Treecoin: Pioneering Climate Finance with Mangrove Restoration

The Birth of Treecoin

In 2017, an innovative crypto asset called TREE Coin made its debut on the Bitcoin blockchain. This was one of the original “Colored Coins,” which was one of the very first projects to attempt DeFi and NFTs on the Bitcoin blockchain. The project was initially proposed by Alan Laubsch, who had businesses in both the crypto space and carbon markets.

The token was launched as part of an effort to fund the restoration of mangroves in Myanmar’s Thor Heyerdahl Climate Park — the central hub of the 1764 project. The initiative was based on the creation of 1,622,750 TREE coins, each representing a commitment not only to plant a mangrove tree but also to nurture their growth over time.

In addition to being the first project to tokenize trees, these tokens also represented the holder’s stake in the carbon rights and revenue generated by each tree. This concept created a tangible link between the TREE coin stakeholders and the mangrove trees.

The demand for carbon neutrality and net-zero pledges has caused a surge in carbon markets. The prices for Blue Carbon, including those associated with TREE Coin, have been steadily increasing over the years. This trend further underscores the value of the TREE Coin project in the context of the global carbon credit market.

Empowering Local Communities

One of the most significant aspects of the TREE Coin initiative is its positive impact on local communities around the project. The project’s activities created an influx of employment opportunities, bringing much-needed economic stimulus to the area. The population found work as tree planters, park managers, and more, uplifting the regional economy and improving living standards.

Moreover, the influx of resources and funding sparked infrastructural development in the region, which will make it more accessible and improve the overall quality of life for local residents. By integrating the local communities into the project’s operations, TREE Coin ensured a sustainable and long-lasting partnership that goes beyond mere economic benefits, fostering a sense of stewardship and ownership towards the newly restored mangrove habitats.

The Power of Mangrove Restoration

In addition to the benefits local communities experienced as a result of this project, the Mangroves themselves are important. Mangroves are incredibly effective at storing carbon, with a single hectare of mangrove forest storing an average of 1,025 tonnes of carbon, around four times that of tropical rainforests. This is due to their unique physiology and habitat. They have a network of roots that allow microbial mats to grow, which constantly absorb CO2 from the atmosphere to create oxygen. Additionally, mangroves use acids produced by their roots to dissolve carbonate rock such as limestone, turning CO2 into a carbonate and preventing it from being released into the atmosphere. This makes them a vital tool in the fight against climate change.

Mangroves also play a crucial role in protecting coastlines. Their dense network of roots helps to reduce beach erosion by holding the soil in place. They also act as a first line of defense against extreme weather phenomena, such as cyclones and tsunamis. In fact, studies have shown that areas with mangroves suffered considerably less damage from such events.

Mangroves are home to a rich ecosystem of marine life. They create environments suitable for other plants, insects, birds, lizards, and even larger mammals like monkeys and tigers. This rich biodiversity creates endless possibilities for scientific research and contributes to the overall health of our planet.

The Rise of Mangrove DAO

In 2022, as the mangrove restoration activities were carried out and TREE Coin holders were about to receive their first credits — Mangrove DAO was created as a governance mechanism, offering a platform for the TREE Coin community to participate actively in key decisions concerning the project’s future and carbon credit allocation. TREE Coin holders were transitioned to being MANGROVE token holders on the Polygon blockchain.

Mangrove DAO has been a major boon to the Regenerative Finance (ReFi) space. Its collaborative ethos embodies a paradigm shift in climate action. By harnessing the principles of decentralization, transparency, and collective decision-making inherent to blockchain technology, Mangrove DAO is reinventing how communities engage with environmental projects. The first batch of 3000 Verra certified carbon credits delivered to Mangrove DAO were tokenized via Toucan and are currently available for purchase via the CarbonMark on-chain carbon credit marketplace.

Solid World

As part of Solid World’s launch, MangroveDAO voted to allocate a portion of their upcoming carbon yield to Solid World’s protocol — giving us a platform to share this important piece of ReFi history with the world. Solid World is now helping to fund and advance Mangrove Restoration efforts globally, by enabling much-needed liquidity to the project developers.

Join Solid World’s innovative approach to infrastructure project financing. Stake in our Mangrove Restoration Pool, support critical climate initiatives like the renowned 1764 project, and earn around 14% APR. Let’s create a sustainable future together. Stake with Solid World today!

Try the app today — https://app.solid.world/

Solid World Co-Founder Rez published his thoughts about the power of mangrove restorations in a recent post on the Klima DAO forum.