TreeCoin
TreeCoin is an Australian-owned and operated project that utilizes blockchain technology to create a system of "carbon-backed money." [1][2] The project was founded in 2019 by Demian Natakhan [2] and Sylph Hawkins [4] with the goal of monetizing carbon dioxide sequestration performed by trees. [1]
By tokenizing verified carbon drawdown, TreeCoin aims to provide a financial incentive for global reforestation and establish carbon sequestration as a mainstream financial asset class. [1] [2]
Overview
TreeCoin is a blockchain-based system designed to connect tree growers with individuals and organizations seeking to offset their carbon footprint. The core concept is to create a direct financial mechanism that rewards reforestation efforts.
The project's vision is to establish carbon sequestration as a tangible asset class that can be used to back global financial transactions. By doing so, it seeks to link ecological health directly with financial returns. [1][2]
The project's mission is to improve carbon management within the environmental landcare industry by applying modern technology, including blockchain, artificial intelligence, and remote sensing. [1]
It operates on the principle that each token generated represents a verified quantity of carbon dioxide drawn down from the atmosphere by trees. This creates a transparent and auditable asset for the voluntary carbon market. The ultimate goal is to facilitate the reforestation and monetization of 100 million hectares of global forest by the year 2030. [1][2]
As an Australian-owned company, TreeCoin is an official signatory of the Australian Carbon Industry Code of Conduct, indicating a commitment to industry standards and ethical practices in the carbon market. [1]
History
The initial concept for TreeCoin was conceived in 2018 by co-founders Demian Natakhan and Sylph Hawkins. The company was officially founded in Australia in 2019. [3][4]
The project was established with the stated purpose of using technology to enhance carbon management practices within the landcare and forestry sectors. Since its inception, TreeCoin has focused on developing its technological framework and building partnerships with technology firms and investors to realize its goal of tokenizing carbon sequestration on a global scale.
The company is a signatory to the Australian Carbon Industry Code of Conduct, holding the Signatory ID AS0015. [1]
Technology and Mechanism
The TreeCoin system is built on a foundation of blockchain technology, a unique minting process based on physical environmental work, and a robust data verification model. [2]
Blockchain Infrastructure
TreeCoin is built on the Polygon blockchain. The project selected Polygon for its properties as a carbon-neutral, scalable, and robust platform. This choice supports the project's environmental mission by utilizing a network with a minimal carbon footprint.
The platform's scalability and low transaction fees are intended to facilitate a high volume of micro-transactions, making the system accessible and efficient for a wide range of users, from large-scale forestry operations to individual purchasers. The inherent transparency of the blockchain is used to record all transactions and data, providing an immutable ledger for carbon sequestration and token retirement. [2]
Tokenization and Value
The project's digital asset is the TreeCoin token. Each token is designed to represent a specific, verified environmental value. The established standard is that one TreeCoin token is equivalent to one tonne of proven carbon dioxide equivalent (CO2e) that has been sequestered from the atmosphere by trees. This direct 1:1 ratio provides a clear and understandable unit of account for purchasers who are seeking to offset their carbon emissions. [2]
Proof of Carbon Drawdown
TreeCoin employs a minting mechanism it refers to as "proof of work." This concept is distinct from the computational proof-of-work used by cryptocurrencies like Bitcoin. In the TreeCoin ecosystem, the "work" is the verified measurement of carbon drawdown from trees. The minting of new tokens is directly triggered by the submission of this verified data. This model ties the creation of new financial assets directly to positive, real-world environmental activity. [2]
The data required for this process is collected using a combination of technologies, including:
- Remote Sensing: Satellite imagery and other remote data sources are used to monitor forest growth and health over large areas.
- Drones: Unmanned aerial vehicles are deployed for more detailed, localized data collection and imagery.
- Augmented Reality (AR): AR technologies are used to assist in on-the-ground measurement and verification.
