What? A community-funded, expertly advised ecosystem funding high impact climate projects.
Why? Climate disaster is driven by broken incentives; we can do better.
How? Spirals building green money legos for infrastructure players to bake this into the rails.
Joining Spirals means opting in to a new economic paradigm that values natural capital. Choosing a world with positive externalities where economic and ecological incentives are aligned.
What is Spirals?
Spirals finances climate impact through yield earned on tokens like ETH & USDC. When users & protocols deposit into our token vaults, they get issued an equivalent amount of green tokens (gTokens). These gTokens represent the original deposited asset earning passively for funding climate projects, and shares of your certified on-chain climate impact through Spirals.
TODO: link to green tokens
Defining climate impact is something we take very seriously, looking far beyond carbon markets and beyond carbon. More on that here.
Read more on our blog:
Why do we need better incentives?
Currently, being climate-positive is at odds with financial success. This just scratches the surface. We’ve been diving into incentives driving the climate crisis and outline the most acute ones in the next section.
Broken Incentives cause systemic climate problems
Maximizing Climate Impact
How does Spirals build better incentives?
At a high level, Spirals aligns financial and ecological outcomes by tapping into the returns generated by natural capital as an asset class.
People will opt for earth-positive actions only once they are easier, cheaper and tastier. To get there, we believe we need a major recalibration of incentives. The blockchain is a set of tools we can use to experiment with incentives.
If this sounds interesting, we hope you join us in a journey through these docs as we break down how we make this possible.
The Spirals ecosystem has several key stakeholders:
Projects are financed proportional to member allocation preferences. In return for capital, these projects return tokenized natural assets.
Backers deposit tokens and receive back a green version of the token. This green derivative, or Impact Token, can (1) always be redeemed or (2) transferred & used like any other token.
Experts in climate can join our Climate Council. They have authority to verify (or remove) climate projects.
Buyers purchase and retire carbon credits to claim offsets.
The ecosystem creates a regenerative flywheel. We’ll go deep in later sections.