Our environment is at stake. Deforestation is happening at a rapid rate. Our planet loses forests equivalent to 27 soccer fields every minute. This means that more than 75,000 square kilometres of land are cleared in a year.
As expected, this is going to take a toll over our planet. Thankfully, a group of German entrepreneurs have come together to work on a blockchain-based project to save trees in Paraguay which is one of the worst affected countries by deforestation.
What is the Project All About?
TreeCoin, a blockchain-based project aims to stop deforestation by offering the participants a share in an ambitious reforestation project. The project plans to plant eucalyptus trees in vacant areas which are at least 20% bigger than the city of Paris.
The company believes that they will generate a profit by selling valuable eucalyptus timber every four years, in addition to saving trees from cutting down. The profit earned will then be reinvested to purchase more land for growing trees, and the cycle will keep on continuing.
The project was exhibited at BlockShow Asia by a group of German businessmen led by Mr Green, Mr Jorg Schafer.
The Idea Behind
A security token, called TREE, will be issued under Swiss jurisdiction. The token purchaser has the right to decide the number of trees that they plan to start with. Initially, one TREE token is equivalent to the plantation of one tree, which will be around $23, including all the management overhead and land purchases, the company revealed.
TreeCoin plans to invest 50% of the profit thus generated to buy more land to plant more trees, while the 10% will be donated to the social causes supporting nature, water treatment, and the likes.
The project scope is estimated to be 22 years, and during this period, TreeCoin plans to cover 597 square kilometres.
The project is backed up by the Paraguayan government, and the TREE coins will be treated as a legal tender, according to the company. The local workforce will be paid ‘above the average’, and 20% of their wages will be paid in TREE coins directly to their e-wallets.
The company plans to collaborate with local grocery stores to offer discounts between 15 and 20% on purchases made through TREE coins.
The team admits that this initiative might not stop the extinction of the rainforest, but it will surely set up the right example for the business world.