{"id":23022,"date":"2022-07-16T12:13:14","date_gmt":"2022-07-16T12:13:14","guid":{"rendered":"http:\/\/egrowonline.com\/?p=23022"},"modified":"2022-07-16T12:13:14","modified_gmt":"2022-07-16T12:13:14","slug":"cryptocurrency-is-not-just-affecting-markets-regulators-need-to-crack-down-on-its-pollution","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=23022","title":{"rendered":"Cryptocurrency is not just affecting markets. Regulators need to crack down on its pollution"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"wef-1wd3kvl\">\n<ul class=\"wef-1h9w1zb\" role=\"list\">\n<li class=\"wef-1dgqngq\">\n<p>The exponential growth of cryptocurrencies has come at the expense of the environment.<\/p>\n<\/li>\n<li class=\"wef-1dgqngq\">\n<p>A carbon-backed, algorithmic currency aims to change that by driving climate action.<\/p>\n<\/li>\n<li class=\"wef-1dgqngq\">\n<p>The responsible development and regulation of digital assets will be crucial for a green economy.<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>Over the last decade, cryptocurrency has exploded in growth, onboarding around\u00a0<a target=\"_blank\" href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__blog.crypto.com_global-2Dcrypto-2Downers-2Dnear-2D300-2Dmillion-2Dpredicted-2Dto-2Dhit-2D1-2Dbillion-2Dby-2Dthe-2Dend-2Dof-2D2022_&amp;d=DwMFaQ&amp;c=VWART3hH1Kkv_uOe9JqhCg&amp;r=e53Pu0sOy_9fx4DPA6fWh8jqNsF1XG0ue9tHNpUr2P4&amp;m=uosKBnfJQzlMwEYASsvinQu-SCoaO_MzgaA5g3XZapRVBSnRQbfxfwg8qoaCDBbU&amp;s=fH6csb2xQRHWToG53Sma2zbXJAJkCYdjMf9J5agXlBg&amp;e=\" rel=\"noopener\">300 million new users<\/a>. This exponential growth has been accompanied by serious environmental side effects stemming from energy intensive activities such as Bitcoin mining \u2013 which by some estimates, consumes as much electricity as a small country each year \u2013 and transacting on proof-of-work networks, including Ethereum. Of course, outside of crypto, many activities we engage in every day, such as transacting within the\u00a0<a target=\"_blank\" href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__cointelegraph.com_news_banking-2Dsystem-2Dconsumes-2Dtwo-2Dtimes-2Dmore-2Denergy-2Dthan-2Dbitcoin-2Dresearch&amp;d=DwMFaQ&amp;c=VWART3hH1Kkv_uOe9JqhCg&amp;r=e53Pu0sOy_9fx4DPA6fWh8jqNsF1XG0ue9tHNpUr2P4&amp;m=uosKBnfJQzlMwEYASsvinQu-SCoaO_MzgaA5g3XZapRVBSnRQbfxfwg8qoaCDBbU&amp;s=hN2g3umAeGMGoBcHNGiEtSgyeuGFFQbqoZT2ggIk690&amp;e=\" rel=\"noopener\">traditional financial system<\/a>, all have a carbon footprint, reminding us that carbon dioxide knows no borders.<\/p>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>For our community, we should not just point out the discrepancies in attention and outrage directed at cryptocurrency energy consumption \u2013 for context, Bitcoin uses 62 terawatt hours of energy each year, while household tumble dryers are responsible for 108 TWh in the United States alone \u2013 we also need to highlight the utility that blockchain protocols are providing.<\/p>\n<\/div>\n<p><h2 class=\"chakra-heading wef-8zlox7\">Cryptocurrency that offsets carbon<\/h2>\n<\/p>\n<div class=\"wef-ehvb1g\">\n<p>At\u00a0<a target=\"_blank\" href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=http-3A__www.klimadao.finance&amp;d=DwMFaQ&amp;c=VWART3hH1Kkv_uOe9JqhCg&amp;r=e53Pu0sOy_9fx4DPA6fWh8jqNsF1XG0ue9tHNpUr2P4&amp;m=uosKBnfJQzlMwEYASsvinQu-SCoaO_MzgaA5g3XZapRVBSnRQbfxfwg8qoaCDBbU&amp;s=02VHSI3N-iiyDpH8i3sJXl0S6mMxY9T53g_YcR6a8Kw&amp;e=\" rel=\"noopener\">KlimaDAO<\/a>, for example, we are aligning economic incentives for a green regenerative economy, making on-chain carbon retirement accessible to all. KlimaDAO\u2019s native token \u201cKLIMA\u201d can only be minted when tokenized carbon credits are locked away in its treasury. This is achieved by offering incentives to users to exchange tokenized carbon in return for KLIMA at a discounted price. The KLIMA token is itself backed by carbon. As the KlimaDAO treasury acquires more carbon over time through its incentives, any newly minted KLIMA tokens are distributed to those who hold KLIMA themselves.