How a project is going to save trees in Paraguay via Blockchain

A group of German entrepreneurs has developed a project based on the blockchain that aims to save trees in Paraguay, one of the countries most affected by deforestation.

Every minute, our planet loses 27 football fields worthy of forests. In a year, which amounts to more than 75,000 square kilometers, and in 2016, according to a study by the University of Maryland, a sad record has been set: about 297,000 square kilometers of forests have been torn down, a bit more. less all the territory of Italy.

The consequences are harsh. Deforestation is responsible for around 15% of greenhouse gas emissions, which cause global warming.

The project, called TreeCoin, aims to stop deforestation one small step at a time. It offers participants the opportunity to participate in an ambitious reforestation project in Paraguay, where fast-growing eucalyptus trees will be planted in 20% larger empty areas across the city of Paris – and this is only the beginning.

According to the company, every four years, the land will generate a profit from the sale of precious eucalyptus timber – and every four years, more and more square kilometers of forests will be saved from being cut elsewhere. A portion of the profits will be reinvested to buy land to plant more trees, and so on.

In 22 years, the team intends to accumulate about 597 square kilometers of reclaimed forest areas that, according to them, "will continue to generate profits forever". This is the essence of the TreeCoin project, presented at BlockShow Asia by a group of German businessmen led by Mr Jörg Schäfer, also known as Mr. Green.

Business mechanics

TREE is a security token that will be issued by the company under Swiss jurisdiction. The token buyer can decide how many trees they want to plant at the start of the project. A TREE token is equivalent to a tree planted at the beginning of the project and will have a value of $ 23, with all purchases of land and general management costs included, explains the company.

TreeCoin promises that 50% of the profit obtained by selling timber will be re-invested to buy more land to plant more trees and 10% will be donated to charity to support projects related to "nature, water treatment, hospitals, service centers," childhood, foundations and associations for people with disabilities and disadvantages ".

The current purpose of the project is 22 years, and during this period, the TreeCoin team will try to accumulate approximately 597 square kilometers under its management, becoming one of Paraguay's largest landowners.

Offer of hybrid tokens

Another novelty of the TreeCoin approach is its "double offer" method. According to the company, each TREE security token issued will produce the issue of 100 TreeCoins, the payment tokens associated with the project. Seventy of these will go to the TREE token holder, and the remaining 30 will go to the project team to cover expenses and pay workers' wages.

The team says the project has the support of the Paraguayan government to set up TreeCoin as legal tender in the local economy of the area where the project will operate. The company promises to pay local labor "above average" and will give 20 percent of TreeCoin salaries directly to local employee e-wallets. To encourage the use of TreeCoin, TreeCoin plans to collaborate with local grocery stores to offer 15 to 20 percent discounts on all purchases made with TreeCoin.

TreeCoin is freely negotiable, so TREE token holders will be able to sell their TreeCoins to local economies when the project takes root, underlines the company.

The team admits that TreeCoin alone will not produce an obvious change in the rainforest extinction: even at its maximum capacity, the TreeCoin venture will save about a couple of days of forest lost every four years. However, the project aims to give an example for the rest of the business world.