New Zealand-based NFT digital collectible App VeVe is launching the first carbon-neutral NFT platform
A few hours ago, we wrote about why NFTs are harmful and bad for the environment. As NFT mania reaches a fever pitch level, there are growing concerns about the environmental impacts of blockchain technology and NFTs. However, there are a couple of tech companies working on ways to address the challenges associated with minting new NFTs. One of these companies is Veve, a New Zealand-based tech startup and provider of an NFT digital collectible platform. Through its app, VeVe brings the world of collectibles into the digital realm and right into the palm of your hand.
Last week, Veve announced plans to become the first carbon-neutral NFT platform, beginning with a commitment to offset 100% of the carbon footprint caused by the minting of NFTs, negating the environmental impact caused by distributed ledger technologies. Initially, VeVe will offset the carbon footprint by purchasing carbon credits equal to the amount of CO2 used in minting NFTs.
Additionally, VeVe has also announced a grant of 1 billion OMI tokens – equal to approximately $7 million USD – for environmental non-profits and charities who wish to mint and sell NFTs for fundraising and other purposes. The grant could go to offset the cost of graphic design, animation, and technological development of NFTs.
Co-Founder and COO, Dan Crothers said, “Being sustainable has always been a strong priority for VeVe and ECOMI since our founding. Our carbon neutrality pledge is a step toward making NFT digital collectibles and the digital AR metaverse part of a green, environmentally friendly future.”
Concerns about the environmental effects of blockchain technology have grown as the amount of electricity used and the carbon footprint of the Ethereum blockchain have grown exponentially. Ethereum’s blockchain, which uses the Proof-of-Work consensus, incentivizes miners to compete to validate transactions. As the price of Ethereum increases, the economic incentive to invest capital in more computational power increases, causing electricity usage and carbon footprint to spike.
VeVe currently operates on a blockchain that does not incentivize competition amongst miners. There is no incentive to increase electricity expenditure because rewards are not tied to energy consumption. As a result, minting an NFT on VeVe requires 99% less energy consumption and has a 99% lower carbon footprint compared to minting on the Ethereum blockchain.
GOING ZERO NET CARBON
While our carbon footprint is significantly lower than peer technologies, it has always been important to VeVe to achieve net-zero carbon at some point. As a platform that hosts major brands, licensors, artists and more, VeVe is now able to provide these stakeholders the ability to market their NFTs as sustainable. According to NYU Stern, sales of sustainability marketed products are projected to reach $150 bn in 2021, and since 2013 have grown 5.6 x faster than conventional products.
VeVe CEO, David Yu said: “Moving from physical to digital products already cuts down on packaging, logistics, and manufacturing waste, however, we want to ensure our products are as environmentally friendly as possible and are committed to completely neutralizing our carbon footprint and environmental impact.”
NFTs are not only suitable for collectors but are proving to be great fundraising mechanisms for purpose-driven causes including the environment. The VeVe grant will establish a pool of OMI tokens which can be used to pay for artwork, development and minting of NFTs where the proceeds go to the nonprofit. Additionally, the funds may be used for matching donations and other environmentally beneficial functions.