Agoric Cosmos Zero: Offset Agoric Validator Set Signaling proposal

This proposal provides details for acquiring carbon credits via Nature Carbon Ton tokens from Osmosis and City Forest Credits from Regen Marketplace.

Background

The environmental cost of blockchain technology is often cited as a problem that needs to be tackled before widespread adoption. Proof of Work consensus algorithms, such as those in use by Bitcoin and other PoW networks, create an arms race of computing power in order for a miner to be the first to create a new block and so obtain the reward.

Cosmos’ Proof of Stake validation system drastically improves on this by making this competition take place over attracting more delegation of stake from users. Validators are not required to perform deliberately complicated calculations and so can run on relatively low-power machines. However, these machines are still required to be online 24/7 and perform calculations to confirm each block as it is generated. This results in a carbon footprint for each blockchain in the Cosmos ecosystem.

Based on feedback from carbon footprint data reported by validators of Regen Network, Agoric Network is projected to emit at most 4,175 tons a year in carbon, negatively affecting our climate.

Proposal Details

Proposal: Make Agoric Carbon Neutral by Purchasing and Retiring (95% of Nature Carbon Ton and a 5% of City Forest Credits

• Voting YES to this proposal indicates approval to address Agoric Network carbon emissions footprint by purchasing 3,966.25 (USD $11,898.75 at USD $3 a credit) of Nature Carbon Ton and 208.75 (USD $8,350 at USD $40 a credit) of City Forest Credits at worst case projections representing the 2022 carbon footprint of Agoric Network.
• Voting NO to this proposal indicates that this funding should not be allocated.

Based on feedback from carbon footprint data reported by validators of Regen Network, and applying the worst-case scenario, Agoric Network is projected to emit at most 4,175 tons a year in carbon, negatively affecting our climate.

This proposal asks for a spend of ~50,000 $BLD (USD $20,248.75 at current price of ~USD $0.40) from the Community Pool to purchase and retire carbon credits to offset Agoric Network 2022 carbon emissions, becoming a carbon-neutral blockchain. The price of the native token would be adjusted based on the market price at the time of execution.

This proposal asks for an annual protocol commitment to purchase carbon credits and maintain carbon neutrality over time.

Method

• Agoric Network will purchase 3,966.25 (USD $11,898.75 at USD $3 a credit) of Nature Carbon Ton on the Osmosis exchange from the NCT:Regen Pool and 208.75 (USD $8,350 at USD $40 a credit) of City Forest Credits on Regen Marketplace.
• Agoric Network will retire these carbon credits on Regen Ledger to offset Agoric Network 2022 carbon emissions.

Info about the CosmosZERO Program: https://regennetwork.notion.site/Cosmos-ZERO-Achieve-Protocol-Validator-Net-Zero-Carbon-Emissions-ddd441e3ff3d4dbda83265433843ec10

CosmosZERO Carbon Footprint Analysis: https://docs.google.com/document/d/1H-w4dBc1Svcmw_fzEKUFRgK_pga1qsGMHCTsUKUmWEA

About Nature Carbon Ton (NCT) on Osmosis

Regen Network is launching NCT, Nature Carbon Ton, a premium digital carbon basket of nature-based projects in cooperation with the Osmosis decentralized exchange. NCT is a fungible, IBC-compatible carbon basket backed by nature-based carbon credits that have verifiable ecological benefits issued onto the Regen Ledger blockchain. In order to provide sufficient liquidity for any Cosmos chain or validator to choose to offset their project for multiple years, Osmosis and Regen Network will co-own NCT liquidity, establishing NCT:$Regen and NCT:Osmo pools, with rewards. Once the non-custodial bridge from Polygon to Regen Ledger is completed, these pools will launch, offering not only the opportunity for protocol offsetting via NCT on Osmosis, but protocol liquidity rewards mining.

Forum discussion: https://community.agoric.com/t/protocol-carbon-neutral-proposal-agoric/124/8