🌱The Treasury
What is the Treasury’s role?
The Treasury is the driving force behind the appreciation of $GAIA tokens as it ensures the backing price. It is also the originator of all positive externalities Gaia delivers. The Treasury is a pool of capital invested strategically to maximize impact and revenues, intrinsically increasing the value of GAIA tokens through time.
The value of the Treasury accrues in 2 ways:
Its investments
Assets bonded
How will the Treasury be invested?
Gaia will be investing treasury funds into assets and projects that have a positive impact on our planet. We are continuously looking for investment opportunities that provide an attractive risk-adjusted return while actively contributing to the well-being of our planet.
Gaia will not simply follow an ESG investing strategy but rather a thematic impact investing approach focused on supporting maximum-impact solutions.
The table below explains the different degrees of sustainable investing:
In the initial phases, the Treasury will consist mostly of cryptocurrencies until the total asset under management is significant enough to make impact investments.
The Treasurys's Impact Investments
Backing leading VC funds for a regenerative world
Gaia supports venture funds and companies that are making a positive impact on our planet while providing token holders with an opportunity to make a difference and earn significant returns through the sale of equity in startups. By backing venture funds focused on climate, we aim to support the most promising innovations and technologies that can help us build a more sustainable world.
Gaia is part of Climate Capital’s Limited Partner network and has access to the fund’s deal flow. Climate Capital has invested in over 200 exceptional climate-impact companies since 2015. Their portfolio includes
Gaia is also part of Climate Avenger’s Limited Partner network. Climate Avengers are series A focused and their portfolio includes
Example of an off-chain Treasury investment:
One of our first potential ventures is to invest in carbon offset projects through the Sequestr platform. Through Sequestr, we will connect with landowners, farmers, project developers, & offset buyers to fund and launch carbon sequestration projects. Our treasury would then be composed of structured products as well as crypto assets. Our investments will be both off-chain and on-chain. This would help us dissociate from crypto market price movements and thus, bear markets.
Gaia would buy a set number of carbon credits, representing a percentage of the projected offsets of a chosen carbon offset project. If the offsets generated are below projections, we will still get the number of credits we purchased no matter what. However, if the offsets exceed projections, we will get the % of the project we own.
For example:
A project is estimated to generate 1,000T of offsets over 20 years for a total of 20,000 offsets. We purchase 10,000T offsets upfront representing 500 annually or 50% of the project.
In year 1, the project generates 800 offsets, which is under projections so we get the floor of 500 offsets
In year 2, the project generates 1200 offsets, which is above projections so we get 50% which is 600 offsets
In year 3, the project only generates 400 offsets, we get all 400 offsets and are owed 100 offsets from the next year
Gaia will therefore be paid in carbon credits and start generating revenue from real-world assets. We would also benefit from the price appreciation of these carbon credits throughout time.
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