Zero-Carbon Proof: Which ReFi Projects to Watch in 2024

In recent decades, many sociologists and economists have debated what it really means to be a “holistic person,” living in harmony with others on a shared planet, and how to achieve prosperity for every individual. One answer to these questions is regenerative economics (ReFi), which aims to harmoniously unite various methods for improving quality of life in the modern world. Today we examine its core principles, how it has become part of decentralized finance, briefly discuss the benefits and drawbacks of its practical application, and outline the basic principles of operation of existing ReFi-organizations.

How the regenerative economy emerged

In the broadest sense, regeneration is the ability of living organisms to repair damaged tissues over time, and sometimes even entire lost organs. This concept underpins the entire regenerative economy. Proponents argue that its systemic, restorative impact on the main spheres of life will, in time, significantly improve the planet’s ecology.

If, in order to safeguard the environment and address social problems, we intend to reform the financial system, we should begin by rethinking economics. A key aspect here is reconsidering the concept of money itself. The Capital Institute, studying regenerative economics, highlights eight dimensions of capital — social, material, financial, life-sustaining, intellectual, emotional, spiritual and cultural. According to the institute’s experts, each of these principles should shift toward regenerative existence.

In 2015, the idea was advanced by John Fullerton, a former JPMorgan banker, and Dr. Sally Goerner. They defined the following goals of regenerative finance (ReFi):

• conservation and restoration of resources. A focus on projects that contribute to the restoration of soil, forests, water sources and other elements of the natural environment;
• social justice. Participation in initiatives aimed at improving working conditions, education, and equality across all areas of public life;
• long-term sustainability. Investing in projects oriented toward long-term prospects, not short-term profits.

One of the early pioneers in ReFi was the San Francisco–based RSF Social Finance. Since its founding in 1984, it has operated in accordance with the core principles of “impact investing,” which preceded Fuller-ton’s theory.

“In regenerative finance, the aim is to be able to enact positive changes, and financial return is a by-product. It sees money as a means, not as a goal. It is about circulation, not accumulation,” explains RSF Social Finance’s chief executive Jasper van Brakel.

Perhaps the concept of “invested impact” inspired later economists to develop regenerative economics. The term itself was coined by staff at the Rockefeller Foundation in 2007. It originally described the deliberate accounting for intangible assets alongside material and financial assets. The commitment to measuring social and environmental indicators is a defining attribute of regenerative economics, which is also known as “impact investing.”

The broader notion is “ESG-investing. It implies investments in companies that meet three criteria:

• environmental stewardship;
• cultivation of good relationships with clients, employees, partners and the local community;
• adherence to leading practices of corporate governance.

All of the above research and approaches have led to the emergence of regenerative finance. Taken together, ReFi represents a movement DeFi-enthusiasts. But its aims go beyond creating new financial systems and seek higher-level profits.

A striking example of practical ReFi application is the issuance of decentralised “green” bonds on the blockchain, which makes investment opportunities more accessible and transparent. By financing projects, they embody ReFi’s ethos, delivering environmental benefits and financial returns.

Which projects to watch

The regenerative finance ecosystem today is diverse, but this article focuses on the following:

• platforms for trading and investing in “green” assets;
• financial support for startups and enterprises working in sustainable development;
• core educational resources for newcomers to ReFi.

Among the already-implemented projects there are both pioneers and newly created platforms and organisations. The launch of most of them involved well-known blockchain communities:

