A Brazilian company that owns 410 square kilometers (158 square miles) of the Amazon rainforest is offering a new way to fund conservation: the sale of non-fungible tokens (NFTs) that allow buyers to sponsor the conservation of certain areas of the forest.
NFTs are a type of crypto asset that has gone viral in the last year, with a unique digital signature ensuring that it is unique. Other efforts to fund conservation through NFTs include plans for wildlife sanctuaries in South Africa.
In Brazil, a company called Nemus on Friday began selling NFTs to give buyers unique care for different stretches of forest, with the proceeds dedicated to preserving trees, rejuvenating felled areas and promoting sustainable development.
Nemus founder Flavio de Mira Pena said that token holders would not own the land itself, but would have access to basic information about its preservation, from satellite images to licensing and other documents.
He said Nemus sold 10% of the initial token offer for 8,000 hectares on the first day.
“I think this will accelerate rapidly in the coming weeks,” Bina told Reuters, adding that blockchain technology will ensure transparency in the use of funds.
The area of u200bu200bthe plots varies from a quarter of a hectare to 81 hectares (0.6 to 200 acres), the location of which buyers will be able to determine using online maps.
Pena, who hopes to raise $4 million to $5 million to buy an additional 2 million hectares of land already under negotiation in Bawini, Amazonas, said non-financial land for the smallest land sells for $150 and the largest is $51,000.
Besides preserving the forest, Pena said the money will support sustainable development efforts such as the harvesting of acai berries and Brazil nuts by local communities in Baweni, an area the size of Belgium.
Each token comes with artwork of an Amazon plant or animal and is processed by San Francisco-based Concept Art House, a content developer and publisher for NFTs.
Critics have questioned the value of NFTs on environmental grounds because tokens that use blockchain technology require intense computing power, leading to increased demand for electricity generation that emits greenhouse gases.
Pena dismissed this view, saying that preserving threatened areas in the Amazon far outweighs the environmental cost of NFT transactions.
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