Beyond Profit: Building a Human-centric Economy in a World Obsessed with Money

Humans are a curious species. They care about short-term money and status more than humanity’s future.

No worries, I will not preach endless levitation and fake positivity with a heart full of love. The world is more complex than that. I will focus on how technology and blockchain can help us in one of the critical points: reforestation.

Very few people think about the value they can bring to the world. Instant gratification and short-term profits are supreme in a world where we commoditise goods, services, and even love.

This article will explore ways to build a human-centric economy where well-being is more important than money.

Money talks

Last year, as I reflected on what I would do in the future, I consumed a lot of social media, like podcasts and videos. It is no surprise that most successful creators are the ones teaching people how to make money. From investment advice to entrepreneurship, everyone seems to rush to get the next idea to (guess!) material riches. 

Things are the same in the corporate world. Many companies obsess over their top line and profitability. Very few have created impactful solutions to save the Earth, solve hunger, or eradicate poverty. 

Even in the climate change sector, the most impactful measures are those motivated by money. Tax advantages and special financing conditions spark innovation in this space.

Consider the 2019 Amazon rainforest fires, largely attributed to deforestation driven by the demand for agricultural land and timber. The immediate financial benefits to a few come at the cost of long-term environmental degradation that affects the entire planet. This is just one example of how profit-driven decisions have devastating consequences for humanity’s future. 

Different problems in different parts of the world

In the Western world, we discuss reducing carbon emissions, limiting plastic usage, or using electric bikes. But let`s be honest: a family with limited resources in developing areas has a different concern. For them, tomorrow means dealing with disease and poverty, making a minimal income to put food on the table. 

The new economy should consider a more equitable distribution of wealth. An economy that values humanity cannot permit the suffering of millions. All while a few indulge in the extravagant display of their riches.

What is the data saying about reforestation and climate change

Jean-François Bastin and his team published a groundbreaking study published in Science in 2019. The study revealed the immense potential of reforestation as a natural solution to combat climate change.

By analysing satellite data, they estimated that our planet could support an additional 0.9 billion hectares of forest. And this would be possible without disrupting urban areas or agricultural land. This reforestation effort could sequester up to 205 gigatons of carbon. This will offset roughly 45% of the carbon emissions produced by human activities since the Industrial Revolution. 

According to Global Forest Watch, between 2001 and 2023 global forests contributed a net carbon sink of -5,48 GtCo2e/year.

Source: https://www.globalforestwatch.org/dashboards/global

While reforestation is a powerful, cost-effective strategy to address climate change, it is not enough. We need urgent measures to reduce carbon emissions and the usage of fossil fuels.

Reforestation as a way to create prosperity

Basic human needs come first

We see more organisations activating in reforestation and climate change areas. We started creating tokens to encourage people to care for trees, collect garbage from rivers, and remove plastic from the seas. However, we need to consider the economic factor to scale these efforts fast.

I have seen communities in Tanzania try to make additional money through agriculture or cash crops. The rapid expansion of the population led to practices like “slash and burn agriculture,” illegal timber exploitation, and massive deforestation. 

What if instead of cash crops and timber exploitation, they planted trees and earned an income to support their basic needs? 

Build a human-centric economy through decentralisation

Of course, one can volunteer, but volunteering would not work for someone who needs an income. Instead of paying people for jobs they hate, we can stimulate them to work for causes that support humanity and Earth. Many people in between jobs could do what they love and help themselves through their income. 

The new generations are less inclined to get a 9 – 5 job. In the future, we will likely see more and more people working micro-jobs and jumping from one gig to another. We can create more micro-jobs in climate protection and purpose-driven businesses where passionate people can earn an income. 

For such tokens to work, we need a massive scale and a marketplace to exchange tokens. We need to create economic incentives for all communities to support the Earth.

Isn`t this the way to distribute money better and offer access to capital to people who would otherwise be unable to participate in the economy?

One might wonder why not do it the old way, through grants and donations allocated to less favoured communities. Sure, but this is how we did things so far. However, we still have major financial exclusion problems, deforestation, and pollution.

Unfortunately, like in every area, corruption is a reality. As history proves, no government subsidy or centralized program would allow full transparency.