This multi-faceted approach to data collection is designed to ensure the accuracy and reliability of the carbon sequestration measurements that underpin the value of each token. [2]
Data Integrity and Verification
To ensure the credibility of the carbon data, TreeCoin has implemented a rigorous auditing and verification process. The carbon measurements submitted by growers are validated using AI-driven auditing technology in conjunction with satellite data. This validation step is foundational to the integrity of the entire system, as it confirms that the carbon sequestration claimed has actually occurred. All carbon drawdown data and the associated validation records are permanently stored on the Polygon blockchain. This creates a transparent and tamper-proof audit trail that can be accessed by any participant in the ecosystem, ensuring the integrity of each token and the offsets they represent. [2]
Ecosystem
The TreeCoin ecosystem is structured around the interactions of several key participants and a four-step process that governs the lifecycle of a token from generation to retirement. [2]
Participants
The ecosystem involves three primary groups:
- Growers: This group forms the supply side of the market and includes landowners, forestry companies, farmers, and governments that engage in planting and managing trees. Their role is to perform the physical work of reforestation and collect data on the carbon their projects sequester. In return for this verified environmental service, they earn TreeCoin tokens, creating a direct financial incentive for their efforts.
- Purchasers: This group represents the demand side and consists of organizations and individuals who wish to offset their carbon footprint or meet corporate sustainability goals. They buy TreeCoin tokens, often directly from growers via the project's portal, to acquire a verifiable claim on a specific amount of sequestered carbon.
- Investors: This category includes angel investors and other financial partners who provide capital for the project's development and operations. Their involvement supports the technological infrastructure and business development required to scale the ecosystem.
The interaction between these groups creates a marketplace where environmental action is the primary commodity. [2]
Four-Step Process
The flow of value within the TreeCoin ecosystem follows a distinct, four-step lifecycle:
- Token Generation: The process begins with the growers. These entities generate TreeCoin tokens based on the verified carbon drawdown data from the trees they manage. This step directly converts the biological process of carbon sequestration into a digital asset.
- Auditing & Verification: Before the tokens hold value, the underlying data must be validated. TreeCoin's system uses AI and satellite data to audit the growers' carbon measurements. This independent verification is crucial for establishing trust and ensuring that each token represents a legitimate and accurately measured tonne of CO2e.
- Exchange: Once tokens are generated and verified, they can be sold. Organizations and individuals can purchase TreeCoin tokens through the TreeCoin portal, often directly from the growers. This transaction provides the financial return to the growers and transfers the carbon offset asset to the purchaser.
- Carbon Lock (Token Retirement): To ensure that a carbon offset is not double-counted or re-sold, purchasers have the option to "retire" their tokens. This is accomplished by sending the tokens to a designated "carbon-lock wallet," which is a one-way address on the blockchain. This action is permanently recorded on-chain and serves as an immutable and publicly verifiable proof that the associated carbon offset has been claimed and taken out of circulation. [2]
Goals and Affiliations
TreeCoin has publicly stated its primary goal is to facilitate the reforestation and monetization of 100 million hectares of global forest land by the year 2030. [2] [1] This objective underpins its mission to establish carbon sequestration as a significant, mainstream asset class. [1]
The project is an official signatory of the Australian Carbon Industry Code of Conduct. As a signatory, TreeCoin is listed with the ID AS0015. This affiliation signifies the company's commitment to adhering to a framework of best practices for the Australian carbon industry, promoting market integrity, consumer protection, and appropriate interaction with project stakeholders. [1] [2]
TreeCoin also notes partnerships with several categories of organizations, including next-generation carbon auditing technology companies, software and blockchain development teams, and investors. [1]
Leadership and Team
The TreeCoin project is led by its co-founders and supported by a team of executives and advisors with experience across technology, finance, law, and carbon science. [1]
Core Team
- Demian Natakhan: Co-founder and CEO Global [3]
- Sylph Hawkins: Co-founder and CFO Global [4]
- Jeremy Nock: CEO of Europe, Americas [5]
- Vijay Bhayani: Lead Technical Developer [6]
- Mavani Talagala: Digital Marketing Coordinator [7]
- Biánca Rowe: Public Engagement Officer
- Michael Coleman: Legal Counsel [8]
Advisors
- Erik Zimmerman: Business & Marketing
- John Bassilios: Financial Services Regulatory Compliance
- Barath Kris: App Development
- Luke Bonnici: Software & Technology
- Justin Borevitz: Carbon Integrity
- Fiona Sutton: Carbon Integrity
- Lea Lewin: Carbon Markets
- Caoimhe O'Donoghue: Legal
The information on the team and advisors was provided by the project's official website. [1]