By Kim Callaghan
Carbon offset is an important consideration when creating NFTs. Why? Because each time we create an NFT, we can use huge amounts of energy. Which results in greenhouse emissions created by the hydro source used to mine the NFT.
Most NFTs are currently minted on Ethereum blockchains. To validate their tokens and coins these chains use proof of work problems. These problems must be solved by miners (the people who create and validate crypto coins and tokens) in order to add a new transaction to the blockchain. These complex proof of work problems use a LOT of computer energy. Recent studies by the Digiconomist ound that a single Ethereum transaction can use as much energy as a US household consumes in 2.5 days. The energy source creating power where the miner lives can also impact the level of greenhouse gases produced by a transaction. In coal-powered areas, greenhouse gas production is much greater than in areas using hydroelectricity.
So each time an NFT is created, it can produce a huge amount of greenhouse gasses. The solution? Using blockchains that validate their tokens differently (and use less energy) and using carbon credits to offset the greenhouse gas emissions.
“Appreciating our ethical responsibility to help protect our environment, Award Pool proudly commits to a carbon-neutral position. We strive to minimize our impact in everything we do,” says Brenda Cohen, Co-Founder/CMO of Award Pool.
Carbon offsets are environmental programs that allow companies and individuals to neutralize their carbon footprint. These programs invest in projects that reduce greenhouse gases. Essentially, buying carbon offsets offers a way for companies to balance the number of carbon emissions they produce with the amount they potentially reduce. This is where the term ‘carbon neutral’ comes in. If a company reduces the number of carbon emissions by the same number of carbon offsets purchased, they can call themselves carbon neutral.
“We are at the forefront of engagement marketing and NFT rewards, and we want to make the environment a priority in our company values and give our clients a chance to make it theirs. That is why we have partnered with companies like CELO, a carbon-neutral blockchain and Cloverly, an integrated carbon offset software solution to ensure all NFT that Award Pool offers are eco-friendly,” explains Brenda.
Carbon offset projects are often designed to reduce future emissions in developing countries. This could be by projects that distribute low-energy use light bulbs to reduce coal-powered electricity consumption. Or a project could distribute efficient cookstoves that reduce household emissions. And, of course, tree planting and forest conservation also help reduce greenhouse gases.
Many of these projects also have added social benefits in developing countries. Not only will a low-energy light bulb reduce emissions, but it will also decrease the electricity bill of that household. This allows people to use that money to purchase other necessities and can help achieve a better standard of living.
"With our partners, in 2022, we will offer eco-actions built right into our challenge system so we can offer users the opportunity to choose what kind of carbon-offset they wish to support,” says Brenda.
By investing in carbon offset programs, NFT creators can help to reduce and neutralize the emissions they create. Depending on the project they invest in, offset projects can also have many social and economic benefits in the project area. With the right leadership and investment, NFT creators can actually lead the way in making NFTs carbon-neutral and environmentally responsible.
“We are proud to make sustainability one of our core values at Award Pool and look forward to offering our clients many options to support eco-friendly blockchains and carbon-offsetting projects,” says Brenda.
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