Follow us on a deeper dive into our recently announced partnership with Climate Collective, which will allow us to advance research and development for biodiversity tokenization. The Climate Collective was introduced by the Celo Foundation less than a year ago with the goal to shape a community driving the tokenization of natural capital, for example in carbon sequestration. Celo has decided to back 40% of their reserves in natural capital assets. But what exactly is Celo?
Initially, the project started as a mobile-first payment solution for the unbanked, by focussing on unparalleled mobile integration, for example through its mobile first wallet Valora. Celo is a carbon-neutral layer 1 and is increasingly positioning itself as the go-to chain for DeFi. It achieves carbon neutrality not only by having a PoS consensus but also by offsetting its emissions by funding community tree planting through Wren.
Celo has enabled multiple projects so far, such as:
impactMarket, providing financing for UBI projects in underdeveloped regions.
Moss, bringing carbon on-chain as the first nature backed currency bought by Celo to back its stablecoins.
Doni, a decentralised method for charity fundraising and donations.
In addition to those, several native DeFi projects exist or are being developed on Celo and it is listed on most crypto exchange wallets.
The idea of Celo, that some would term solarpunk, is based on the arguments made by Charles Eisenstein in his book Sacred Economics. Eisenstein advocates for a profound revision of how our money and our economy works, bringing a modern philosophical input to the problem of the commons, especially from an ecological perspective, which is bound to become mainstream with the advent of natural capital accounting.
But Celo goes beyond offering a unique layer 1 for businesses and is prepared for the disruption in the crypto economy that CBDCs (Central Bank Digital Currencies) inevitably will bring. The obvious use case is the development of currencies on top of Celo, but the possibilities go beyond that. For example, extensive research into emerging economies and their banking needs can provide financial inclusion like few other projects. Celo is thus at the forefront of multiple new developments in the web3 space and will continue to bring unorthodox approaches to the field in the future.
For readers, an in-depth review of what Celo is and how it has developed can be found in the form of a blogpost by notboring: https://www.notboring.co/p/celo-building-a-regenerative-economy
For listeners, this Podcast Episode on the ReFi Podcast is highly recommended to get a grasp on Celo: Apple Podcasts