that will help save the last 1% of African penguins from extinction by directing 30% of the minting revenue they generate to the organisation Saving Penguins.

Home | Saving Penguins

Earth State Technology

  • AI for Good now connects you, with intelligence. The AI for Good  Neural Network enables AI Innovators to more easily find and connect with Problem Owners, assisted by intelligent matching algorithms, and you get AI-powered personalised suggestions for content, virtual exhibitions and social networking.

Earth State Change

  • Gathering moss, to capture carbon with KlimaDAO. Moss aims to enhance the Carbon offsetting process with guarantees of traceability and transparency, using blockchain technology. KlimaDAO has begun accumulating Moss $MCO2 tokens into its treasury.
Moss x KlimaDAO: Saving the Amazon from Deforestation
How Moss is enabling KLIMA holders to help protect the Amazon, one project at a time.
  • Rehabilitating natural habitats at scale. Natural State plans to use the latest AI, remote sensing and cellular technologies to catalyze large-scale critical habitat restoration and rewilding, by working closely with local communities, industry, government and conservation leaders. Check out their flagship projects in Africa.
Investment in nature-based solutions has the potential to be the single largest funding source for large-scale restoration and rewilding.
About | Natural State
NATURAL STATE leverages technology to catalyze large-scale restoration and rewilding globally.

Earth States-Person

Raphaël Haupt is a founding member of Curve Labs and founder of the Toucan Protocol –an originator of KlimaDAO. He is passionate about building tools to address Climate Change, which he sees as the biggest coordination failure of our time. Based in Berlin, he qualified as an Energy Engineer and got hooked on DAOs in 2018.

CO2KEN
Raphaël talks about the power of DAOs and encourages us to think positively about the future state of the world.

Reflecting on the since his State of the World interview with Shaun Conway in August 2021, which was recorded shortly before the launch of KlimaDAO and its meteoric rise over just a couple of months, Raphaël reflects that “Ultimately, it’s the best thing that could have happened" by bringing attention to the potential of DeFi for Climate and sparking explosive growth in crypto initiatives for climate – even though this has drawn in speculators and bad actors. He's optimistic that this experience has demonstrated the need for further innovation, which is being responded to by a growing community of builders who are iterating on improvements.

Earth State Tweet of the Week

Earth News

Larry Fink says the next 1,000 unicorns will be green energy companies
In his carefully watched annual letter, BlackRock CEO Larry Fink said the potential for start-ups and investors in climate technology is unprecedented.
  • Bigger parks will not be enough for the world to stop and recover from the destruction of nature.
Expanding national parks not enough to protect nature, say scientists
‘Urgent’ coordinated action to tackle overconsumption, farming subsidies and the climate crisis also needed to halt biodiversity loss
  • World Bank is banking on a tokenised carbon marketplace by co-developing the standards for a ‘Climate Warehouse’ mechanism.
Can crypto create the world’s first authentic global carbon marketplace? | Greenbiz
The World Bank is teaming up with Bram Cohen’s San Francisco startup to prove that cryptocurrency can be part of the solution, not a problem, for climate change.

Earth State Actions

  • Recap what Ethan Buchman has to say about ReFi and the Internet of Blockchains, with this synopsis of his interview on DeFi Decoded.
Ethan Buchman’s vision for ReFi & the ‘Internet of Blockchains’
A synopsis of Ethan’s interview on DeFi Decoded, where he speaks about how Cosmos is creating an “Internet of Blockchains” and his vision for Regenerative Finance (ReFi)
  • Read about the potential for regenerative change at intersection of Web3 and carbon markets, from Regen Network.
Intersecting carbon markets and Web3 for regenerative change
Aiding in the fight against climate change, Web3 mechanisms are proving to be a strong contender for growing the carbon market.
Content Submissions
Contribute an article, news update, or briefing to the Earth State Newsletter and Members Briefing
Welcome to deCarbonized — a weekly carbon market newsletter
Demystifying carbon markets in crypto and beyond... a free weekly newsletter with insights on carbon removals, MRV, emerging trends and more.
  • View the 40 incredible project proposals that will be supported through the Regen Network 2022 Community Funding Program.
Congratulations to our Community Funding Program Awardees!
Learn about the 40 incredible projects we look forward to co-creating solutions with as a part of our 2022 Community Funding Program cohort
  • Hear what the Bankless crew have to say about what's moving in DeFi, including the OlympusDAO crash, OpenSea Dharma, and USDC vs Tether.

🌍 For the Earth!

The ReFi revolution is only just getting started! The way this is shaping up gives us cause for hope, and is creating opportunities for us all to get involved as stakeholders who can contribute towards creating positive Earth-State changes, and grow a Tokenised Earth Economy that is truly regenerative. You can help shape this narrative over the coming months, and we encourage you to join the conversation!

Join our weekly Twitter Space every Tuesday at 15:00 UTC, where we discuss what's moving in ReFi and the Tokenised Earth Economy. This week, our guest is Raphaël Haupt from Toucan Protocol, talking about Tokenised Carbon Markets.


Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. For tax advice talk to your accountant. Do your own research.