Connecting Eco Heroes To Capital Using Exponential Technology
At Lykke Corporation, a Swiss Fintech Company, there is an ethical use of the power of blockchain with the Lykke wallet tokenizing investment in nature. “On the Lykke Exchange, we have issued TREE as a digital token that represents a mangrove tree planted on 1 sqm in Thor Heyerdahl Climate Park in Myanmar managed by Worldview International Foundation (WIF). It enables anyone to act on climate and restore a vital ecosystem with the press of a button,” says Simran Mulchandani, Business Head, Lykke, India.
Mangroves are climate superheroes, and WIF estimates that each mangrove sequesters 1 tonne of CO2 in 20 years. Carbon credits are shared equally with local communities to make the trees worth more alive than dead. Each TREE coin is therefore collateralized by 500kg of carbon credits over 20 year (25kg per year).
“Through our networks we have already raised 1 million USD to plant a million trees this year. We are now targeting a billion mangroves to make a tangible impact on climate. Mangroves are are nature’s frontline climate change warriors, protecting local communities from flooding and soil erosion. Most importantly, mangroves are a keystone species that allow sea grasses and coral reefs to thrive, greatly boost fisheries. Through this revolutionary method, we are making investing in nature accessible - yes invest, not donate. All of this has been made possible by revolutionary blockchain technology and Lykke,” adds Mulchandani.
Lykke has specifically set up a Natural Capital Markets division to use its platform in a humane and transformative manner, to identify such opportunities around the globe, and is run by Alan Laubsch a highly regarded risk manager and financial markets practitioner. The idea is that natural capital is an attractive emerging asset class that diversifies portfolio returns while reducing climate risk.
Simran Mulchandani highlights a few important considerations in the blockchain technology:
Mangroves Are Climate Superheroes
July 26 was International Mangrove day. Mangroves are one of the world’s most vital ecosystems, and play a crucial role in mitigating climate change. Oceans are responsible for 83% of global carbon sequestration, mostly concentrated along shorelines where mangroves are a keystone species. When mangroves are destroyed, an entire ecosystem collapses, releasing CO2 and methane.
Mangroves are Biodiversity Nurseries
Miracles of life, mangroves grow between land and sea and provide a biodiversity nursery for marine and terrestrial species. Many coral reef fish rely on mangroves during certain stages of their lives. Mangroves also filter runoff which allows sea grasses and coral reefs to thrive, as sedimentation smothers corals and causes them to die. These flowering trees give abundant food, medicine and shelter to coastal communities in over 100 countries.
Mangroves can even turn deserts into oases
Despite their vital importance, mangroves have been deforested at three times the rate of rainforests, mainly for charcoal production, shrimp farming, and development. Making up less than 1% of forests globally, mangroves are now at risk of extinction.
But we can change things. Here’s how:
The International NGO Worldview International Foundation (WIF) has been pioneering mangrove restoration since 2012.
Blockchain company Lykke has partnered with WIF to launch the world’s first mangrove backed cryptocurrency. Heyerdahl Climate Pioneers (TREE) is a digital token representing a mangrove planted on 1 sqm in Thor Heyerdahl Climate Park in Myanmar, managed by WIF.
TREE empowers anyone to invest in the restoration of mangroves with the press of a button. Just activate a Lykke Wallet on your mobile phone (iOS & Android). Lykke reserves 10% of funds raised as a liquidity buffer, which turns TREE into a stable cryptocurrency that can be traded 24/7 or converted to FIAT currency, and sent to anyone without fees. TREE will also be accepted as a means of payment by pioneering partners, including Starboard, Misool Eco Resort, and The Wonderfruit Festival.
According to WIF founder Dr. Arne Fjortoft, “The urgent need to restore at least 20% of the world’s mangrove forests was among the key issues of the June 2016 United Nations Ocean Conference. Mangroves are nature’s most promising solution to combatting impacts of sea level rise, and maintaining healthy shorelines and water quality for coral reefs and sea grass, as well as other valuable ecosystem services.”
Invest In A Mangrove
Anyone can be Climate Positive by investing in mangroves. Each mangrove sequesters up to 1 tonne of CO2 in 20 years, and has community and biodiversity co-benefits of over 1000x, meaning that for every $1 spent on mangroves, the world receives over $1000 in benefits. At present Lykke has sold close to 1 million TREE Tokens, raising one million USD in the process enabling the planting of one million trees. Our next target is one billion mangroves around the globe. At the closing of the recent Protect Blue event at the Green Surf Festival in Noli, legendary big wave champion Chris Bertish announced his “Revive 365” pledge to invest in a mangrove every day for three years to be Climate Positive For Life. “A forest is 120 trees, which means we plant 3 forests a year for three years to mitigate a lifetime of carbon emissions,” explains Chris.
