The Goddess Nature Token (GNT) is an exciting token. ReFi space
So, what is GNT?
GNT is an asset-backed token, which means it derives its value from an underlying real-world asset. In this case, that asset is a bundle of carbon credits from the voluntary carbon market.
Now I will try to explain why this token has value and why they cannot be infinite.
Value
In the carbon market, as in any market, there is supply and demand. The higher the demand, the higher the price of the credit and, accordingly, the higher the price and value of the GNT token and vice versa.
Amount of tokens
First I will explain what carbon credit is. Carbon credit is a reduction or removal of one metric ton of carbon dioxide equivalent from the atmosphere.
For example: If you have a factory or a business that produces carbon dioxide into the atmosphere, you have to pay a fee proportional to the amount of carbon dioxide released.
The amount of GNT is determined by the number of existing off-chain carbon credits that meet the GNT criteria and are added to the GNT smart contract. The number of allowable carbon dioxide emissions are regulated and recorded by various specialized organizations (like Verra, Gold Standard and so on) in special registries. And even if credits are taken from other trusted registers, the number of credits is limited, which means that the amount of GNT token will be limited and cannot be an infinite number.
What is the peculiarity of the GNT token? What problems does it solve and why is it so good?
First, the GNT token provides transparency to all participants in the voluntary market, as any transaction will be recorded in the blockchain. The higher the transparency — the higher the trust — the growth in customers — the growth in the cost of credit — a cleaner planet.
Secondly, the GNT token provides the missing liquidity in the carbon market. To meet the challenge of multiplying multiple tokens, Flowcarbon is taking a factory pattern approach to smart contract development. Unification will simplify the interaction between customers and the platform.
Third, the GNT token gives instant insight into carbon credit prices and confidence that those prices can be trusted. Blockchain and free market technology allows the user to buy and sell tokens at the most relevant price.
Important note: In order to redeem GCO2 or bundle tokens, the redeemer must be a permissoned GCO2 holder that has passed Flowcarbon’s KYC process.
General state of ReFi and carbon market
Let’s talk about why carbon markets are especially important and how the ReFi sector is doing.
The fragmentation of the carbon credit market has led to a legacy system whereby most companies and governments are forced to purchase credits through complicated broker agreements or direct partnerships with project developers rather than through an open marketplace.
With the explosion of industry, the development of cars, factories and plants, carbon emissions are increasing every year. Large corporations are not spending enough to filter their emissions and the environmental problem is worsening day by day.
EU carbon permits rose as much to 94.62 euros a ton in February 2022 and continue to rise.
Now let’s look at a global chart of CO2 emissions
Since the beginning of the industrial era (1750), human activities have raised atmospheric concentrations of CO2 by about 50%. This is more than what had happened naturally over a 20,000 year period (from the Last Glacial Maximum to 1750, from 185 ppm to 278 ppm).
There are several problems in the ReFi markets, such as low liquidity, non-transparent commissions, and the lack of a single platform where carbon credits are placed. In addition, the number of emissions is only growing from year to year, and there are not enough quality instruments.
Clearly, there are unresolved problems in the ReFi space and our planet needs to be solved. The funds generated from the sale of credits can be invested in projects that produce green energy.
The Taihang solar farm in China is built right into the local mountains and reduces 251,000 metric tons of carbon dioxide emissions every year.
The high cost of carbon credits will encourage companies to avoid unnecessary CO2 emissions and will motivate people to develop green energy sources.
Conclusion
If carbon markets become more efficient, there will be fewer environmental problems. The Flowcarbon project faces tough challenges, but I strongly believe that ReFi will become more efficient and popular thanks to this team, and the GNT token will take its rightful place in the carbon credit market.
