Introduction
Welcome to the tutorial on “Planetary Inclusion Natural Capital & Sustainable Stable Assets.” In this tutorial, we will discuss the concept of bringing monetary inclusion and planetary inclusion together. We’ll explore the ideas of natural capital and sustainable stable assets, focusing on the platform called Mento, built on Celo. We’ll also learn how to provide feedback and contribute to the development of Mento.
Background and Community Engagement
Before diving into the details, let’s understand the context. Mento is the stability platform on Celo, and its goal is to create a world where the economy is denominated in local natural capital-backed stable assets. This platform aims to strengthen communities and preserve the environment. To initiate discussions and gather feedback, a blog post has been written and shared on the Celo forum. You are encouraged to participate in the conversation and contribute your thoughts.
Celo: A Sustainable Platform
Celo is a unique platform known for its sustainability. It utilizes significantly less energy compared to common proof-of-work platforms like Bitcoin and even uses less energy than a simple Google search. Moreover, Celo offsets the energy it uses, making it carbon-negative. However, the Mento team wants to go a step further and build something that can internalize the costs of natural capital destruction, contributing to the reversal of the current ecological crisis.
The Power of Stable Assets and Mento
Mento aims to design a stability platform where the adoption of stable assets leads to the demand for regenerative assets. As history has shown, when money is backed by certain assets, people tend to increase their production or involvement in those assets. Mento intends to replicate this phenomenon by creating a system where the demand for stable coins leads to an increased demand for regenerative assets. The Mento team has already developed stable assets with real-world use cases, such as the Grameen Philippines COVID Relief Program and the Seloreal payment system in Brazil.
Expanding Adoption and Use Cases
While Mento’s stable assets are already being used in various use cases, there is still plenty of room for growth. The international remittances market is projected to be larger than a trillion by 2030, presenting a significant opportunity for stable assets. Stable assets are ideal for remittances, payments, lending, borrowing, savings, and mobile payments. Additionally, the mobile point of sale market is expected to reach a size of 1.4 trillion, further emphasizing the potential for Mento’s stable assets.
Building a Better Mento
To grow stable asset adoption and improve Mento, community feedback and collaboration are crucial. The Mento team is actively seeking suggestions and engagement from the community. They have set up a forum post for feedback and will conduct a session to gather feedback in person. The goal is to build a better Mento together with the community, focusing on economic, technical, and environmental sustainability.
Understanding the Celo and Mento Relationship
It’s important to differentiate between Celo and Mento. Celo refers to the layer one protocol that aims to create a financial system for prosperity, while Mento is the stability platform built on top of Celo. Mento supports Celo’s mission by creating an economy denominated in local natural capital-backed stable assets.
Making Mento Sustainable
Mento strives to be economically, technically, and environmentally sustainable. The team plans to enhance liquidity, participation, and technical features to achieve these sustainability goals. This includes making stable assets more liquid and participatory, as well as improving technical scalability. Furthermore, Mento aims to create nature-backed currencies, where the demand for stable assets contributes to the demand for regenerative assets.
Implementing Nature-Backed Currencies
To implement nature-backed currencies, Mento aims to integrate natural capital as a backing for stable assets. Natural capital refers to the stock of natural resources and ecosystems that provide valuable goods and services to society. By linking stable assets to natural capital, Mento creates an economic incentive to protect and restore the environment.
The process of implementing nature-backed currencies involves several steps:
- Identifying valuable natural capital: Mento works with local communities and environmental experts to identify and assess the natural capital that holds value for a specific region. This could include forests, wetlands, biodiversity hotspots, or other ecosystems that provide essential services like clean water, carbon sequestration, or habitat preservation.
- Measuring and valuing natural capital: Once the valuable natural capital is identified, Mento employs scientific and economic methodologies to measure and value the ecosystem services provided by these assets. This valuation process helps determine the amount of stable assets that can be issued based on the value of the natural capital.
- Creating nature-backed stable assets: Using the valuation data, Mento mints stable assets that are backed by the identified natural capital. These stable assets can be used for various financial transactions, such as remittances, payments, savings, or investments, while ensuring that the underlying value is tied to the preservation and sustainable use of natural resources.
- Monitoring and verification: To ensure transparency and accountability, Mento establishes a robust monitoring and verification system to track the health and condition of the natural capital assets. This helps maintain the integrity of the nature-backed stable assets and assures users that their value is tied to real-world environmental impact.
- Community engagement and governance: Mento actively involves local communities, environmental organizations, and other stakeholders in the governance and decision-making processes. This ensures that the benefits generated from the nature-backed stable assets are distributed equitably and that the preservation of natural capital aligns with the interests and priorities of the communities involved.
By implementing nature-backed currencies, Mento aims to create a financial system that not only provides economic stability but also contributes to the preservation and regeneration of the environment. It aligns monetary incentives with sustainable practices, fostering a symbiotic relationship between financial prosperity and environmental well-being.
Contributing and Providing Feedback
As mentioned earlier, community engagement and feedback are vital for the development of Mento. You can actively participate by visiting the Mento forum post and sharing your thoughts, suggestions, and ideas with the community. Additionally, the Mento team organizes feedback sessions where you can directly engage with the team and contribute your insights.
Your feedback could range from economic models and technical improvements to environmental sustainability measures and use case suggestions. Mento’s goal is to create an inclusive platform that addresses the needs and aspirations of various stakeholders, and your input can play a significant role in shaping its future.
In conclusion, Mento’s vision of combining monetary inclusion and planetary inclusion through nature-backed stable assets holds immense potential for fostering sustainable economic growth while preserving and regenerating the environment. Your active involvement and feedback can help accelerate the realization of this vision and contribute to building a better and more equitable financial system.