Web3 technology has been deliberating on its sustainability project, looking for alternative means to combat climate change and global warming. Thus, crypto analysts have turned to NFTs to receive some relief and reduce environmental pollution during the crypto exchange.
NFTs Carry a New Significance
With growing concerns about environmental pollution and climate change, topped with the rising accusations of energy depletion in the crypto ecosystem, NFTs serve considerable relief.
These are not mere digital tokens. Instead, they are a storehouse of information for a specific carbon offset batch. However, unlike the basic or standard NFT tokens, carbon NFTs are slightly different.
To serve the real purpose, these NFTs must be burned, and the process of burning NFTs is called “retirement.”
What is NFT retirement?
NFT retirement is a relatively new concept, and KlimaDAO explains this to simplify it for everyone. Here’s what they claim:
“Retirement means that someone is essentially taking that carbon offset and claiming it for its environmental benefit, meaning that they’re basically offsetting their emissions. Then that carbon offset is permanently taken out of circulation and can no longer be traded or sold to anyone else.”
KlimaDAO further mentions it is vital to burn these tokens. Burning them implies removing them from the database to prevent further trades and transactions.
Projects on Carbon Credit NFTs
With the growing awareness of climate change and energy depletion, several projects claim to use NFTs for reducing carbon emissions, including Mintcarbon and CarbonABLE. No wonder the current market worth of the industry is close to $ 850 billion. Hence, ruling out the chances of scams in such projects is currently impossible. However, curbing such scams is one of the most vital aspects of ensuring the success of such projects.
KlimaDAO, in its recent interview, claims it is crucial for carbon credit NFT projects follow international accreditations and standards to reduce the chances of scams. Thus, such NFTs must follow international norms on sustainability and fulfill their goals.