Innovate new models...
One of my favourite projects I’ve come across is Earth Dollar...
They’re still building their foundations and not sure how it’ll go, but the concept is fucking brilliant - utilize the Natural Capital Accounting Protocol and back with crypto to essentially incentivize the protection of the environment, monetize different kinds of natural capital and Human Resources, placing value on these factors and rewarding them with an alternative currency.
Check it out - it’s a fine example of how the answer to your questions may play out...
For sure! I have seen the Earth Dollar. I love the idea behind it! I hope it takes off. But, I'm a bit concerned with the utility. (yes the backing mechanism seems sound, I'm super in favor of incentivizing the regeneration of our planet). However, I couldn't understand why people would need, or prefer to use, Earth Dollars opposed to the plethora of other currencies (aside from moral positions).
I love the position, but I'm just not sure it's the way to go.
Unless I'm missing something huge...
But, I'm supporting them none-the-less :)
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If you were to receive Earth Dollars as either a basic income or kickback for using technologies that reduced environmental pollution, and could spend it anywhere on a visa/debit card as you do fiat, why not?
Or, from an investment standpoint: Whereas nearly all other tokens’ price may be based on speculation, Earth Dollar’s is more asset-backed - meaning, should the project really take off and the network grown to bring increasing amounts of natural capital into their accounting system, there is very tangible value backing it - and the limits of value increase being only the amount of natural capital value accounted. Should there be some big players or key pieces come into play/place, the upside could be huge... ;-)
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Thank you for bringing this up. I went back to their site to check them out again!
I really like the idea.
But, I don't know if "backing" is the correct term here.
(from their site)
They are getting valuations on forests that are put into trusts that can never actually be sold.
So, when my dollar was backed by gold. I could get gold. I can't get 1/1000000 of the land if I own equal percentage of earth dollars...
With that said, the people rewarded here are not the currency users but those stewarding lands (which is a beautiful concept). But, why would regular people use this over a currency that would reward them for using it. Or, say give them a bit of the new inflation for being loyal to the platform, etc.
It would be really radical if they secure these partnerships with banks that allow it to be spent so easily. But, then people are just wanting fiat not Earth Dollars.
My main question here. Is in order for a currency to have and maintain relative value the demand and supply for that currency need to be in balance.
My real concern here, is where is the REAL demand for Earth Dollars? There are so many cryptos such as PoS and others on the horizon which will share the inflation with those who hold the currency. So, it would be a much wiser economic decision to have a currency that you are economically rewarded for holding.
I think if they could figure this aspect out. It would be really radical, but just saying the value of the natural capital has increased, though there is actually no way of redeeming this value, is a false notion.
This may be the leverage they need to get banks backing. But, I fear that these lands may end up in the hands of banks, if they don't sort out the demand side of this equation.
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