►
From YouTube: The ReFi Stack - Phil Fogel - Selva (Track 2)
Description
Describing the regenerative finance (ReFi) ecosystem of integration between various web3 companies and how Flowcarbon works with companies including but not limited to Celo, Senken, Menthol Protocol, Open Forest Protocol, etc. Furthermore, how this is a genuine use case for web3 in onboarding a digitally native real world asset (carbon credits) on-chain to improve the existing voluntary carbon markets (VCM) both in terms of liquidity, transparency, as well as financing.
- Sustainable Blockchain Summit LATAM 2022 - https://sbs.tech/
A
A
Presentation
off
with
this,
because
what
we're
talking
about
is
the
voluntary
carbon
market
and
when
talking
about
the
voluntary
carbon
Market,
one
of
the
biggest
questions
that
everyone
asks
is:
is
it
actually
voluntary?
And
so
the
voluntary
market
rate?
Is
this
something
that
we're
building
all
this
infrastructure
for
that's
eventually
just
going
to
go
away
as
corporations
decide
that
they
don't
need
to
hit
Net
Zero
anymore?
A
And
so,
if
you
look
at
where
the
voluntary
carbon
Market
gets
as
legitimacy
from
and
where
it
actually
is
stemming
from
a
lot
of
that
comes
from
investor
pressure
and
Larry
Fink,
which
is
the
CEO
of
BlackRock.
Has
this
great
quote
basically
saying
that
every
company
in
every
industry
needs
to
be
transformed
into
a
net
zero
world?
A
And
do
you
want
to
be
a
leader
in
that
or
not
and
so
you're
sort
of
seeing
the
opportunity
now
for
corporates
and
people
in
refi
to
be
a
leader
in
offsetting
and
in
fact,
the
biggest
opportunity
that
we
have
as
an
industry
web3
in
general,
is
to
actually
be
the
leader
in
sustainability
and
offsetting
and
to
actually
be
the
first
industry
to
be
entirely
climate.
Positive,
obviously,
with
the
recent
merge
from
ethereum
improved
stake,
you
now
see
the
footprint
of
the
crypto
industry.
A
You
know
diminish
dramatically
and
that's
going
to
continue
as
more
and
more
projects
build
offsetting
directly
into
their
projects.
You
saw
a
presentation
earlier
with
clima,
where
they're
talking
about
directly
how
Sushi
swap
now
you
can
automatically
offset
things
immediately
as
you
do
it,
and
so
that
stacked
those
Innovative
use
cases
and
those
ways
for
carbon
credits
to
grow
and
be
used
on
chain
is
going
to
continue.
A
So
we
all
sort
of
know
that
the-
and
this
is
probably
probably
the
third
or
fourth
person
today-
to
put
up
a
stat
that
looks
like
this
talking
about
the
size
of
the
market
and
how
big
this
Market's
going
to
get
the
voluntary
carb
Market
is
getting
bigger.
It's
already
sort
of
doubled
and
tripled
in
size
in
the
last
few
years
and
is
continuing
to
grow
and
get
bigger
sort
of
every
year,
and
there
are
different
studies
that
have
come
out
with
how
big
that
Market's
going
to
get.
A
But
basically,
if
you
look
at
the
size
of
the
overall
Market
over
the
course
of
the
next
several
decades,
you're
talking
about
trillions
and
trillions
of
dollars
in
funding
that
needs
to
be
directed
into
projects
that
are
removing
or
storing
carbon
and
that
Capital
has
to
come
from
somewhere
and
one
of
the
best
ways
that
we
have
right
now
to
do.
That
is
the
voluntary
carbon
Market,
where
we
sell
carbon
credits
to
corporations
who
use
them
to
offset
their
emissions
as
well
as
individuals
who
can
offset
their
emissions.
A
So
the
market
itself
is
incredibly
inefficient.
There's
a
lack
of
liquidity,
there's
a
lack
of
transparency,
there's
tons
of
middlemen
who
are
value
extractive
along
the
way.
The
sales
cycles
for
corporate
is
very
difficult.
I've
heard
a
couple
presentations
where
people
have
dove
into
these
today,
so
I
won't
spend
too
much
time
on
that,
but
it's
a
market
that
is
also
closed
off
to
retail
buyers,
primarily
and
it's
difficult
to
secure
financing
in
this
market
today,
because
of
all
of
these
inefficiencies
that
exist
in
the
market.
A
The
first
is
building
spot
Market
infrastructure
taking
existing
carbon
credits
that
currently
today
live
in
SQL
databases,
bringing
them
on
chain
where
they
can
be
transparently
traded,
and
you
can
have
real
price
Discovery
for
the
first
time,
we're
doing
that
by
building
a
two-way
bridging
mechanism
and
I'm,
creating
all
of
that
on
and
off
chain
infrastructure
to
allow
that
market
to
develop.
On-Chain
we're
also
active
in
the
forward
market
and
we're
building
Structured
Products.
Because
again,
if
we're
going
to
see
trillions
of
dollars
transact
in
this
market,
they
have
to
be
financialized
dollars.
