People’s lives and Earth’s ecosystems are at an increasing risk of catastrophe if nations fail to reduce carbon emissions in the upcoming years. We believe social and environmental impact should be at the forefront of investors’ minds. There is a rising trend in sustainability and impact investing in traditional finance, but a lack of such opportunities in decentralized finance.
According to the World Economic Forum (WEF), the climate crisis is the consequence of a global coordination problem. The main failures come from the inefficiency to coordinate policies and capital investment into the commitments necessary to address the most pressing threat to humanity.
Accelerated action is needed to avoid more significant loss of life, livelihood, and biodiversity.
“Web3 climate tools and services share values inherent to ReFi and are foundational to the scale of global coordination needed to tackle climate change.”
“As greater interest and research, as well as robust policy, is invested into the ReFi space, the more effective the incentive for individuals and businesses to take care of the planet.”
“The emergence of Web3 technology, values and ideas inherent to the ReFi movement can mobilize capital to fund the climate crisis solutions [...] within the time and at the scale required to fulfill the Paris Climate Accord’s global commitments.”
Gaia incentivizes and coordinates capital flow toward impact investments that address the most pressing threats to humanity while providing returns to token holders.
The main cornerstone of Gaia is the Treasury, an impact fund dedicated to generating both returns and positive externalities for our planet. The Treasury is built through users depositing assets in exchange for our token, $GAIA, as well as benefiting from the performance of its own investments.
Gaia makes impact investing opportunities more attractive in two main ways:
I. Partially dissociating the value of the impact fund with the value users hold. This allows for greater potential returns for holders.
II. Limiting the downside risk for holders by backing each token with the Treasury assets. This is achieved thanks to the Backing Price which implies a minimum price per $GAIA token