• ReFi DAO. A community focused on developing services and public goods for the regenerative finance ecosystem. This includes educational programs, creation of opportunities to implement “green” strategies, fundraising support, engagement and mobilisation through a mix of online platforms, and moderation of multimedia resources. The main focus of this DAO activity is incubating and supporting the growth of local ReFi nodes across the world. The ReFi DAO blog regularly highlights current events. Recently the community voted to adopt clear DAO norms, and next year ReFi DAO v2 with governance token is expected to launch.
• Gitcoin. A platform built for developers of open-source applications who need funding and support. The project is governed by a DAO, and holders of the native token GTC can use it to participate in votes. The platform offers a range of tools, including Gitcoin Passport, bounty campaigns, virtual hackathons, a system for rewarding contributions to certain projects and quadratic funding grants.
• Regen Network. A blockchain protocol launched in 2017 using Cosmos SDK, designed to record and verify data on ecological health. They serve as a base layer on which other projects can build networks for climate-oriented business models. It is designed to ensure transparency and reliability of data about ecosystems, and to incentivize sustainable practices in agriculture and forestry. Regen Network uses a Proof-of-Stake consensus and offers a toolkit and infrastructure for restoring natural ecosystems via the creation of digital carbon credits. Regen Marketplace & Registry gives landowners the ability to sell their ecosystem services directly worldwide. They also have their own wallet — Regen Wallet.
• Climate Collective. Founded in 2021 by the ecological blockchain community Celo. It is currently transitioning from its own L1 to Ethereum L2. Previously, Celo developers released the stablecoin Celo Mento, which ties currency value to “green” assets. Climate Collective focuses on creating trusted markets oriented toward regenerative Web3 applications. The project offers grants to accelerate the development of regenerative Web3 applications and maintains a map—Web3 Climate Map, created to display the state of products, protocols, sources of liquidity, and DAOs in the ReFi ecosystem.

• Kolektivo. A company founded in 2020 by Kolektivo Labs and Curve Labs. It possesses institutional technologies for launching, financing and governing regenerative economies and community currencies. Kolektivo aims to reflect the value of natural capital and ecosystem services through token engineering—combining social‑environmental and computer science to enable cyber-physical coordination.

There are also numerous projects born from the recently revived Solana blockchain. In this community they know how to catch the funding wave in time and lay the groundwork for ambitious initiatives. In Solana they claim that their blockchain is ideally suited for creating regenerative systems ranging from forest restoration initiatives to investing in the blue economy. Among Solana’s successful ReFi projects are: GainForest, EcoToken, Water DAO, Sunrise Stake, Deentra, Enrex, Atlantis, De_Plan, Single.Earth, Coral Tribe.

ReFi and social justice

One of the favourite topics among proponents of a utopian future, enthusiasts and practitioners in the crypto sphere, is universal basic income (UBI). In ReFi this concept could find a permanent home, becoming an integral part of it. This socio-economic model proposes providing everyone with periodic financial support to ensure a basic standard of living. Proponents argue that its implementation can be achieved with Web3’s decentralisation and community governance through DAOs.

Many readers already know such philanthropic projects as GoodDollar, Proof of Humanity and Circles, which were among the first to implement UBI through their communities. But over time more Web3 organisations have emerged. Here are a few:

• NEAR Impact. An organisation supporting creators and their projects in the ReFi space, operating under the principles of positive impact within the blockchain ecosystem NEAR;
• Impact Market. A protocol built on Celo using Libera Crypto Wallet and the PACT token, enabling anyone to become more financially resilient through UBI, microcredit, and a Learn-to-Earn system to become more financially sustainable (Learn-to-Earn);
• Glo Dollar. A stablecoin designed to fight poverty. Its operating model is straightforward: the more people use this dollar-pegged stablecoin, the more distributions go to help those in need. It’s enough to buy Glo on Ethereum, Celo or Polygon and simply stake the coins—the system will distribute accrued interest between the staker and the fund. The reporting on aid funds is fairly granular.

Conclusions

In summary, today we observe a very broad niche in regenerative economics, actively filled by many Web3 projects. However, queues for charitable funds are not yet visible, and the blockchain race for this space has not yet begun. Yet it is clear that while Celo leads the sector, competitors from Solana, Cosmos and NEAR could quickly mobilise and catch up if they choose.

Criticism of regenerative finance often reduces to the industry’s standard question: “Do PoW- or PoS-based projects do more harm to the environment than good?” There are also opponents who argue about the sanctity of nature, which cannot be “tainted” by tokenising its benefits. But why then can it be polluted and exhausted by other means, leading to an unequal distribution of capital when a large portion of the world’s population lives on $2.50 a day?

Author: Sergey Golubenko