Drivers
- Enhanced security and risk protection: Web3 technologies offer improved security measures for regenerative business models, while also providing risk protection mechanisms for natural assets and ecosystems. Web3-enabled platforms provide new business tools and diverse forms of cashflow, allowing for more flexible and sustainable economic structures in regenerative businesses.
- Increased traceability and compliance: Web3 technologies enable better traceability of products and processes, aligning with evolving government regulations and increasing transparency in supply chains. New models create stronger social and economic incentives for regenerative practices, especially in raw material production and resource management, encouraging sustainable behavior.
- Deepened connection with nature: These models foster a stronger connection between people and the environment, helping individuals and communities recognize the intrinsic and economic value of regenerative practices. These models promote greater autonomy for individuals and communities, potentially allowing for sustainable livelihoods directly tied to regenerative practices, such as living from own crops.
Blockers
- Unsustainable models: Many Web3-enabled regenerative business models fail due to lack of long-term viability and economic sustainability. Also many models depend too heavily on good intentions rather than robust economic frameworks, limiting their scalability and impact.
- Misaligned incentives: Current systems often create wrong incentives, failing to properly reward regenerative practices or discourage harmful ones. Difficulty in defining clear business models and lack of strong economic incentives make it challenging to attract investment and ensure financial sustainability.
- Complexity & Trust barriers: The technical complexity of Web3 and blockchain technologies makes it difficult for many to understand and engage with these new models. Lack of trust in new technologies and systems, coupled with the strong legitimacy of legacy systems, hinders adoption and growth.
- Regulatory challenges: Government regulations can sometimes impede innovation in this space, creating uncertainty and potential roadblocks.