Regenerative Finance (ReFi): Crypto for the climate?

Save the environment and earn money at the same time? In the meantime, this is not just the dream of a few investors. Large corporations or asset managers such as Blackrock are also fully committed to the ESG trend. And if you look closely, you will see that there is hardly any other technology that is better suited to saving our environment from climate catastrophe than blockchain technology.

This is exactly where more and more crypto start-ups are trying to start with the help of the token economy. One of them is Menthol Protocolwhich offers a blockchain solution specifically for the use case of sustainability and climate neutrality.

In an interview, we asked co-founder Amir Awan about the lack of transparency in the ESG sector, the innovation of the blockchain in the tokenization area and the new concept of regenerative finance (ReFi). You can find the full interview on the BTC-ECHO Experts Podcast.

BTC-ECHO: What technical options are there to eliminate the lack of transparency in CO₂ certificates?

Amir Awan: “In addition to blockchain technology, there is also big data, machine learning or AI. We also specifically work with partners who help to monitor the carbon credits of, for example, conservation projects to ultimately determine if the carbon impact being sold really exists.”

BTC-ECHO: Regardless of the existing market: What is new with tokens or the blockchain to build up in the portfolio?

avan: “One of the founding ideas behind Menthol Protocol was to make these certificates more easily available. On the conventional market, the purchase of such a certificate can take several weeks, for example due to quality checks and know-your-customer procedures. We want to make it easier for investors to obtain such certificates. Now, through crypto, you can buy such a token on Uniswap, for example, which has the same standards as such a certificate.”

BTC ECHO: What is the term regenerative finance all about? (actually?

avan: “First there is the concept of regeneration. This can be understood on a social dimension by doing something good for the environment. Then there is the ecological dimension: this is the aspect of the profit that we get from the earth without paying for it. Finally, there is the financial dimension. The basic idea of ​​a company is to generate money – and that for an infinitely long time. The concept of regenerative finance is then based on both points. So it’s about a different strategy or a different ethical view of the financial sector.”