A
They
have
to
come
in
the
form
of
Structured
Products
and
in
the
language
that
the
financial
markets
understand,
and
so
that's
the
other
piece
of
it
that
we're
building
and
then
the
third
one
is.
How
do
we
get
all
the
current
users
of
carbon
credits
that
come
and
do
this
on
chain
we're
building
out
a
corporate
sales
team
that
actually
goes
out
and
meets
customers
meets
corporates
today,
where
they
are
with
the
intention
of
moving
them
on
chain
in
the
future.
A
As
the
mark
Market
develops
in
the
on-chain
infrastructure,
gets
built
out
and
becomes
the
primary
trading
venue
for
carbon
credits,
so
web3
really
does
excel
at
solving
coordination
problems.
Climate
change
is
a
massive
coordination
problem
and
one
of
them,
as
I
said
you
know
you
across
the
value
chain.
Even
people
who
are
technically
competitors
in
this
space
are
all
working
together
to
build
an
entire
value
chain
out
that
solves
a
real
world
problem
and
does
it
using
web3
technology
in
the
backbone.
A
So
this
is
to
us
what
the
web3
stack
essentially
looks
like
when
you
build
the
whole
thing
out.
You
have
to
start
with
project
origination
projects
need
to
start
somewhere
somewhere
has
to
go
on
the
ground
and
say:
okay,
here's
an
opportunity
for
us
to
remove
carbon
using
nature-based
Solutions
using
text
Solutions
using
whatever
Solutions
there
might
be.
The
second
step
is
financing.
Those
projects
have
to
get
money
in
order
to
be
done.
The
third
step
is
actually
certifying
and
monitoring,
reporting
and
verification
of
those
projects.
A
This
is
probably
the
hardest
piece
of
the
puzzle
and
the
part
that
is
actually
so
ripe
for
blockchain
technology,
because
it's
the
end
of
the
day.
What
is
a
carbon
credit?
It's
literally
a
series
of
data
that
we've
now
stored
in
the
database
and
said
this
is
a
credit.
It's
basically
backed
up
by
a
long
string
of
data.
That's
a
really
good
application.
A
Obviously,
for
blockchain
last,
you
will
need
to
have
an
accessible
Market
where
these
things
can
trade
and
then,
once
you
have
that
accessible
market
and
you've
built
out
sort
of
these
money
Legos
in
the
form
of
carbon
credits,
you
can
build
out
a
ton
of
innovative
use
cases
where
people
can
do
things
with
carbon
credits
that
previously
were
unable
to
done
before.
Just
to
highlight
a
few
of
these
and
then
I'll
jump
into
going
into
each
one
of
these
ports
of
the
value
chain.
A
You
have
companies
like
C
charge
which
are
going
to
use
carbon
credits
as
rewards.
You
have
nft
platforms
that
are
going
to
offset
in
the
background
offset
in
the
background
and
sell
and
if
keys,
they
basically
solve
offsetting
problems
for
corporates
and
individuals.
You
have
wallets
like
fly
wallet,
that's
just
going
to
offset
and
allow
that
transactions
in
the
background,
similar
to
what
Sushi
swap
is
doing
and
fly
wallet,
as
well
as
offsetting
flights
immediately
using
unchain
carbon.
A
So,
let's
first
go
into
origination
origination
I'm,
going
to
split
this
into
two
categories:
one
is
the
traditional
project
developers.
These
are
the
people
who
have
been
developing
carbon
projects
for
years
in
an
off-chain
context
and
then
on
chain
development,
so
Alcott,
for
example,
flow
carbon
recently
announced
a
partnership
with
them
as
another
couple
other
web
3
companies
Alcott
is
a
traditional
project.
A
Developer,
that's
been
around
for
decades,
they're
looking
to
web3
to
move
the
entire
value
chain
for
creating
carbon
credits
on
chain
and
are
looking
to
do
the
first
we're
doing
a
pilot
project
with
them
where
the
entire
project
is
going
to
be
built
on
chain.
You
then
have
things
like
green
trade
and
Ivy
who
are
doing
web
3.
First
project
development,
they're
going
out
sourcing
projects,
saying
we're
going
to
help
you
find
funding
we're
going
to
help
you
find
that
funding
in
a
web
3
context.
A
A
We
said:
okay,
let's
actually
take
those
forward
contracts
which
are
a
common
tool
in
the
OTC
market,
where
people
trade,
these
credits
and
let's
make
them
more
available
to
investors
in
a
format
if
they
understand,
and
so
what
we
did
was
we
partnered
with
a
protocol
called
centrifuge
centrifuge,
basically
uses
cash
flow,
generating
assets
to
create
a
structured
Financial
product
with
two
different
Investments.
You
can
either
invest
in
the
drop
or
the
10..
The
drop
token
is
essentially
a
debt
token.
It
gets
paid
a
fixed
rate
of
return.
A
The
10
token
is
essentially
the
equity
tranche
of
the
investment.
So
what
would
happen
is
a
contract
goes
into
this.
That
contract
eventually
then
issues
credits.
Those
credits
are
sold
into
the
open
market.
