Ever since blockchain technology was invented, people have been exploring new ways to use it for solving problems in different industries. One of these real-world uses is called Regenerative Finance, or ReFi.
ReFi combines principles of regenerative economics with decentralized finance (DeFi). It is an alternative to the traditional financial system, which can be unsustainable in the long run.
To understand ReFi, we first need to know how regenerative economics works.
Unlike traditional finance, which focuses on how much profit can be made by one company or individual, regenerative economics considers the overall impact on the environment and the community.
It aims for:
Like DeFi, ReFi is blockchain-based, decentralized, transparent, open to anyone, and globally accessible. It focuses on sustainable growth, preserving natural resources, fighting climate change, and creating positive impact for the planet.
Here are some ways it’s being used:
Anyone can support sustainable projects by buying NFTs or purchasing tokens of said project. It’s an easy way to support companies that are eco-friendly and socially-conscious.
Decentralized autonomous organizations, or DAOs, can be created to support environmental and social projects or raise funds for a good cause.
Climate projects can offer incentives for activities that will help save Mother Nature, such as recycling, planting trees, installing solar panels, or switching to renewable energy sources. Blockchain-based apps make it easy for both companies and individuals to keep track of and monetize their efforts for the good of the planet.
ReFi is an exciting way to use blockchain technology to fight climate change.
Check out more helpful uses for the blockchain in our other short guides!