Blockchain is the real solution that ensures transparency and traceability of funding activities. There is no government, no corrupt authorities, and no politics involved. 

Technology helps to build a human-centric economy

Imagine a poor woman with kids in a remote area in the world. She cannot feed her children; they have no access to healthcare professionals, and her only way of making money is to work on the black market.

What if she could plant a few trees or help clean the local river while documenting her work with a simple web application on her mobile phone? Once she does it, we record the information on the blockchain, and she gets an income that allows her to become independent. 

It might be a little help, but sometimes, this is the starter to build a life. Imagine communities of people that care for the planet while they get paid for their efforts. Isn`t this a silver bullet?

We can transform the deserts into lush Oasis, one tree at a time. Of course, this is not easy, but with the increasing pressure of ESG regulation, more corporations will follow the new strategy. 

Examples of blockchain-based projects focused on reforestation

More than a few blockchain-based initiatives have proven successful in addressing reforestation. Let`s have a look at a few very interesting ideas.

TreeCoin

TreeCoin is a hybrid token that combines cryptocurrency with a reforestation project in Paraguay. Each token represents a share in sustainable forestry initiatives where investors receive a financial return and contribute directly to the planting and maintenance of trees. The project aims to plant over 10 million trees, helping to combat deforestation while providing a sustainable source of income for local communities.

Veridium

Veridium is a blockchain-based platform for environmental projects, including reforestation. By tokenizing carbon credits, Veridium facilitates funding projects that plant trees and restore forests. Their technology allows contributors to track the impact of their investments in real-time.

Green Earth Tokens (GET)

This project uses blockchain technology to support global reforestation efforts by issuing tokens representing carbon offsets tied to tree planting projects. Individuals and businesses can offset their carbon footprint by purchasing GET tokens,  while contributing directly to reforestation efforts worldwide. The blockchain ledger provides transparency, ensuring that every dollar is spent on planting trees.

Earth Token

The Earth Token initiative is part of the Natural Asset Exchange (NAE) blockchain platform, which aims to create a new market for natural assets like reforestation projects. By tokenizing these assets, Earth Token allows for direct investment in reforestation, helping finance large-scale tree-planting operations in deforested areas. This creates a transparent and accessible way for individuals and organizations to contribute to reforestation.

Pachama

While not a token, Pachama uses blockchain technology to verify and track carbon credits from reforestation and forest conservation projects. Pachama partners with forest restoration initiatives across the globe, using satellite imaging and AI to monitor forest growth and ensure trees are planted and maintained as promised. This data is then recorded on the blockchain to provide transparency and trust in the reforestation efforts.

Blockchain is a solid technology that enables a human-centric economy and eliminates corruption. 

First steps to build a human-centric economy

First, we must acknowledge that climate change is a highly complex problem with no simple fix and will require an entire combination of approaches.  We need a different leadership paradigm to build a new world where authenticity is a prime value. But about that, I speak in other articles.

Let`s focus on reforestation, as this is one of the most important aspects to offset carbon emissions. Here are a few ideas to help scale the reforestation programs.

Establish Decentralized Autonomous Organizations (DAOs) for Reforestation

DAOs operate on blockchain technology, enabling transparent, trustless management of funds and resources. Members of the DAO could vote on which reforestation projects to fund, ensuring that decisions are made collectively by stakeholders rather than a centralized authority.

We can use tokenized voting within the DAO to give contributors a say in key decisions. For example, token holders could vote on which areas to reforest, which technologies to deploy, or how to allocate resources.

Smart Contracts for Automated Payments and Rewards

We must deploy smart contracts that automatically release payments or rewards when a reforestation project is complete. 

For example, a smart contract could release funds to local workers or organisations once video or satellite data confirms that a certain number of trees have been planted and are thriving. Insurance for trees is an essential component of building resilient ecosystems.

To reduce the risk of mismanagement even further, we can implement escrow systems through smart contracts to hold funds until specific, verifiable outcomes are achieved. This ensures funds are used as intended, with full transparency and accountability.