That
money
is
delivered
back
to
a
Smart
contract
and
that
smart
contract
executes
against
the
waterfall,
so
the
investors
in
the
senior
always
get
paid
back
first,
the
Juniors
get
paid
back
second,
but
the
junior
has
a
variable
rate
of
return.
A
The
seniors,
unless
the
entire
thing
goes
to
zero,
the
senior
will
always
get
paid
back
functionally
the
same
amount
right,
it's
think
of
it
as
you
put
100
thousand
dollars
in
the
interest
rate
is
ten
percent.
After
a
year,
you're
gonna
get
a
hundred
and
ten
thousand
dollars
back.
The
Junior
on
the
other
hands
has
a
variable
rate.
So
if
carbon
credit
prices
go
up
wildly,
the
junior
makes
a
lot
more
money.
If
carbon
created
prices
go
down,
the
Junior
can
be
impaired.
So
that's
the
idea
here.
A
This
gives
people
the
different
abilities
to
invest
in
these
projects
and
then
furthering
the
refi
stack.
You
have
protocols
like
solid
World,
which
are
being
developed
to
build
out
liquid
markets
for
forward
contracts,
and
so
the
way
that
that
works
together
with
flow
carbon
in
the
centrifuge
pools
that
we're
creating
is
you
have
people
like
Alcott
green
tray,
Ivy,
putting
projects
directly
into
the
centrifuge
pools?
A
Then
those
contracts
can,
if
the
the
pricing
is
correctly
done,
be
sold
out
immediately
into
the
solid
World
liquid
pools
and
then
that
Capital
goes
back
in
to
invest
directly
back
into
more
projects
and
that
cycle
repeats
itself.
Thus,
more
and
more
Capital
gets
invested
back
directly
into
projects,
and
then
those
things
become
available
for
sale
in
various
different
ecosystems
and
on
various
different
platforms
like
senken,
so
digital
monitoring,
reporting
and
mrv.
A
This
is
sort
of
the
real
part,
the
meat
and
potatoes
of
on-chain
carbon
credits,
because
this
is
where
the
real
data
comes
from
and
the
real
issuance
of
carbon
credits
exist
what's
happening
today.
That
you're
seeing
is
the
gold
standards
and
viewers
of
the
world
who
are
today.
The
issuers
of
carbon
credits-
they
are
the
people
who
today
are
The
Gatekeepers
to
what
isn't
isn't
a
carbon
credit,
that's
largely
accepted
by
the
market.
A
They
are
in
the
process
of
evaluating
how
to
move
these
things
on
chain,
but
at
the
same
time,
there
are
lots
of
web
3
native
startups
that
are
actually
going
a
step
further
and
have
already
issued
carbon
credits
on
chain
and
the
way
they've
done.
That
is
by
collecting
the
data
that
goes
into
a
carbon
credit
having
a
validator
who
comes
in
and
basically
validates
the
information
against
the
methodology
right.
So
the
way
a
carbon
credit
works
is
there's
basically
a
policy
that
says:
if
you
do
XYZ,
you
then
get
carbon
credits
right.
A
It's
obviously
much
more
complicated
than
that,
and
there
are
a
lot
more
variables,
but
it's
all
about
basically
taking
data,
applying
it
against
the
policy
and
then
having
credits
issued.
That's
a
really
really
good
function
for
a
smart
contract
and
a
policy
framework
that
can
be
developed
on
chain.
So
you
have
entities
like
loam
d,
climate,
open
Forest
protocol
and
regen,
who
are
issuing
carbon
credits
and
basically
bringing
that
digital
mrv
on
Chain
by
storing
that
data
on
blockchains,
which
is
sort
of
I
guess.
A
So
our
next
step
is
where
is
that
data
being
stored
right?
And
so
that's
where
you
have
protocols
like
hedera,
which
operate
like
the
guardian,
which
is
just
a
policy
framework
for
you
to
actually
build
your
methodologies
in
and
apply
your
data
sets
to
then,
all
of
that
data
gets
stored
by
our
lovely
hosts
on
filecoin.
A
So
the
unchaining
process-
this
is
one
of
the
pillars
and
where
flow
carbon
is
also
working,
is
to
bring
these
credits
on
chain
and
the
function
that
we
do
and
obviously
we're
all
working
towards
and
building
towards
a
world
where
these
things
are
natively
issued
on
chain.
But
right
now
they
exist
in
the
Registries
and
SQL
databases
and
have
to
be
bridged.
So
the
way
that
we
Bridge
them
is
we
bring
them
on
chain
as
individual
projects.
A
We
then
bundle
them
to
create
standardization
across
different
projects,
so
things
like
red,
plus
ARR
cook,
stove
projects,
those
all
would
get
bundled
together
because
they
should
trade
in
similar
price
bands
to
each
other.
And
then
you
have
the
ability
to
take
them
back
off
chain,
retire
them
directly
off
chain.
Redeem
is
taking
them
back
off
chain,
unwrap
them
from
one
bundle
to
put
them
into
another
bundle,
or
you
can
just
hold
them
and
basically
look
at
them
as
an
investable
asset.