Saving the Earth your thing? There’s a cryptocurrency project supporting that.

As I listened to Friday’s edition of Bankless, a popular cryptocurrency PodCast, as they discussed an interesting project called Klimt DAO.

Klima DAO

This project is a fork of another DAO which aims to create a cryptocurrency created by carbon credits.

Carbon Credits

These are basically certificates companies buy from their governments to allow them to keep polluting the environment.

Back to Klima DAO

The Klima DAO plans to buy up these credits using money spent on its tokens, so that the tokens are backed by a real world asset.

Carbon Credits have outperformed the market

It appears from the presentation, that the value of carbon credits has steadily since they were invented. And as an asset class they outperform most of the worlds equity markets. Thus many different investors and investors consortiums buy and sell carbon credits.

Back to Klima DAO

The Klima DAO hopes to not only back their coin with this valuable asset, it plans to horde them and increase their scarcity, making them more and more expensive. So this will increase the value of the Klima Token.

Back to the environment

The other effect of hoarding carbon credits, and driving up the price will be to make it more and more expensive for companies to pollute the environment. So it creates an economic incentive for companies to reduce the carbon they make. This considered by many to be a good thing. But few nation states have been able to fix this worldwide problem. So this where a DAO comes in to play.

DAO = a decentralized autonomous organization

A DAO is like a company, run by computer code, and the computer and it’s code are duplicated all over the world. There is no main office, there is no CEO or President. There is no one to arrest or assasinate. Hundreds, thousands or even millions of persons can buy the tokens of this DAO all over the world. These people all want to end climate change and they invest in an asset that makes real change possible.

It’s an amazing transnational type of movement with no face, no name and it is very hard to stop because it’s decentralized and no person is in charge. It’s computer code.

Taskmaster wrote about the death of the nation state last week.

I believe this is how it begins. Nation states are becoming weaker then the multi-national corporations. Nation States can’t stop them and can’t control the political narrative. But the current Global Market can be decentralized artificial intelligence can be used to put economic pressure on even large companies, who have no way to escape the pressures brought to bear buy global asset markets.