<\/p>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>Anyone can acquire KLIMA or through the open, transparent, and fairly priced markets that are hosted on Decentralized Finance (DeFi) exchanges such as SushiSwap. This means for the first time, anyone can participate in the carbon economy without needing to use a third party broker to source, or offset, carbon. In the current voluntary carbon market (VCM), it takes several months for an organization to source carbon credits, work with a brokerage, and retire those credits \u2013 often in over-the-counter exchanges that occur in private and result in price opacity and market inefficiency.<\/p>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>However, KlimaDAO\u2019s retirement aggregator tool, part of the\u00a0<a target=\"_blank\" href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__www.klimadao.finance_blog_klima-2Dinfinity-2Dto-2Dcarbon-2Dneutral-2Dand-2Dbeyond&amp;d=DwMFaQ&amp;c=VWART3hH1Kkv_uOe9JqhCg&amp;r=e53Pu0sOy_9fx4DPA6fWh8jqNsF1XG0ue9tHNpUr2P4&amp;m=uosKBnfJQzlMwEYASsvinQu-SCoaO_MzgaA5g3XZapRVBSnRQbfxfwg8qoaCDBbU&amp;s=xZU4-nJ6hufG0Hr9GWZPS83oTIzB8YnGvN0JWxRk70E&amp;e=\" rel=\"noopener\">Klima Infinity<\/a>\u00a0suite, allows any individual or institution to select their preferred carbon credit, choose the number of credits to match specific offsetting needs, and then retire them \u2013 all on-chain, recorded on a public ledger on the blockchain, and in a matter of minutes. Founded in October 2021, KlimaDAO has already brought over $100 million worth of VCM liquidity on chain. In addition to allowing anyone, anywhere to purchase a desired number of credits and retire them, KLIMA holders can also personalize a\u00a0<a target=\"_blank\" href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__www.loveletter.klimadao.finance_&amp;d=DwMFaQ&amp;c=VWART3hH1Kkv_uOe9JqhCg&amp;r=e53Pu0sOy_9fx4DPA6fWh8jqNsF1XG0ue9tHNpUr2P4&amp;m=uosKBnfJQzlMwEYASsvinQu-SCoaO_MzgaA5g3XZapRVBSnRQbfxfwg8qoaCDBbU&amp;s=QI4H3qrF5xNiflY7cIAEQ8W-GlFUuDK9MUYSJ61MqTg&amp;e=\" rel=\"noopener\">love letter<\/a>\u00a0to the planet to commemorate their climate-positive actions.<\/p>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>Looking under the hood, KLIMA is backed by a variety of different carbon assets that are held in KlimaDAO\u2019s treasury, including Moss\u2019s MCO2 and Toucan Protocol\u2019s BCT. The KLIMA token itself is instrumental for the Klimaconomy; it doesn\u2019t just act as an incentive for users to lock carbon in the DAO\u2019s treasury, it also acts as a \u201ctrading pair\u201d within the DeFi markets. This means that KLIMA is used to facilitate market trades across different types of tokenized carbon assets.<\/p>\n<\/div>\n<div class=\"wef-ehvb1g\">\n<p>By using KLIMA as the dominant trading pair for transacting carbon, and with KlimaDAO responsible for providing the liquidity in these markets, we are now seeing an efficient, liquid and transparent market for carbon emerge. As users transact, trade, and offset carbon assets at market prices, the utility of KLIMA scales. Through the growth of diversified carbon assets, KlimaDAO intends to create the best experience to source and retire carbon assets.<\/p>\n<\/div>\n<p><h2 class=\"chakra-heading wef-8zlox7\">How will regulation change the industry?<\/h2>\n<\/p>\n<div class=\"wef-ehvb1g\">\n<p>Regulation has long been a hot topic in crypto. However, President Biden\u2019s\u00a0<a target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2022\/03\/09\/executive-order-on-ensuring-responsible-development-of-digital-assets\/\" rel=\"noopener\">recent Executive Order<\/a>\u00a0calling for the responsible development and regulation of digital assets, specifically refers to exploratory efforts to investigate the environmental benefits of distributed technologies. This landmark Executive Order shows that governments are beginning to recognize that the debate around cryptocurrency and the environment should not focus just on energy consumption, but on positive projects like KlimaDAO that are bringing much needed transparency and liquidity to carbon markets.