Output Rights

Subtype

Definition: In return for staking or holding the token, the user receives access to Output Rights, which may be material outputs (e.g. coffee from food forests), financial outputs (e.g. carbon offsets from food forests), or revenues derived from the outputs of a designated natural asset (e.g. rental from a property).

Description

The concept of output rights diverges fundamentally from traditional notions of ownership, as it exclusively pertains to the entitlement to access and benefit of its outputs.

These types of leases are not alien to the world of traditional finance; profit-à-prendre contracts enable “a person to take part of the soil or produce of land that someone else owns … as in the mining of minerals”. However, with Web3, we deal with innovative crypto-asset utilities, such as staking to earn output rights, a concept with no traditional financial equivalent. Notably, the character of output rights assets assumes a green character when the source of the outputs in question stem from regenerative natural resources.

Example

Glow is a climate project with a goal of replacing all grid electricity with clean energy.

When staked, Glow Tokens (GLW) renders solar farms eligible to receive rewards for their production of Glow Carbon Credits, a counterfactual offset representing “one ton of CO2 that was not emitted into the atmosphere” due to sustainable solar energy production.

What is Glow?