Blockchain for Transparent and Traceable Supply Chains

With blockchain, we can create an immutable record of every step in the reforestation process – from seed purchase to tree planting and monitoring. This means tagging each sapling with a unique identifier linked to the blockchain. In this way, anyone can trace its growth and maintenance over time.

All data related to reforestation projects has to be publicly accessible on the blockchain. Transparency allows contributors to verify that their investments are making a real impact. And this ultimately builds trust in the system. 

Crowdsourcing and Micro-Investments via Blockchain

We can develop blockchain-based crowdfunding platforms where individuals can invest in specific reforestation projects. These platforms could accept micro-investments from around the world, allowing anyone to contribute to reforestation efforts and earn tokens in return.

Implement micro-ownership by tokenizing parcels of reforested land, allowing individuals to own a small part of a reforestation project. These tokens could represent a share of the carbon credits generated by the trees, providing a financial return to token holders while supporting large-scale reforestation.

Tokenization of Carbon Credits

Another way to incentivize and secure scale is using blockchain to tokenize carbon credits generated by reforestation projects. These credits can be sold or traded on decentralized exchanges, providing a direct financial incentive for reforestation. The transparency and traceability of blockchain ensure that these credits are legitimate and verifiable.

We need solid economic incentives for communities worldwide to build a human-centric economy. Therefore, the tokens must be bought, sold, or traded on decentralized marketplaces. These marketplaces can operate with lower fees and greater efficiency, as no intermediaries exist. Thus,  individuals and companies can easily participate in reforestation efforts.

Global Data Networks and Satellite Monitoring

We can integrate satellite imagery, video assessment, and IoT sensors with blockchain technology to monitor reforestation efforts in real-time. These technologies can track the growth of trees, soil health, and other critical factors. Meanwhile, the data will be recorded on the blockchain for transparency. 

This ensures that projects are progressing as planned and provides evidence for issuing carbon credits.

Decentralized Data Networks: Decentralized data networks like Filecoin or IPFS (InterPlanetary File System) store and distribute reforestation data. Data will not be controlled by any single entity and is accessible to everyone. The key is to have a transparent way to monitor reforestation efforts.

Distributed Ledger Technology (DLT) for Funding and Resource Allocation

Peer-to-Peer Funding: Utilize distributed ledger technology to facilitate peer-to-peer funding for reforestation projects. This could be smart contracts that automatically allocate resources based on real-time data and predefined criteria. In this way, we are sure that funds are used efficiently and effectively without intermediaries.

Resource Tokenization: Tokenize resources such as seeds, tools, and labor required for reforestation. These tokens can be traded on decentralized exchanges, allowing project managers to acquire what they need in a transparent and efficient manner. Tokenization also enables the fractional ownership of resources, spreading the risk and reward across a larger group of stakeholders.

Scalability through Interoperable Blockchains

Cross-Chain Solutions: We need to implement cross-chain interoperability to allow different blockchain networks to communicate and share data seamlessly. This is particularly important for global reforestation efforts that may span multiple regions and ecosystems, each using different blockchain platforms. Solutions like Polkadot or Cosmos could be used to connect these ecosystems, ensuring data integrity and coordination across projects.

We can deploy Layer 2 scaling solutions like sidechains or state channels to handle the high transaction volumes associated with global reforestation projects. This ensures that the blockchain infrastructure can support large-scale reforestation without compromising speed or efficiency.

Building a human-centric economy – next steps

We will not solve the greed problem through these proposals. However, many want to build a human-centric economy that will allow humanity to thrive. As in any complex issue, we need to employ systems thinking. We need to reflect on the root cause of the problem and ways to create sustainable incentives. 

Let`s reimagine the future in a more purpose-driven, human-centric way. Push for change in your organisation and your communities. Conscious living is great, but we can do more than ditch plastic bags.

If you are in a leadership position, rethink your organisation’s focus. Consider your business’s long-term impact on people and the planet. When we build a human-centric economy, money is not a scope in itself. A well-designed, ethical business will automatically generate profits. 

If you are an investor, look beyond money and returns. Look for business owners who have the new purpose-driven economy in their DNA. Attract money from people who want to invest in long-term well-being rather than fast money-making. 

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