# Sustainability Vertical Strategy

## Pillars

1. Climate data oracles
1. Voluntary carbon credits
1. Middleware/Integration
1. ReFi
1. Games
1. Art

## Pillar Breakdown

**Climate data oracles**
- High quality oracles for climate-related data so that climate data is readily available to a variety of on-chain applications
- Transparent and reliable computatin on that data

**Voluntary carbon credits**
- High quality and transparently sourced carbon offsets, including:
1. new supply of carbon offsets,
1. tokenizing off-chain offsets, and
1. pseudo offsets
- Market and trading infrastructure to support deep trading liquidity and semi-fungibility for all on-chain carbon credits
- Standard to record the retirement of carbon credits, including optional data on who is retiring and for what purpose
- Fractional offsets to offset relatively little activity

**Middleware/Integration**
- APIs for dapps and bakers to auto-offset their emissions
- Reliable calculation standard to calculate a dapp's needed offsets, along with fractional offsets
- APIs for directing funds to climate change solutions
- Standard for record keeping on-chain that records offsets and donations to climate change solutions

**Games**
- Games that offset their own emissions
- Games that educate on climate change and incentivize climate change action
- Games that incentivize further consumption (retirement) of carbon credits or that integrate offsets

**Art**
- Artists have option use integration APIs to split royalties or sales with climate change solution groups
- Art communities and/or marketplaces dedicated to countering climate change
- Artists can target specific (e.g. endangered) animal species, plant life, ecosystems, etc.

**ReFi**
- Financial applications built on carbon credits
- Goal of capturing trading value and funneling it back to carbon offset groups;
- Profits from secondary market trading redirected to carbon credit producers

## Pillar Approach and Building Blocks

| Pillar | Existing Building Blocks | Approach |
| - | - | - |
| Climate data oracles | (possible) Mantle Labs | Bring in data oracles which have use-cases for their data and other groups ready to build on it |
| Voluntary carbon credits | 4C, Kora | (1) Focus on supply of new credits (4C), wrapping of existing credits (missing), and pseudo credits (Kora) (2) Ensure tokens are interoperable (e.g. FA2) |
| Middleware/Integration | (none yet) | (1) Start with infrastructure for bakers and Kanvas to offset emissions (2) Create standard API interface for applications to auto offset on Tezos Agora |
| ReFi | (none yet) | Focus on ReFi protocols that share profits of secondary trading with producers of carbon credits |
| Games | (none yet) | (1) Focus on games which educate and offset (2) Avoid gamiefying carbon offsets in the short term |
| Art | (none yet) | (1) Marketplaces dedicated to climate change, e.g. giving transaction fees to (2) Artists can target/partner with specific carbon offset producers, species, ecosystems, etc. |

## KPIs

| Success factor | KPI |
| - | - |
| Tezos a top chain for carbon offsets | Tonnes of carbon credits minted, traded, and retired on Tezos |
| On-chain activity funnels money to sustainability projects | Funding (on-chain) directed to verified sustainability projects |
| Tezos ecosystem completely sustainable | Percentage of on-chain activity (baking and applications) that voluntary offset their on-chain emissions |
| Value locked in ReFI protocols | TVL in ReFi protocols |
| Value locked in sustainability gaming | TVL in gaming contracts |
| Tezos a top chain for sustainability-focused art | Volume of sustainability-focused art trades |

## Crown Jewels

| Key Target | Key Building Blocks | Approach |
| - | - | - |
| Cap and trade/regulatory offsets on-chain | Reputation and credibility | Strong government and regulatory relations, strong presence at political climate conferences |
| Large multi-national corporations (e.g. Razer, Google, Amazon, Microsoft) offset emissions on Tezos | Relationships and reputation with these groups | Long-term relationships with these firms, start with 4C reputation |
| Current carbon credit verification groups (e.g. Gold Standard, Verra) mint their credits as tokens on Tezos | Strong, reliable, transparent, and relatively low risk tokenized carbon credit landscape on Tezos | Cultivate a high quality tokenized carbon credit landscape on Tezos that attracts institutions |