• Proposal
• The bet we're making
• Returns
• Model
• Value Creation
• Eco Credits
• Infrastructure Convertible Loans
• Shared Insurance
• Research
• Interviews
• Foundation / Impact Fund
• Coop banks / Consultants & Platforms
• (cs)DAOs
• Dapps Eco
• Insights
• Demand
• Supply
• Fund sources & Model

Proposal

Bioregional Development with Cooperative Banking

Need: Test the key assumptions

The bet we're making

1. ecocredits are one of the key ways to finance green transition
2. ecocredits demand would grow with climate change struggles & governmental climate regulation
3. tokenized ecocredits would be among the most useful tools by 2030 for companies with NetZero goals
4. a portfolio of well-curated web3 ecocredits would grow in value by 2030 significantly
5. a developed web3 ecocredits infrastructure and good governance would increase the value of the ecocredits

Returns

• Financial capital: ~10% annual planned yield ($ value) ~RWA risk profile
• 5% stables
• 5% $REGEN - 6 years maturity
• Social capital, such as influence and connections.
• Material capital, non-living physical objects, both raw and processed (food, energy)
• Living capital, living beings including plants, animals, and soil
• Intellectual capital, expertise & merit
• Experiential capital, knowledge gained by doing
• Cultural capital, shared knowledge of a community
• Spiritual capital, religion, spirituality, or other means of connection

Model

https://miro.com/app/board/uXjVMzbxWOc=/

Value Creation

Systemic investment in the field of

• Cultural adoption – web3, refi,
• Institutional adoption – orgs, govs etc

for the new class of ecological assets.

Research

Policy & Market:

Frameworks:

‣

Pocket Ecological Institutions

Journals:

Interviews

Insights

Demand

• There are a lot of impact SMEs globally that could use loans/financial services, but are underserved now in regions of South America, Africa, Eastern Europe, Turkey, Asia
• Many traditional businesses (like agro), usually need $50-150k for a short-term in stable coins (less than a year) for capital investments
• But also some digital projects/startups (considered to be more risky) need working capital (mostly salaries)
• Typical yield could be around 10-20% annually (can translate to 5-12% for the lender after all fees)
• There might be a guarantor, assets in collateral or track record
• So far the projects I’ve talked to were from different countries and types, so hard to make generalizations on risks, their alternatives and contracting terms
• Small projects can’t easily provide all the project documentation (thus need smth like a “broker” or another specialist to help them), also there’s some impact, but hard to measure systemically (maybe solved with science advisors, but still mostly debatable)

Supply

• There are a number of dedicated funds like EthicHub (for coffee farmers in Mexico) or Helios DAO (for solar)
• Deals on Goldfinch (Asia, Africa examples) can reach multimillion, multi-year, 11-13%
• Kataput’s fund focuses in the impact venture model (reaches 20% IRR), not suitable though for such investment (I guess Cerulean is pretty much the same)
• There’s some demand for solidarity in banking (1 person holds money in a coop bank despite it providing somewhat worse digital services, but good in nature)
• The model might be less attractive on the bull run, but much better in the bear market
• Models like Grameen usually receive the initial capital as a donation, or at least at very good terms from big companies, public figures or governments as a way to fight poverty
• In any case some form of institutional funding is considered for scaling
• Models like VitaDAO are successful in niches, though they mostly fund early-stage research, take many years to come to the market, and return investments

Fund sources & Model

1. Indivisible reserves
2. Internal/angels (from the community itself)
3. Orgs
4. States