We are taking on a lead role on the Regen Network as a validator partner. This partnership goes beyond simply providing infrastructure to secure another Proof-of-Stake network. In working with the Regen Network, we want to actively contribute to create the coordination mechanisms required to foster regeneration of our planet’s resources.
This post describes the reasoning of our partnership and how we plan to assist the Regen team in the coming months.
🤝 Why is Chorus One partnering with Regen?
Climate change is real and endangering our planet. Blockchains have the potential to be used as a force for change by providing the tools necessary to coordinate on a massive scale. Chorus One strives to contribute to building out those tools. This is core to our mission and part of the reason why we are working on Proof-of-Stake.
🌍 What is the Regen Network?
Regen Network is building a platform to enable planetary scale regeneration. The Regen Network is a Proof-of-Stake blockchain focused to create enforceable agreements about ecological outcomes, e.g. I will pay you $X if you can verifiably sequester Y tonnes of carbon. Another function of the Regen Network is the minting of non-fungible assets that represent scientifically robust and auditable claims about ecological state. Such NFTs could serve as credits that could e.g. be obtained by organizations or individuals seeking to offset their carbon emissions.
⛓️ Why does it need its own blockchain?
Regen’s use case needs trustless escrow mechanisms and a transparent, immutable ledger to ensure auditability. In addition, successfully bootstrapping a market for ecological agreements benefits from sovereignty and the involvement of (and token distribution among) critical stakeholders. Gregory wrote some insightful posts on Regen’s tech stack choice and stakeholder model.
💱Why are markets necessary to solve climate change?
Relying on government intervention or trying to minimize one’s own impact is unlikely to suffice to reverse the impact various industries had on our climate. By creating a market for ecological agreements, the Regen Network aims to financialize regeneration. We believe this could be an essential piece to make a sustainable economy work - look out for more of our thoughts on this topic in the coming weeks!
💰 What is the market and how big is it?
Consumers increasingly demand ecological products and verification services are already a sizeable market today. But Regen’s addressable market goes way beyond sustainable brands; ecological agreements could be utilized by insurance companies that are incentivized to decrease their risks, government programs that seek to increase ecological practices, individuals seeking to have a climate positive impact, etc.
Additionally, there’s an untapped “Blue Ocean” market for financial derivatives on ecological outcome if a system like Regen’s is adopted. Doesn’t “DeFi for Future” sound exciting?
📈 How will the token generate value?
XRN is the native token of the Regen Network that entitles stakers to future cash flows generated by fees on the network. The Regen team is in the process of a private sale for XRN tokens, you can find more information here. In a future post, we will analyze the Regen Network’s token economics and distribution to see how demand for Regen’s solutions translates into value creation for XRN holders.
🛠️ How does the Regen Network technically work to achieve these goals?
Finally, trustless, automated ecological agreements require an interplay of a variety of technologies. Escrow and payment smart contracts, verification and oracle design, and many more features need to be implemented in an incentive-compatible way.
We’re looking forward to assist the Regen Network in developing and refining these protocols. We’ll be publishing some more content on Regen soon, so stay tuned by following us on Twitter or by subscribing to our mailing list!