BUILDING THE NATURAL CAPITAL ACCOUNTING MODEL ON THE BLOCKCHAIN IS A GAME CHANGER!
The Living Economic System generates wealth, prosperity and abundance by monetizing invisible, dormant, new and unused assets on the blockchain.
Earth Dollar Creates New Wealth on the Blockchain
Earth Dollar and its Living Economic System will prove that we can generate wealth, prosperity, and abundance by caring for the Earth. By modeling the World Bank’s Natural Capital Accounting System on the blockchain, this new wealth generation system changes our current economic system from extraction to restoration. The appreciating natural capital assets back the value of the Earth Dollar. When more trees are planted, waters are cleaned and more food is grown, new wealth will be generated.
Earth Dollar represents the largest deployment of natural capital assets on the blockchain, which includes ecological services, natural resources, and social enterprises. These natural capital assets that are part of our World Heritage Sanctuaries are being co-stewarded in partnership with Indigenous Nations and local communities. The sanctuaries are protected from commercial exploitation and is expected to be restored to pristine conditions while lifting the people out of poverty. By incorporating the Natural Capital Accounting System on our blockchain platform, trillions of dollars of dormant assets can be freed up to revitalize global economies and to heal our planet. This is our Living Economic System.
Renewable natural capital assets such as spring water, carbon credits, medicinal plants, taxes, and sustainable industries can be monetized to create multiple revenue streams that support and add value to the Earth Dollar.
The Earth Dollar is expected to be the world’s largest asset-backed currency, with €3.22 trillion Euros of assets used to back its value.
Initial Valuation of Natural Capital Assets Backing Earth Dollar
The area of valuation for the Natural Capital Assets backing the Earth Dollar represents 18 million hectares of land as part of the Mother Earth Trust (World Heritage Sanctuaries). We have estimated that the initial asset value held in our World Heritage Sanctuaries is €6.91 trillion (Average Net Present Value), using the Natural Capital Accounting System. The initial value was calculated internally by using the Benefit Transfer Method (BTM), which combines current public data with the best available peer-reviewed ecological economics research from over 100 sources. (This estimate is part of a Living Document and is expected to be further refined by independent third parties and analysts in the coming months.)
Of the total €6.91 trillion in assets (Average Net Present Value), we expect to use less than 50% (€3.22 trillion Euros) of the assets in the future to back the value of the Earth Dollar/Smart Asset Tokens. The remaining assets shall be held in reserve as a buffer.
However, in the First Series Community Currency Sale we will be using only €3 billion of carbon credits and hemp products from our pool of assets to initially back the 300 million units of EarthDollar Community Currency, so that each EarthDollar Community Currency is backed by €10 Euros of carbon credits. We chose carbon credits for the initial backing because it is one of the most liquid, tradable and well-known natural capital assets, aside from fresh water. This represents only 0.1% of the initial value of €3.22 trillion Euros we plan to use. The remaining 99.9% of the assets will be held in reserve for later use.
(Note: the figures below are in millions. € 12,294,316 M is actually € 12,294,316,000,000 or € 12.29 trillion)
Total Economic Value of Nature (on the entire Earth) was estimated to be €116 trillion per year in 2014.According to a study published in the journal "Nature" by Robert Costanza
Total Value of Nature (the entire Earth)
In an extensive study led by Robert Costanza, thirteen ecologists, economists and geographers estimated the global value of 17 ecosystem services at €116 trillion Euros per year (US $145 trillion per year) updated as of 2014. The results were published in the journal Nature. We believe the 2018 figures will be much higher due to inflation. Standard peer-review reports use a 100 year standard to estimate the value of nature. This figure did not include minerals, oil, fossil fuels, fresh water, the oceans, fishes, marine creatures, or other factors.
NATURAL CAPITAL IS THE FOUNDATION OF ALL OTHER CAPITAL
The world’s stock of natural assets includes geology, soil, air, water and all living things.
WHAT IS NATURAL CAPITAL?
Humans derive a wide range of services from natural capital, which is also referred to as ecosystem services. This is what makes human life possible.
The most obvious ecosystem services include the food we eat, the water we drink and the plant materials we use for fuel, building materials and medicines. There are also other less visible ecosystem services such as climate regulation, natural flood defenses provided by forests, the billions of tonnes of carbon stored by peatlands, or the pollination of crops by insects. We must also include the cultural ecosystem services such as inspiration we get from wildlife and nature.
Earth Dollar is a contributing member of the Natural Capital Coalition. Our aim is to help write new protocols on Natural Capital.
Natural Accounting System
The Earth Dollar is one of the world’s first currencies using Natural Capital to support its value. The accounting system for Natural Capital is being steered by the Economics of Ecosystems and Biodiversity (TEEB) and is expected to replace the old U.S. GAAP accounting system by the year 2030 to fulfill the UN Sustainable Development Goals. Natural Capital Accounting System (NCAS) is the process of calculating the total stocks and flows of natural resources and services in a given ecosystem or region. The NCAS basically makes the invisible values visible. It acts as an accounting tool that can help measure the full extent of a country’s natural assets (produced infrastructure, social and human natural resources) and give perspective on the link between the economy, ecology and our environment. Using living trees, fresh water, carbon credits and the treasures of Mother Earth to support the value of the Earth Dollar will reconnect humanity back the Source of Life. War, destruction of the environment, clear-cutting of trees, climate injustice, and other negative human behaviours are destroying our “home”. The Earth Dollar is designed to increase in value when the environment is clean, the forests are thriving, there is peace, people are healthy, the community is strong, and people treat our home (planet Earth) with respect… bringing sustainable prosperity to everyone on Earth.