<\/p>\n<\/div>\n<p><!-- AI CONTENT END 1 -->\n<\/div>\n<p>!function(f,b,e,v,n,t,s)<\/p>\n<p>{if(f.fbq)return;n=f.fbq=function(){n.callMethod?<\/p>\n<p>n.callMethod.apply(n,arguments):n.queue.push(arguments)};<\/p>\n<p>if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=&#8217;2.0&#8242;;<\/p>\n<p>n.queue=[];t=b.createElement(e);t.async=!0;<\/p>\n<p>t.src=v;s=b.getElementsByTagName(e)[0];<\/p>\n<p>s.parentNode.insertBefore(t,s)}(window,document,&#8217;script&#8217;,<\/p>\n<p>&#8216;https:\/\/connect.facebook.net\/en_US\/fbevents.js&#8217;);<\/p>\n<p>fbq(&#8216;init&#8217;, &#8216;1985006141711121&#8217;); <\/p>\n<p>fbq(&#8216;track&#8217;, &#8216;PageView&#8217;);<\/p>\n<p>   window.fbAsyncInit = function() {<br \/>\n    FB.init({<br \/>\n      appId      : &#8216;885510301622193&#8217;,<br \/>\n      cookie     : true,<br \/>\n      xfbml      : true,<br \/>\n      version    : &#8216;v2.12&#8217;<br \/>\n    });<\/p>\n<p>    FB.AppEvents.logPageView(); 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!b.hasClass(&#8220;td-link-element-after&#8221;) || &#8220;#&#8221; !== b.attr(&#8220;href&#8221;) &amp;&amp; void 0 !== b.attr(&#8220;href&#8221;) || (a.preventDefault(), a.stopPropagation(), jQuery(this).toggleClass(&#8220;td-sub-menu-open&#8221;))<\/p>\n<p>});<br \/>\n});<\/p>\n<p>$(document).ready(function () {<br \/>\n    size_li = $(&#8220;#myList .timeline_post&#8221;).length;<br \/>\n    x=5;<br \/>\n    $(&#8216;#myList div.timeline_post:lt(&#8216;+x+&#8217;)&#8217;).show();<br \/>\n    $(&#8216;#loadMore&#8217;).click(function () {<br \/>\n        x= (x+10 &lt;= size_li) ? x+10 : size_li;<br \/>\n        $(&#039;#myList div.timeline_post:lt(&#039;+x+&#039;)&#039;).show(1000);<br \/>\n    });<br \/>\n    $(&#039;#showLess&#039;).click(function () {<br \/>\n        x=(x-10&lt;0) ? 3 : x-10;<br \/>\n        $(&#039;#myList .timeline_post&#039;).not(&#039;:lt(&#039;+x+&#039;)&#039;).hide(1000);<br \/>\n    });<br \/>\n});<\/p>\n<p>function rederSurvey() {<br \/>\n  document.getElementById(&quot;mySidepanel&quot;).style.width = &quot;250px&quot;;<br \/>\n}<\/p>\n<p>function closeSurvey() {<br \/>\n  document.getElementById(&quot;mySidepanel&quot;).style.width = &quot;0&quot;;<br \/>\n}<br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/theprint.in\/india\/cryptocurrency-is-not-just-affecting-markets-regulators-need-to-crack-down-on-its-pollution\/1041706\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The exponential growth of cryptocurrencies has come at the expense of the environment. A carbon-backed, algorithmic currency aims to change that by driving climate action. The responsible development and regulation of digital assets will be crucial for a green economy. Over the last decade, cryptocurrency has exploded in growth, onboarding around\u00a0300 million new users. This [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[36],"tags":[9799,4929,52,89,9800,1054],"class_list":["post-23022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-affecting","tag-crack","tag-cryptocurrency","tag-markets","tag-pollution","tag-regulators"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/07\/323823819_1-3-e1536989049610.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23022"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23022\/revisions"}],"predecessor-version":[{"id":23024,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23022\/revisions\/23024"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/23023"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23022"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}