🌳Principal Adverse Impacts on Climate and Environment

Environmental Impact Statement

In accordance with the regulatory requirements set forth by the Markets in Crypto-Assets Regulation (MICAR), this section aims to provide comprehensive information regarding the principal adverse impacts on the climate and other environment-related adverse impacts stemming from the consensus mechanism employed in the issuance and operation of our token, which adheres to the Ethereum protocol and the ERC-20 standard.

Consensus Mechanism: Proof of Stake (PoS)

The token issuance and transaction validation process for our crypto-asset is based on the Proof of Stake (PoS) consensus mechanism. This choice has been made to align with current best practices in minimizing environmental impacts compared to the previously prevalent Proof of Work (PoW) mechanism.

Adverse Climate Impacts

Despite the significant reduction in energy consumption offered by the PoS mechanism, there remain adverse impacts on the climate, including but not limited to:

Energy Consumption: Although PoS is substantially more energy-efficient than PoW, the validation process still necessitates electricity consumption. The cumulative energy use for running validator nodes contributes to the overall carbon footprint of the network.

Carbon Emissions: The carbon footprint of the energy consumed by the PoS validators depends on the energy mix used by the data centers. In regions where fossil fuels are a major source of electricity, the environmental impact in terms of carbon emissions remains a concern.

Other Environment-Related Adverse Impacts

Electronic Waste: The hardware used in running validator nodes, though less intensive than PoW mining rigs, still contributes to electronic waste upon obsolescence or malfunction. Proper disposal and recycling practices are essential to mitigate this impact.

Resource Utilization: The manufacturing of the hardware required for validator nodes involves the extraction and utilization of various natural resources, contributing to ecological degradation and resource depletion.

Mitigation Measures

To address these adverse impacts, we commit to implementing and promoting the following measures:

Renewable Energy Usage: Encouraging and incentivizing the use of renewable energy sources by validator nodes to reduce the carbon footprint.

Efficient Hardware Utilization: Advocating for the use of energy-efficient hardware to minimize energy consumption.

Sustainable Practices: Promoting the adoption of sustainable practices in the disposal and recycling of electronic waste generated by validator nodes.

Transparency and Reporting: Ensuring transparent reporting of energy usage and environmental impact data to stakeholders, along with continuous monitoring and improvement efforts.

Conclusion

While the shift to PoS represents a significant step towards reducing the environmental impact of our crypto-asset, we acknowledge that there are still adverse effects that need to be managed. Through ongoing commitment to sustainability and proactive measures, we aim to minimize these impacts and contribute positively to the broader effort of addressing climate change and environmental sustainability.