Problem Statement
What problems is Regen Atlas solving?
Last updated
What problems is Regen Atlas solving?
Last updated
This page is under construction.
Addressing the climate crisis requires substantial financial resources, far beyond what is currently available. The funding gap within climate finance remains significant, posing a challenge for achieving global climate goals.
While the concept of green crypto might appear unconventional to traditional environmental and ecological economists, we believe it holds promise as a viable solution. We argue that green crypto is a critical tool for bridging the climate finance gap for three key reasons:
Green crypto introduces a system where trust is decentralized, reducing reliance on centralized third parties. This trust minimization enhances efficiency and fluidity in financial transactions. For example, green bonds could automatically forgive debt based on ecological performance indicators, utilizing ecological oracles to ensure accountability.
Unlike traditional climate finance, which is often conducted over-the-counter and characterized by opacity and high entry barriers, green crypto operates within ultra-scalable, continuous global markets. This allows for more transparent and accessible climate finance that can coordinate efforts at a planetary scale, overcoming the limitations of national green markets.
The open-source nature of green crypto fosters interoperability and democratization. We believe that a just climate transition is unattainable if corporations create restrictive, proprietary systems. Green crypto’s open framework encourages broader participation and collaboration, essential for global climate efforts.
Despite its potential, green crypto faces significant challenges in scaling. As of May 2024, the market capitalization of green tokens was approximately $300 million, a stark contrast to other crypto categories such as stablecoins, memecoins, or AI tokens, which boast market caps in the billions to hundreds of billions. This disparity highlights the need for greater investment and development within the green crypto sector to fully realize its potential in addressing the climate crisis.
Why isn't Green Crypto scaling?
The question of why green crypto has not yet experienced widespread adoption is one that we at Regen Atlas have grappled with extensively. Through our analysis, we have identified three key factors contributing to this scalability challenge:
Green crypto consists of
High discovery costs due to missing requirements.
Today, institutional buyers need liquid to enter the market.
