Whitepaper
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Whitepaper

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Abstract

Spark.eco is a tool that makes funding environmental work easy. Through the use of a smartcontract, donations are made and then automatically dispersed to organizations working on solutions to slow the effects of climate change. Instead of converting Ethereum into FIAT to make donations Spark.eco allows for donations directly on the blockchain.

  1. Introduction

1.1. Cryptocurrency Carbon Footprint

  • Bitcoin, Ethereum and other cryptocurrencies use a proof-of-work blockchain to secure transactions which uses an enormous amount of electricity.
  • University of Cambridge estimates that Bitcoin and Ethereum combined use ~157 TWh of electricity or ~111 million metric tons of CO2 annually equal to the usage by some smaller countries.
  • Artists, musicians and creators are minting (creating) non-fungible tokens (NFT) at a rapid rate as a new way to sell collectible digital art and music. These NFT’s are primarily being minted on the Ethereum blockchain.
  • The biggest negative criticism of this new NFT trend and cryptocurrencies is the gigantic carbon footprint. Little has been done to date to mitigate the impact of the largest cryptocurrencies Bitcoin and Ethereum.

1.2. The solution

  • Create the first renewable energy and carbon offset fund in the cryptocurrency space. We will utilize blockchain technology to fund real world solutions to climate change. We will make it easy to make cryptocurrency donations to environmental organizations.
  • Fund projects in the following categories:
    • Renewable energy projects
    • Carbon offsets and land conservation
    • PoS/ETH2.0 development
  • Form a 501(c)(3) non-profit organization so that donors can take advantages of tax efficiencies of their donations
  • Grow a community of people working to make the maximum impact to slow the effects of climate change. This also includes building community with the people who are impacted by the fund.
  • Move from a centralized to a decentralized organization. Form a Decentralized Autonomous Organization (DAO) which will
    • Provide a way for artists to easily donate a portion of NFT sales to the fund.
    • Allow for anyone with cryptocurrency to donate to the fund via a smartcontract address.
    • Provide transparency of the funds and the way they are used.
    • Allow for community control of the fund including voting on the use of the fund.
  • Support community owned solar projects that can reduce the cost of electricity and allow for the ownership stake in projects. In addition a portion of the revenue from these projects is donated back to Spark.eco.

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2. Use of Funds

2.1. Renewable energy projects

  • Partner with nonprofits working to deploy solar in developing communities
  • Support projects that are community driven and decrease the use of diesel and coal power
  • Focus on communities where existing crypto mining facilities are operating
  • Support community owned projects that promote community ownership

2.2. Carbon offsets and land conservation

  • Work with organizations that help developing communities preserve forested land.
  • Support organizations deploying certified carbon offset projects

2.3. PoS/ETH2.0 development

  • Help fund projects deploying ETH 2.0 and PoS development

3. The Future of Spark.eco

  • The current NFT boom provides an excellent time to launch this project. Many collectors, artists and people on twitter have raised concerns about the environmental impact of the crypto space.
  • While we see an opportunity to launch this project as a solution for the impacts of NFT’s we hope to become the preferred method for offsetting the impact of other projects in the future.
  • We also believe with the growth of the crypto space there is an opportunity for the crypto community to help drive adoption of renewable energy projects.